If You Lost Money When Crypto Exchange FTX Went Bankrupt, You Have a Few Weeks Left to Make a Claim
Investors whose funds were frozen when FTX went bankrupt can now file claims to recover that money.
When the crypto exchange FTX declared bankruptcy in November 2022, investors with money in their FTX accounts found themselves unable to withdraw it. Those investors now have a chance to get some of their funds back, but they'll need to file a bankruptcy claim in the next few weeks.
At its peak, FTX had more than a million users and was the third-biggest cryptocurrency exchange in the world. Its declaration of bankruptcy shook the crypto community, which was further shocked when co-founder Sam Bankman-Fried was arrested for fraud and campaign finance violations.
In a June 29 ruling by the US Bankruptcy Court of Delaware, the court established a deadline of Sept. 29, 2023 for investors who lost money in FTX's bankruptcy to file a claim for that money. The FTX bankruptcy team estimates that the crypto exchange owes about $8.7 billion to customers.
We'll explain everything you need to know to make an FTX bankruptcy claim, even if you don't have access to the FTX account that lost the money. For more on your finances, here's how to see if your state is holding money you can claim and how much Social Security benefits could increase in 2024.
How do I make a customer claim in the FTX bankruptcy?
If you lost funds to FTX when it declared bankruptcy, you are eligible to file a customer claim. The easiest way to file a claim is by using the online portal that FTX and its debtors have established at claims.ftx.com.
The FTX claims portal has a multistep process that you must complete to submit your claim.
First, you'll need to select the FTX-related platform that hosted your account. There are seven main platforms:
- FTX.com
- FTX.us
- Blockfolio - FTX.com
- Blockfolio - FTX.us
- FTX EU
- FTX JP
- Liquid
Next, you'll need to log in to the FTX customer claims portal using your FTX account credentials and multifactor authentication.
If you don't have access to your FTX account, you can still file a claim with Kroll Restructuring Administration (the financial firm facilitating the FTX claims) using this form here.
After logging in with your FTX credentials, you'll need to respond to a verification email to confirm your identity and gain account access.
Next, you'll provide your Know Your Customer information to verify your identity further. This info generally includes a government-issued ID and proof of address. KYC requirements can also include bank statements or tax documentation.
If you review your account balances and find a discrepancy, you'll need to provide proof on the Kroll site.
Once you are verified and logged in to the FTX claims portal, you'll review your account balances as of Nov. 12, 2022, at 10 a.m. ET to confirm that the amounts are correct. Click the File Proof of Claim button next to share your session with the Kroll Restructuring Administration.
If you agree with the account balances presented, you're finished. If you disagree with the amounts shown, you'll need to click the File Proof of Claim button again on the Kroll site to provide more information and documentation to support your claim.
When does my FTX customer claim need to be submitted?
For your claim to be considered, it must be "actually received" by Kroll Restructuring Administration by 4 p.m. ET on Sept. 29, 2023. The press release announcing the FTX claims portal urges customers to file claims online and says that "there may be a processing delay for any claims that are submitted by mail."
According to the Official Committee of Unsecured Creditors of FTX, the timing of your claim will not impact its chance of being paid. All claims that are submitted by the Sept. 29 deadline will be treated equally.
When will the FTX bankruptcy case be settled?
It's currently unknown exactly when the FTX bankruptcy proceedings will wrap up in court. FTX creditors have grown nervous lately about the growing costs of the bankruptcy -- currently up to $328 million, per the New York Times.
Reuters recently reported that FTX attorney Brian Glueckstein said in court that he expects the FTX bankruptcy case to conclude in the second quarter of 2024, or sometime between April and June.
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