The bankrupt FTX has officially announced a deadline for its customers to file claims against the bankrupt cryptocurrency exchange. Per an official announcement on X (formerly Twitter), claimants have until 4 PM ET on September 29, 2023, to submit their claims through the FTX Customer Claims Portal. The exchange shared a Twitter thread regarding the same:
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
FTX clarified that initiating the Know Your Customer (KYC) process is advised but not mandatory for filing a claim. The firm added that the KYC review process will continue even after the bar date.
The announcement follows a June 29 ruling by the United States Bankruptcy Court for the District of Delaware, which had already established September 29 as the deadline for investors to file claims. The court’s decision came amid estimates from FTX’s bankruptcy team that the exchange owes its customers a staggering $8.7 billion.
On September 13, Judge John Dorsey of the same court approved FTX’s request to liquidate its crypto assets, valued at approximately $3.4 billion. The assets include major cryptocurrencies such as Solana, Bitcoin, and Ethereum. Judge Dorsey overruled objections from two customers who contested the liquidation, stating they failed to establish ownership interests in any specific cryptocurrency.
Amidst this, Allan Joseph Bankman and Barbara Fried, the parents of former FTX CEO Sam Bankman-Fried, are facing a lawsuit for allegedly siphoning millions from the company. The suit accused them of directing more than $5.5 million in charitable contributions from FTX to Stanford University. Stanford, in turn, announced its intention to return all donations received from FTX and related companies.
Meanwhile, Bankman-Fried is facing criminal charges and is set to stand trial on October 3. His request for temporary release to prepare for the trial was denied. Bankman-Fried has pleaded not guilty to charges that include cheating investors and misappropriating customer deposits. As of September 11, approximately 36,075 customer claims worth $16 billion have been filed, with 10% already agreed upon.
Amidst these legal and financial challenges, FTX faced a cybersecurity incident that temporarily shut down its customer claims portal. According to reports, the cyber breach exposed non-sensitive customer data but did not impact FTX’s systems. The exchange has since restored the portal with enhanced security measures, assuring that account passwords and funds remain unaffected.
