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FTX Bahamas claims deadline to be extended, what to watch for in unfair restructuring plan?

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FTX Bahamas claims deadline to be extended, what to watch for in unfair restructuring plan?

FTX creditor Sunil Kavuri shared an email response from FTX Digital Markets Ltd., the Bahamas entity of FTX, mentioning that the original deadline for claims on May 15 will be extended to June and beyond, with an official notice to be issued in the next two weeks. Creditors who have filed claims in both the Bahamas and the United States will have the option to choose which claims process to participate in.

FTX claims another channel, unfinished claims can be completed through FTX Digital before 5/15

Bahamas Claim Deadline Extension, Creditors Can Choose Where to Claim

According to FTX whale creditor Sunil, the original deadline for physical claims in the Bahamas, which was May 15, will be extended to June and beyond, with an official announcement expected within the next two weeks. Creditors who have applied for claims in both the Bahamas and the United States will have the option to choose which claims process to join.

What to Watch Out for in the Unfair Reorganization Plan?

Sunil previously criticized what he deemed an unfair reorganization plan, accusing the liquidation team of taking creditors' money and planning to issue checks as payment, with a clause that forfeits the claim if the check is not cashed within six months. He believes creditors should vote against this plan.

FTX also offers a 9% interest payout, and creditors with claims under $50,000 will receive 118% of the claim amount within 60 days.

FTX whale creditors are disdainful of the 118% reorganization plan: Liquidation team took our money

Another creditor, Arush, raised concerns about the proposal:

  • Need to pay 30% tax to the U.S. government
  • Need to pay capital gains tax to their own country's government
  • Will receive checks instead of stablecoins

If creditors are U.S. citizens or green card holders, they need to consider the high 30% tax rate imposed by the U.S. government. Additionally, cashing checks will raise taxation issues in Taiwan, where the basic tax rate for capital gains tax on overseas income up to 6.7 million is exempt, with a 20% supplementary tax rate on amounts exceeding that. These are the issues that large creditors need to consider and face.

However, currently there is no news about payments in stablecoins from the Bahamas entity, as the requirement on their website to provide the actual residence address of creditors suggests a higher likelihood of checks being sent. We will continue to track and update readers with the latest developments.