News

How to make a claim in the FTX Bankruptcy – Chance to get your funds back?

Do you know that FTX bankruptcy claims deadline nears? FTX users only have a couple of days to submit bankruptcy claims. Here we’ll explain all about filing a customer claim.

FTX bankruptcy

Have you lost your money on FTX? We know it’s an extremely painful event for all of us. You are not alone. There are more than a million of possible victims. Some even had significant amounts of money when crypto exchange FTX went bankrupt.

For those who are new to this space; FTX – One of the largest cryptocurrency exchange that had more than a million users declared bankruptcy in November 2022. This shook the entire crypto industry and caused a widespread market downturn. All of the investors and traders funds were frozen and they were unable to withdraw it. According to the FTX bankruptcy team estimation, the exchange owes about $8.7 Billion to its customers.

All of the users who held assets and lost money to the bankrupt crypto exchange FTX now have a chance to get their money back. Atleast you can expect to recover some of your money back. All you have to do is provide proof of the assets that you held on the exchange and you need to submit an electronic proof of claim in the FTX Chapter 11 proceedings.

Note: You only got until 29th of September 2023 to submit bankruptcy claims.

So how to file a claim against FTX?

FTX customer claim notice

As a former FTX user you might have received an email from FTX noticing you about the customer claims bar date which is set for 29th of September, 2023. It also contains a link to the FTX customer claims portal which allows users to submit bankruptcy claims for assets they held on the platform before it went bankrupt that is as of November 11, 2022.

Here it is:

NOTICE TO ALL FTX CUSTOMERS: SEPTEMBER 29, 2023 IS THE DEADLINE TO FILE PROOFS OF CLAIM ON ACCOUNT OF CUSTOMER CLAIMS AGAINST THE FTX DEBTORS.

YOU ARE RECEIVING THIS EMAIL BECAUSE YOU HAVE BEEN IDENTIFIED AS A CUSTOMER WITH A NET POSITIVE ACCOUNT BALANCE AS OF NOVEMBER 11, 2022 OF ONE OR MORE OF THE DEBTORS IN THE CHAPTER 11 CASES OF FTX TRADING LTD.

We would like to remind you that the FTX Customer Claims Bar Date is September 29, 2023, 4 PM United States Eastern Time (“Bar Date”). The Bar Date is the deadline to file proofs of claim, against the FTX Debtors, on account of Customer Claims. We recommend all customers with a customer claim to begin the claim process by logging in to the Customer Claims Portal at https://claims.ftx.com. If you have already filed a proof of claim and do not have any changes, then there is no need to file another claim.

You are encouraged to submit proof of claim forms electronically using the Customer Claims Portal that has been established at https://claims.ftx.com/. Receiving this notice does not mean that you have a claim or that the FTX Debtors believes that you have a claim – all FTX customers with emails on file are receiving this notice.

You are encouraged to submit your proof of claim form electronically through the Customer Claims Portal. However, you can also submit proofs of claim by hand delivery or by mail to the applicable address listed below.

If by first class mail:

FTX Trading Ltd. Claims Processing Center

c/o Kroll Restructuring Administration LLC

Grand Central Station, PO Box 4850

New York, NY 10163-4850

If by hand delivery, or overnight courier:

FTX Trading Ltd. Claims Processing Center

c/o Kroll Restructuring Administration LLC

850 3rd Avenue, Suite 412

Brooklyn, NY 11232

Chapter 11 Bankruptcy

On June 28, 2023, the United States Bankruptcy Court for the District of Delaware entered an order [D.I. 1793] (the “Bar Date Order”) in the chapter 11 cases of FTX Trading Ltd. and certain of its affiliated debtors and debtors-in-possession (collectively, the “Debtors”) establishing September 29, 2023 at 4:00 p.m., Eastern Time as the deadline for each person or entity (including individuals, partnerships, corporations, joint ventures and trusts) holding a Customer Claim (as defined below) to file a proof of claim in these Chapter 11 Cases (the “Customer Bar Date”). All proofs of claim must be filed so as to be actually received on or before the applicable Customer Bar Date.

As a former customer of FTX trading firm you have until Sept 29 to submit proof of claim on the chapter 11 restructuring plan. You can read more about it here: https://storage.courtlistener.com/recap/gov.uscourts.deb.188450/gov.uscourts.deb.188450.1793.0.pdf

What customer claim means?

Customer Claim means any claim of any kind or nature whatsoever held by any person or entity against any of the Debtors, in each case, arising out of or related to (a) any cash, cryptocurrency, digital assets or other assets held by such person or entity in an account on any FTX Exchange as of the Petition Date or (b) any other investment or trading activities on any FTX Exchange. “FTX Exchange” means FTX.com, FTX.US, FTX Trading Ltd. (d/b/a “FTX”), West Realm Shires Services Inc. (d/b/a “FTX US”), FTX EU Ltd. (f/k/a K-DNA Financial Services Ltd., d/b/a “FTX EU”), Quoine Pte Ltd. (d/b/a “Liquid Global”), and FTX Japan or Liquid platforms operated by FTX Japan K.K. (“FTX Japan”) or any other exchange or trading platform operated by any Debtor.

What is a Proof of Claim?

To get involved in the repayment process you need to file a “proof of claim”. It is an essential element in the bankruptcy process. The proof of claim form documents the amount / assets to that the debtor has to repay to to the creditor. As per bankruptcy court FTX is the “debtor” that owes debts. If you had money with FTX then you become “creditor”.

The Debtors (FTX and co) have created the customer claims portal to help you file a proof of claim. It specifies the type of asset (in fiat, cryptocurrency or NFT) that you had in the exchange. It accurately describes the nature and the amount of debt it owes you denominated in U.S. As a claimant all you have to do is verify and accept the information listed. If there are some inaccuracies you can also dispute it by submitting proper proof.

If you’ve missed the email containing instructions for submitting customer proofs of claim then please follow the guide below. The whole process is quick and easy.

How to submit proof of claim?

To make a customer claim in the FTX bankruptcy please visit https://claims.ftx.com/ and follow the steps described in the portal. This portal is made for traders / investors who lost money in FTX’s bankruptcy to file a claim for that money. The FTX Customer Claims Portal enables you to access your FTX account information, obtain historical information and, submit an electronic proof of claim in the FTX Chapter 11 proceedings.

Note: The deadline for filing a proof of claim is September 29, 2023, 4pm ET.

The FTX claims portal has a 5 step process that you must complete to submit your claim. The steps are as follows:

1. Choose your platform and Login to the customer claims portal

First you need to select the platform where you had account. There are seven platforms to choose from namely FTX.com, FTX.us, Blockfolio – FTX.com, Blockfolio – FTX.us, FTX EU, FTX JP and Liquid. Please select the applicable platform. For example if you had account at FTX.com then choose FTX.com and click get started.

ftx customer claims portal

Login to customer claims portal

Use your FTX login credentials to login to the portal. Enter Email address, password and click login. If your account had multi-factor authentication enabled then you’ll also be asked to enter a 6-digit verification code from your Google Authenticator or Authy app. Enter the code and it’ll automatically initiate account owner authentication.

login ftx claim portal

Note: If you’re not able to login to the customer claims portal using your FTX credentials then you can directly file a claim using this form here: https://ftx-forms.ra.kroll.com/efiling/fr/410/customer-claim-form/new (refer to step 5)

2. Verify your email address

The next step is to Verify your email which is Required at Every Login.

Click the ‘Confirm Email’ button below to send an email to the address on file. Then check your email and click the link provided in your email. Once you complete this, you will see your Email Confirmation Status as ‘Complete’ above.

ftx portal confirm email

The email confirmation link will expire within 5 minutes. Click the link in the confirmation email that was sent to you to complete account verification.

3. KYC

Whether you’ve provided KYC on FTX or not, in order to submit proof of claim all customers are required to submit KYC before filing a claim.

Please note that the FTX Debtors have requested KYC information as part of the customer claim process. As such, we urge you to begin the Know Your Customer (“KYC”) process. However note that this is NOT mandatory for you to have a verified KYC status in order to submit a claim. If you wish to submit a customer claim, you may do so during your KYC process prior to the Bar Date. Additionally, you do not need to have your KYC process completed and verified by the Bar Date. The KYC review and verification process will continue even after the Bar Date.

claim kyc process

Click Begin KYC process and start providing your information to verify your identity further. This will take you to an external third party website where you’ll be asked to submit your government issued ID card, address proof, take a selfie and other documents such as tax documentation or your latest bank statements.

id card kyc file claim

ftx portal kyc check

Some users are reporting that they are facing issues in the KYC process. As we said it is only necessary to begin the KYC process. It is not mandatory for you to have a verified KYC status in order to file a claim. Whether this KYC step is verified, unverified or being processed. At any point you you can move to Step 4 to review your account balance, and to Step 5 to submit your electronic proof of claim.

4. Review account balance

Step 4 shows your complete FTX portfolio. Here you can view total account balance you had on FTX as of November 11, 2022 at approximately 10:00am ET.

bankrupt ftx account balance

You can view all the coins, tokens, NFTs, deposits, withdrawals and all historical activity of your account until Nov 11, 2022.

Once you’ve reviewed your account balance you can move on to step 5 to file your claim.

5. Submission of electronic proof of claim

Once you’ve verified your account balances you need to confirm that the numbers are correct. To do so click “File proof of claim” on step 5. This will take you to Kroll Restructuring Administration platform to confirm your balances as of the Petition Date, and, if necessary, submit an electronic proof of claim.

file proof of claim

Read the form thoroughly and click agree or disagree one by one. This is basically confirmation of balances.

If you found any discrepancy when reviewing your account balance you can also dispute the claim and provide your own proof on the Kroll website. In this case you’ll need to provide more information and documentation to support your claim.

That’s it! Once this step is done you’re finished.

Once you’re finished with this step you’ll see this message.

form submitted chapter11

Form Submitted

Thank you for your submission. If you have submitted an Electronic Proof of Claim, you will receive a PDF copy of your claim filing (along with any supporting documentation you may have included, as a separate attachment) and your Confirmation ID from “noreply.efiling@ra.kroll.com” to the email address used to access the electronic filing platform. Please add this email to your allowed senders list. In the coming weeks, you will be able to review your claim on https://restructuring.ra.kroll.com/ftx/Home-ClaimInfo using your Confirmation ID. If you have agreed to the listing of your Claim in the Debtors’ Schedules, you will receive your Confirmation ID from “noreply.efiling@ra.kroll.com” to the email address used to access the electronic filing platform. Please add this email to your allowed senders list. In the coming weeks, you will be able to review your claim on https://restructuring.ra.kroll.com/ftx/Home-ClaimInfo using your Confirmation ID. You may now close this browser tab.

That’s it! Now all you have to do is wait for the team to verify your document.

To learn more about the customer claim process and if you are stuck at KYC process then please visit the FTX support website at https://support.ftx.com.

FAQ:

When is the last date to file my Proof of Claim against FTX?

The bar date is the last date that creditors (you) are allowed to file their Proof of Claim against a Debtor (FTX) in a bankruptcy case. The deadline for filing a proof of claim is September 29, 2023, 4pm ET. To be accepted by the bankruptcy court you need to submit your proof of claim before this time-frame. Your proof of claim form will be rejected if you file it after the bar date.

For your claim to be considered just make sure you’ve submitted the claim and is received by Kroll Restructuring Administration before Sept. 29, 2023 by 4 p.m. ET.

What happens after successfully submitting proof of claim?

Once you have successfully filed a Proof of Claim you’ll receive a email receipt from noreply.efiling@ra.kroll.com. It states that you have completed your submission of Acceptance of Scheduled Claim number xxxxxx. Please see the attached documentation to review your submission that you filed electronically. Please do not send a duplicate of this submission by any other method of return.

What’s next? When will I get my Money back?

No one knows what happens next and when the legal proceedings of FTX chapter 11 bankruptcy case will settle. Its all complex from here and it might take years for the claim payouts to be ultimately distributed

By submitting a valid Proof of Claim to the court, you can be rest assured that your bankruptcy claim against FTX is accurately represented in the case, and that you have a legal right of recourse against FTX.

Show More

coinguides

We are crypto enthusiasts and our main intention with Coin Guides is to educate people about Cryptocurrency and Blockchain technology. We regularly publish content about Bitcoin, Ethereum, Altcoins, wallet guides, mining tutorials and trading tips.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button