Bahamas Claims Approved, US Hearing Underway

A breakthrough for FTX creditors has emerged this week, as multiple claimants were officially verified under the separate Bahamas legal process, marking a long-awaited step forward.

Creditor representative Sunil Kavuri confirmed the development on July 22, stating that those verified will be included in future distributions.

The slow but steady progress in the Bahamas

The process in The Bahamas has been burdensome due to the region’s adherence to UK/EU-style regulatory frameworks. Additional Know Your Customer (KYC) procedures have slowed claim approvals, leaving an estimated $290 million in validated claims unpaid as of late June.

The joint liquidators, PricewaterhouseCoopers (PwC) and Bahamian King’s Counsel Brian Simms, continue to manage the case under these regulatory constraints.

Creation of a Robust Payments Framework

Past crypto collapses like Mt. Gox and Celsius also involved similarly protracted international claim efforts. While these stringent rules slow disbursements, they are expected to create a more robust payout framework once regulatory hurdles are overcome.

Related: Does FTX Still Have a Future — And What About FTT Token?

Adding to the legal mess, a settlement between FTX’s Bahamas unit and Celsius Network has resolved a dispute over clawback claims. Such resolutions are essential for unlocking creditor payouts and enabling equitable asset distribution.

US Bankruptcy Court Hearing Underway

Coinciding with the news, today’s omnibus hearing for the FTX bankruptcy case is being held at 9:30 a.m. ET in the United States Bankruptcy Court for the District of Delaware.

According to an official court document signed by Chief Judge Karen B. Owens, this is the first of three scheduled omnibus hearings, with additional dates set for August 12 and September 11.

Related: Chinese Creditors Challenge $1.4B Exclusion from FTX Bankruptcy Claims

A key agenda item is the proposed “Restricted Jurisdiction Procedure”, which would affect creditors residing in any of the 49 restricted countries, including China.

If approved, FTX will be permitted to seek legal opinions on whether payouts can legally be made to these jurisdictions. Based on those findings, certain residents may be excluded from future distributions.