- FTX creditors must complete KYC, tax forms, and agent selection by January 20, 2025.
- Missing pre-distribution deadlines risks delayed payments or forfeiture of claim rights.
- Confusion over jurisdictional deadlines adds stress for Bahamas-linked FTX creditors.
The clock is ticking for FTX creditors as the January 20, 2025 claims deadline approaches. A complex claims process, including KYC verification and tax submissions, has left many struggling to meet the requirements. Missing these deadlines could result in delayed payouts or even the loss of claims, adding to creditors’ anxieties.
What Creditors Need to Do
To receive an initial payment, FTX creditors must complete several steps. These include identity verification (KYC), submitting tax forms, and choosing how they want to receive their funds. The deadline for most creditors is January 20, 2025, especially for those with claims under $50,000.
Meeting these requirements by the cutoff dates is critical. The first record date was January 3, 2025, by which KYC verification was required. Many creditors, particularly those involved in the Bahamas process, have reported difficulties meeting these requirements due to administrative hold-ups.
The Risk of Missing the Deadline
Those who don’t meet the January 20, 2025 deadline will miss the first round of payments. FTX has stated that latecomers will still receive payments later, but there’s a catch.
Read also : FTX Creditors Must Act Now to Receive Initial Distribution
According to section 7.8 of the Plan, creditors failing to fulfill pre-distribution requirements within six months of the initial distribution date risk losing their right to any distributions.
This stipulation has added pressure on creditors to act swiftly. Moreover, the lack of clarity regarding jurisdictional distinctions between the US and Bahamas processes has created additional confusion. While the January deadlines appear focused on the US process, creditors linked to the Bahamas are uncertain whether these deadlines apply to them.
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