FTX New Management Announces Crucial Deadline for Creditor Claims

In a new turn of events, the defunct crypto exchange platform FTX earmarked September 29, 2023, at exactly 4 PM ET as the final deadline for creditors registering their proofs of claims through the designated portal.

This strategizing maneuver forms part of FTX’s blueprint to streamline the claims process and ensure that all stakeholders have ample time to submit their proofs of claims.

FTX Proof of Claims Deadline

The freshly unveiled tweet from FTX nudges all investors yet to start the claims process to simply do so through the FTX Customer Claims Portal by the Bar Date. The exchange urges claimants to promptly verify their account balances as of November 11, 2022, the crucial date when its bankruptcy was revealed, with only seven days remaining.

The deadline to file a proof of claim is 09/29/2023 4PM ET (“Bar Date”). Please begin the claims process through the FTX Customer Claims Portal (https://t.co/DkYi2hDLbI) if you have not done so already.

— FTX (@FTX_Official) September 21, 2023

According to FTX’s portal page, users can now file customer claims, claim for multiple accounts, claim on behalf of another person, or even obtain a unique customer code. For instance, investors holding multiple accounts are obliged to file separate proofs of claim for each account.

The claims portal requires details like usernames and passwords used when creating the accounts.

In a follow-up tweet, FTX clarified that claimants can begin the Know Your Customer (KYC) process, although having a verified KYC status is not mandatory for submitting a claim. They underscored that while the deadline for lodging proofs of claim is Sept. 29, the KYC scrutiny and validation process would roll on past this cut-off date.

KYC verification will require details like a government-issued identification document and, for businesses, a tax identification number.

Recently, FTX sounded an alarm over security associated with its claims portal. As per reports, there was a security lapse that exposed some non-sensitive customer data of targeted claimants without affecting their passwords, according to FTX.

Doubts Rising Over Claim Settlement?

As this saga continues, other crypto investors express doubts over whether FTX will really settle the claims speedily. A user called @Grindingpoet said: “Mt Gox claims still not settled in a decade, and you think your FTX Claims will settle in 10 months?”

However, owing to FTX’s plans for a reboot of the exchange, some believe the defunct exchange will first settle with customers to earn back trust.

Earlier this month, reports indicated that more than 36,000 customers submitted claims totaling approximately $16 billion against FTX and FTX U.S. According to reports, around 10% of the claims have already been settled.

As FTX’s saga continues, Sam Bankman-Fried’s parents have been in the limelight as they try to fight new accusations lodged against them by the exchange’s new management. This suit has been termed as a “dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins.”