FTX Creditors Face Complex Bahamas Claim Process

Sunil Kavuri, a creditor representative for FTX, announced on July 19th 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, further complicating the process.

The complexity of this process is rooted in jurisdictional differences between The Bahamas and the United States, necessitating further regulatory approval and documentation. This development, attributed to the legal framework of The Bahamas, impacts creditor repayment timelines.

FTX Liquidators Manage Regulatory Challenges in Bahamas

FTX creditors have encountered notable procedural challenges in The Bahamas, particularly due to additional regulatory requirements influenced by UK/EU legal standards. Sunil Kavuri, a creditor representative, highlighted the disparity compared to the U.S. procedures, emphasizing the regulatory nuances needed for claims processing. The liquidators, led by PricewaterhouseCoopers (PwC) and Brian Simms KC, continue to manage the claims process as they negotiate the regulatory landscape.

These additional steps involve extensive Know Your Customer (KYC) obligations, leading to delays in claim payouts. As of late June 2025, around $290 million in approved claims remain unpaid, primarily due to incomplete KYC documentation. This has added to creditor frustrations over extended timelines and increased procedural hurdles.

“The Bahamas claims process necessitates extra documentation and regulatory steps, aligning with the UK/EU legal framework.” — Sunil Kavuri, representing FTX creditors.

Industry Observes Impact of Heightened Bahamian Regulations

Did you know? Historically, international crypto claim processes, like those of Mt. Gox and Celsius, endured similar delays and complexities, often burdened by additional regulatory compliance and documentation requirements before creditor payouts were approved.

Ethereum (ETH) remains a dominant force in the market, priced at $3,579.64 with a market cap of $432.11 billion, accounting for 11.23% of the crypto market. Despite a decline in 24-hour trading volume, Ethereum has seen significant gains over recent months [Source: CoinMarketCap].

The Coincu research team observes that The Bahamas’ regulatory framework is shaping creditor experiences. Historically, strict frameworks result in orderly processes but extended timelines. Analysts anticipate that this heightened regulation could lead to increased payout confirmations once requisite approvals are secured.