**Understanding FTX Digital’s Joint Provisional Liquidation**

On April 21st, PwC’s official website reported that PwC, on behalf of FTX Digital (a Bahamian entity), has issued an email to users advising them to register to ensure that the joint provisional liquidator has current contact information, send updates on the provisional liquidation status, obtain copies of progress reports, attend meetings, and submit claims in fiat or cryptocurrency as needed. The temporary liquidation procedure of FTX Digital is independent of the ongoing US Chapter 11 procedure, but parallel to it. FTX.com customers who have submitted claims to entities covered by Chapter 11 procedures in the United States will not be prevented from registering their detailed information through the FTX Digital claims portal.

The temporary liquidation procedure of FTX Digital is independent of the ongoing Chapter 11 procedures in the United States

**Introduction**

On April 21st, 2021, PwC’s official website reported that FTX Digital, a Bahamian entity, had gone into joint provisional liquidation and was advising customers to register to ensure that they receive updates on the status of the liquidation, attend meetings, and submit claims. In this article, we will explore what joint provisional liquidation is, its implications for FTX Digital, and what customers need to do.

**Table of Contents**

– What is Joint Provisional Liquidation?
– Why did FTX Digital go into Joint Provisional Liquidation?
– What are the Implications of Joint Provisional Liquidation for FTX Digital?
– What do FTX.com Customers Need to do?
– Submitting Claims in Fiat or Cryptocurrency
– How does Joint Provisional Liquidation relate to Chapter 11 Proceedings in the United States?
– What Happens Next?
– Conclusion
– FAQs

**What is Joint Provisional Liquidation?**

Joint provisional liquidation is a legal mechanism used in international insolvency cases. It involves the appointment of a joint provisional liquidator who works with an existing management team to preserve the value of the company’s assets. The liquidator’s role is to ensure that the company continues to operate smoothly while the liquidation process takes place.

**Why did FTX Digital go into Joint Provisional Liquidation?**

There are several potential reasons why FTX Digital went into joint provisional liquidation. According to a statement released on April 20th, 2021, the company was facing “liquidity issues” that led to a “shortage of cash.” This statement also explained that the joint provisional liquidation proceedings were initiated to allow FTX Digital to “unlock” its assets.

**What are the Implications of Joint Provisional Liquidation for FTX Digital?**

Joint provisional liquidation should help FTX Digital preserve the value of its assets and ensure that it can continue to operate during the liquidation process. However, the liquidator will have a significant amount of control over the company’s affairs, and management will need to work closely with them to make decisions.

**What do FTX.com Customers Need to do?**

Customers who have accounts on FTX.com need to ensure that their contact information is up to date and register on the FTX Digital claims portal. This will provide the joint provisional liquidator with their current contact information, so they can receive updates on the status of the liquidation, attend meetings, and submit claims.

**Submitting Claims in Fiat or Cryptocurrency**

Customers who have claims against FTX Digital can submit these claims in fiat or cryptocurrency. The claims portal will accept both types of currency and will enable customers to submit detailed information about their claims.

**How does Joint Provisional Liquidation relate to Chapter 11 Proceedings in the United States?**

The joint provisional liquidation proceedings are independent of the ongoing Chapter 11 proceedings in the United States, but they are happening in parallel. FTX.com customers who have submitted claims to entities covered by Chapter 11 proceedings in the United States will still need to register their information through the FTX Digital claims portal.

**What Happens Next?**

It is unclear what will happen next for FTX Digital. However, the joint provisional liquidation proceedings should provide some clarity on the company’s financial position and the options available to it. Customers can expect to receive updates through the claims portal on the progress of the liquidation.

**Conclusion**

FTX Digital’s joint provisional liquidation may be a concerning development for its customers, but joint provisional liquidation is a legal mechanism used to preserve the value of a company’s assets while the liquidation process is ongoing. Customers who have accounts on FTX.com need to ensure that their contact information is up to date and register on the FTX Digital claims portal to receive updates on the status of the liquidation, attend meetings, and submit claims.

**FAQs**

**Q1. Can customers submit claims if they do not have an account with FTX.com?**
A1. No. Customers need to have an account on FTX.com to submit claims through the FTX Digital claims portal.
**Q2. Can FTX Digital’s joint provisional liquidation be reversed?**
A2. It is unlikely that the joint provisional liquidation will be reversed. However, there may still be options available to FTX Digital.
**Q3. What happens if a customer’s claim is mostly in cryptocurrency, but they do not have enough fiat to pay the registration fee?**
A3. Customers who do not have enough fiat to pay the registration fee can still register and submit their claim in cryptocurrency.

**Keywords**

FTX Digital, Joint Provisional Liquidation, Cryptocurrency.