FTX creditors submitting claims in the Bahamas are facing additional requirements that complicate the payout process.
Challenges in the Claims Process
On July 19, creditor representative Sunil Kavuri announced that creditors filing claims in the Bahamas must follow additional steps. This necessity arises from the region's adherence to the UK/EU legal system, complicating the process, particularly compared to the U.S.
Regulatory Challenges for FTX Liquidators
FTX creditors have encountered notable procedural challenges in the Bahamas, particularly due to additional regulatory requirements influenced by UK/EU legal standards. Liquidators led by PricewaterhouseCoopers (PwC) continue to manage the claims process while navigating the regulatory landscape. Delays in payouts are attributed to extensive Know Your Customer (KYC) obligations, with around $290 million in approved claims remaining unpaid.
Impact of Strict Regulations on Payouts
Historically, international crypto claim processes, like those of Mt. Gox and Celsius, have experienced similar delays and complexities often burdened by heightened regulatory compliance and documentation requirements. Analysts anticipate that the heightened regulations in the Bahamas could lead to a more orderly process but extended timelines for payout confirmations.
FTX creditors in the Bahamas face new challenges in the claims process, highlighting the significance of future changes in the regulatory landscape.
