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FTX Crypto Claim Deadline: September 29 Cut Off For Lost Funds Recovery

Published September 22, 2023 10:35 AM
Teuta Franjkovic
Published September 22, 2023 10:35 AM

Key Takeaways

  • Former FTX users can reclaim assets through a bankruptcy claim by September 29, 2023.
  • FTX’s claims process may need users to provide income tax return data.
  • Users question FTX’s need for extra financial data and suspect a phishing scam.

FTX, the cryptocurrency exchange declared bankruptcy in November 2022, is leading to withdrawal restrictions for account holders. Now, affected investors have a brief window to reclaim some of their assets via a quick bankruptcy claim.

Investors who lost money in FTX’s bankruptcy have until September 29, 2023, to submit a claim for that money , according to a June 29 decision by the US Bankruptcy Court of Delaware.

Claimants are now able to make new submissions for assets they owned on the exchange before it went bankrupt.

What Is the Process For Filing a Customer Claim?

There are a number of steps  on the FTX claims portal in order to file claim. Users must first choose the FTX-affiliated platform that hosted their account.

Seven primary platforms are available:

  • FTX.com
  • FTX.us
  • FTX EU
  • FTX JP
  • Blockfolio – FTX.com
  • Blockfolio – FTX.us
  • Liquid

To access the FTX customer claims site, users must employ multifactor authentication along with their FTX account credentials.

Users can still submit a claim to Kroll Restructuring Administration (the financial institution handling the FTX claims), using this form, even if they don’t have access to their FTX account.

Customers must reply to a verification email after logging in with your FTX credentials in order to prove their identity and access their account.

Users will begin by inputting their Know Your Customer (KYC) information, typically including a government-issued ID and proof of address like bank statements or tax records.

Once they’ve confirmed and logged in to the FTX claims portal, to share their session with the Kroll Restructuring Administration, users should click the “File Proof of Claim” option.

If users agree with the displayed account balances, they can complete the process. However, if they disagree with the amounts shown, they should click “File Proof of Claim” again on the Kroll website to provide additional details and supporting evidence.

Claim Portal Back Online Hours After a Security Incident

After being shut down owing to a cyberattack, the bankrupt cryptocurrency exchange FTX has finally restarted  its customer claims portal with tighter security measures.

According to the claims , the breach revealed non-sensitive consumer data. FTX has guaranteed that funds and account credentials were unaffected.

People who had accounts with FTX, FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid can access the claims portal specifically.

10% of the 36,075 customer claims totaling $16 billion that have been made against FTX and FTX US have been resolved.

FTX reported 2,300 non-customer claims, totaling $65 billion, including claims from companies like Genesis, Celsius, and Voyager.

It froze these accounts as a precaution and has since implemented additional security measures. This follows multiple recent reports of problems with the claims portal.

On August 27, FTX announced a temporary account suspension  for those impacted users who had accessed its claims portal following the initial discovery of the cybersecurity assault on Kroll.

Users could still send in or submit a proof-of-claim online through Kroll’s customer form.

Portal Offline for Unclear Reasons

On July 11, the consumer claims portal was made available, but it was taken offline  for an unclear reason after just one hour.

In related news, the United States Bankruptcy Court for the District of Delaware approved the sale of FTX’s digital assets.

On September 13, Judge John Dorsey issued a decision allowing FTX to sell off assets through an investment adviser in weekly batches, subject to stringent guidelines. The cap will be $50 million for the first week, rising to $100 million the following two.

However, FTX is not permitted to sell its Bitcoin, Ether and “certain insider-affiliated tokens“  at this time.

Following a 10-day notification to the committees and the U.S. trustee, FTX must make a separate decision about any potential sales of these assets.

Community Call it a Potential Phishing Scam

However, people are getting suspicious. It seems FTX is demanding other informations from its clients such as income tax return data (ITR) or payslips from the previous six months in order to process their claim.

According to  one user, FTX already has his basic KYC information, so it isn’t clear how his current salary information affect these claims.

Other users are certain that this is phishing scam.

Many months after the exchange closed, FTX clients are still experiencing problems that prevent millions of users from accessing the billions of dollars still present on the disgraced exchange.

In August, just a week after Kroll, the claims agent in the bankruptcy proceedings, was impacted  by a SIM swapping assault, some former users were again targeted by a fresh phishing attempt  on their FTX-registered emails. Attack brought to expose customers’ private information, including account balances, phone numbers, and addresses.

It’s not strange, therefore, the users are now panicking:

The date on which the court-ordered bankruptcy proceedings for FTX will end is still unknown. FTX creditors have recently grown concerned about the bankruptcy’s rising costs, which are now up to $328 million.

FTX lawyer Brian Glueckstein stated in court that he anticipates the resolution of bankruptcy case for FTX in the second quarter of 2024, or between April and June.

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