FTX Digital Extends Creditors' Claim Filing Deadline by Months
CryptoNewsTerminal Staff17 May, 2024
FTX Digital Extends Creditors' Claim Filing Deadline by Months
FTX Digital, an affiliate of FTX in the Bahamas, has extended the deadline for creditors to file claims. The new deadline will coincide with the Chapter 11 voting deadline, expected by the end of July or early August. The collapse of FTX, once the world's third-largest cryptocurrency exchange, has been a major event in the crypto industry. The official liquidation of FTX Digital and the Chapter 11 bankruptcy proceedings are separate processes. The original deadline for creditors to file claims was March 15th. The extension provides additional time for creditors to prepare and submit their claims. The voting deadline for creditors will be set in the future. Creditors will vote on a plan for the reorganization of FTX Digital and the distribution of assets to creditors. The collapse of FTX has raised concerns about the regulation of the cryptocurrency industry. Regulators are working to develop new rules to prevent similar events in the future.
