The bankruptcy of FTX stands out has been a complex procedure, characterized by enormous legal fees. The anticipated compensation for FTX creditors has seen a remarkable increase, more than tripling this year.
Now, FTX debtors and their Bahamian subsidiary, FTX Digital Markets, have agreed to synchronize their bankruptcy proceedings.
The agreement is a significant step in addressing the legal issues that have arisen from the collapse of the FTX group. The settlement is awaiting approval from both the US Bankruptcy Court for the District of Delaware and the Supreme Court of the Bahamas.
The deal between FTX debtors and FTX Digital Markets represents a collaborative effort to consolidate assets. They aim to synchronize the creation of financial reserves and coordinate the timing and amounts of fund distributions . This approach is intended to simplify the claims filing process for FTX.com customers, who are required to determine which entity to file their claims with. This introduces an additional decision-making layer.
Additionally, FTX Digital Markets is set to align its know-your-customer (KYC) procedures with the standards of the US, the Bahamas, and other jurisdictions. This alignment makes sure the process sticks to a range of legal requirements. It also demonstrates a commitment to regulatory compliance during the ongoing bankruptcy proceedings.