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Administrator KordaMentha set to request an extension due to the ‘complex situation’.
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FTX Australia creditors learn nothing from meeting
02 December 2022
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9 minute read
FTX Australia customers remain in the dark after the first creditors’ meeting in the voluntary administrations of FTX Australia Pty Ltd and FTX Express Pty Ltd was held today at 11am AEDT today.
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At the meeting, KordaMentha administrators John Mouawad, Scott Langdon, and Rahul Goyal confirmed their preliminary investigations into the two companies found that:
- FTX Australia Pty Ltd and FTX Express Pty Ltd do not hold any cryptocurrencies or operate any digital wallets.
- In accordance with the terms and conditions on FTX.com, all cryptocurrencies purchased by Australian customers appear to be held by FTX Trading Limited (a company not in voluntary administration and domiciled in Antigua and Barbuda).
- At this stage, FTX Trading Limited (not part of the Australian administration process) continues to investigate the existence and entitlement of crypto assets.
“This is a complex situation requiring careful and detailed analysis,” said administrator John Mouawad.
“While we appreciate this generates some uncertainty, we need to take the time to be as thorough as possible to work through all of the issues and drive the best outcome possible for customers and creditors.”
The administrators also confirmed that they would be applying to the court for an extension of time to convene the second creditors’ meeting and provide a substantive report to creditors.
The administrators advised they had formed a preliminary view on the interests of different FTX Australia Pty Ltd and FTX Express Pty Ltd customers in the administrations:
- Customers who transferred cryptocurrencies to FTX.com on chain (no fiat currency conversion) are unlikely to be creditors of FTX Express Pty Limited or FTX Australia Pty Limited but may be creditors of FTX Trading Limited.
- Customers who transferred fiat currency to FTX.com may be creditors of FTX Trading limited. Customers who requested withdrawals in fiat currency that were not fulfilled prior to appointment may be creditors of FTX Express Pty Limited.
- Customers who held open derivative positions at the time of the appointment may be a creditor of FTX Australia Pty Limited.
Mr Mouawad said that the administrators would continue to work with the US bankruptcy advisers to further investigate the existence or otherwise of the cryptocurrency assets relating to Australian customers that used both companies.
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