FTX Express Creditor Claims

FTX Express Pty Ltd unsecured creditor claims

ClaimCloud is now a creditor of FTX Express Pty Ltd (In Liquidation), having recently bought a creditor claim from an Australian customer of FTX.

FTX Express Pty Ltd was one of two Australian subsidiaries of the FTX Group, the operator of a cryptocurrency exchange platform that was founded by Sam Bankman-Fried in 2019 before collapsing in Nov 2022.

A team from KordaMentha was appointed administrators of FTX Express Pty Ltd on 11 Nov, 2022.  A major piece of their work was determining which Australian customers on the FTX trading platform were unsecured creditors of FTX Australia Pty Ltd, and which customers were instead creditors of FTX Trading Limited (headquartered in the Bahamas), the head entity of the FTX Group.

It was determined in Feb 2024, after a lengthy judicial directions application process, that the only creditors of FTX Express Pty were customers with “an AUD Pending Withdrawal”*.  This covered 747 customers who were owed $29m.  This meant that the majority of Australian FTX customers became creditors of FTX Trading Limited, which was being administered by the United States Bankruptcy Court.

FTX Express Pty Ltd had an estimated $38m of cash available to pay the $29m of FTX Express Pty Ltd unsecured creditors (plus 8% per annum interest).  It is therefore expected that unsecured creditors will receive their claim amounts in full, plus interest, around Jun 2024.

This is a good outcome for those FTX customers that were lucky enough to be classed FTX Express Pty Ltd unsecured creditors, but these customers have still had to wait more than 18 months for their return.  The other customers that are FTX Trading Limited customers are uncertain of the date of their recoveries.

Here at ClaimCloud, we try to bring to light the time involved in achieving any recovery as an unsecured creditor to an insolvent company.  It is the second major source of uncertainty, alongside the unknown amount of any recovery.  ClaimCloud aims to offer an option for creditors to remove the uncertainty.

Any information provided by ClaimCloud is not intended to constitute any financial or investment advice. Before you consider selling any claim you have to ClaimCloud, you should consider obtaining financial, tax and investment advice that takes into account your financial circumstances, objectives and needs. You should also consider any information from or published by the company you have a creditor claim with or any appointed administrators or liquidators that may impact your creditor claim.

+61 484 637 711 +1 808 465 5608 mitch@clmcld.com 

* Defined as “those customers that had requested, prior to the Appointment Date, a withdrawal of AUD from their account on the FTX.com platform, which request had not been fulfilled as at the Appointment Date.”