What should we pay attention to regarding the unfair restructuring plan as the deadline for FTX Bahamas claims is set to be extended?

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 to 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 be able to choose which claims process to join.

(Bahamas claims can be completed through FTX Digital before May 15th.)
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Bahamas claims deadline extended, creditors can choose where to file claims
What to watch out for in the unfair restructuring plan?

According to Sunil, a major FTX creditor, the original claims deadline for FTX Bahamas entity, which was originally set for May 15th, will be extended to June. 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 be able to choose which claims process to join.

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Previously, Sunil criticized what he believed to be an unfair restructuring plan, alleging that the liquidation team stole creditors’ money. He also pointed out that the restructuring plan included payment by check, and if the check is not cashed within 6 months, the right to claim will be lost. He believed that the plan should be voted against.

(FTX still has a 9% interest to claim, creditors with claims below $50,000 will receive 118% of the claimable amount within 60 days.)

(FTX major creditors dismiss 118% restructuring plan: liquidation team stole our money)

Another creditor, Arush, raised questions about the proposed plan:

– Need to pay 30% tax to the US government
– Need to pay capital gains tax to their own country’s government
– Will receive a check instead of stablecoin

If the creditor is an American or holds a green card, they will need to consider the high tax rate of 30% withheld by the US government. In addition, cashing the check will inevitably face taxation issues in Taiwan. The basic tax on capital gains in Taiwan for overseas income is exempt for amounts below 6.7 million, and 20% of the excess amount needs to be paid. These are the issues that high-amount creditors need to consider and face.

However, there is currently no information about FTX Bahamas entity paying with stablecoins. Based on the requirement on their website to provide the actual residential address of the creditor, it appears that the possibility of sending checks is higher. ChainNews will continue to track and update the latest information.

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FTX Bahamas entity
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