FTX Creditor Sunil Kavuri shared an email response from FTX Digital Markets Ltd. (FTX Bahamas entity) stating that the original claims deadline of May 15th will be extended until after June, and an official notice will be issued 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.
(Bahamas claims deadline extended, creditors can choose where to file claims)
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Bahamas claims deadline extended, creditors can choose where to file claims
What to pay attention to in the unfair restructuring plan?
According to Sunil, a major FTX creditor, the original claims deadline for FTX Bahamas entity, which was set for May 15th, will be extended until after June, and an official notice will be issued 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.
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Previously, Sunil criticized what he believed to be an unfair restructuring plan, claiming that the liquidation team had taken creditors’ money and that the restructuring plan intended to pay with checks. If the checks are not cashed within 6 months, the right to claim will be lost. He believes that a vote against the plan should be cast.
(FTX still offers 9% interest, creditors with claims below $50,000 will receive 118% of the claimable amount within 60 days)
(FTX major creditors disdain 118% restructuring plan: liquidation team stole our money)
Another creditor, Arush, also raised concerns about the proposed plan:
– 30% tax payment to the US government
– Capital gains tax payment to their own country’s government
– Receiving checks instead of stablecoins
If the creditor is a US citizen or holds a green card, they would have to consider the high tax rate of 30% imposed by the US government. In addition, cashing the checks will also raise tax issues in Taiwan. The basic tax rate for capital gains tax in Taiwan for overseas income is exempt for amounts below 6.7 million, with an additional 20% tax for amounts exceeding the exemption. These are the issues that large creditors need to consider and face.
However, currently there is no information regarding the possibility of FTX Bahamas entity paying in stablecoins. Based on the requirement on their website to provide the actual residential address of creditors, it seems more likely that checks will be sent. ChainNews will continue to track and update the latest information for readers.
FTX
FTX Bahamas entity
Further reading:
K33: FTX’s cash repayment may trigger buying demand, optimistic about the end-of-year cryptocurrency market trend
EP.183 FTX pays 118%, are you laughing or crying?