The FTX bankruptcy involves two separate processes, both a Chapter 11 bankruptcy supervised by the Delaware court in the United States and the formal liquidation of Bahamas-based FTX Digital.
Both parties have agreed to cooperate to protect the rights of creditors and ensure that the process is conducted fairly. The agreement allows creditors to present their claims to both parties and guarantees that no creditor will receive less than the value to which they are entitled.
According to the March 15 meeting notes, both the Chapter 11 Debtors and the Joint Official Liquidators aim to make the first interim distribution to creditors with accepted claims and satisfactory Know Your Customer (KYC) documentation by the end of 2024.
Creditors Presenting Claims
In the bankruptcy process of cryptocurrency exchange FTX, creditors have been able to submit their claims through the company's private claims portal since March 1.
The original deadline for choosing one of the two bankruptcy processes and filing a claim was announced as May 15. However, according to recent developments, this deadline is expected to be extended until June 2024.
Claims in the Chapter 11 process, as well as Bahamian claims, will be evaluated from November 11, 2022, when the first bankruptcy claim was filed.
The surge in the artificial intelligence sector, driven in particular by the popularity of ChatGPT, has led to Anthropic's share price doubling.
SBF Sentenced to 25 Years in Prison
Nearly five months after the collapse of cryptocurrency exchange FTX, founder Sam Bankman-Fried pleaded guilty to seven charges and was sentenced to 25 years in prison. The Department of Justice (DOJ) had sought a substantial prison sentence of 40 to 50 years for Bankman-Fried, emphasizing the devastating consequences of FTX's collapse.
Judge Lewis Kaplan of the Southern District of New York (SDNY) criticized Bankman-Fried's behavior, saying, "When he wasn't lying, he was evasive, he was elusive, and he was diligent in trying to get prosecutors to re-ask him questions," and that he had never seen this kind of behavior in his 30-year career.
While there is no possibility of parole in federal criminal cases, Bankman-Fried has a chance to commute his 25-year sentence for good behavior. "Bankman-Fried could serve as little as 12.5 years if he takes the full prison credit offered to him," former federal prosecutor Mitchell Epner told CNN.
FTX last week agreed to sell the majority of its stake in artificial intelligence startup Anthropic for $884 million to pay its creditors. FTX and its sister company Alameda invested $500 million in Anthropic in 2021, giving it a 7.84% stake in the company.
