In a revelation, cryptocurrency trading platform FTX Trading Ltd. (FTX) has set a deadline of September 29, 2023, for filing proofs of claim in the ongoing Chapter 11 bankruptcy case. The decision comes from the United States Bankruptcy Court for the District of Delaware as the countdown for creditors begins.
FTX, a prominent entity in the volatile world of cryptocurrency exchanges, collapsed under the weight of financial woes, filing for Chapter 11 bankruptcy earlier this year. The court order now demands that proofs of claim against the debtors be submitted on or before the specified date. This includes all entities and individuals holding a Customer Claim.
The FTX debtors have provided an electronic avenue for filing these claims. They encourage customers to utilize their online portal at https://claims.ftx.com/ for submitting their proofs. However, the company also clarified that receiving the notice does not automatically imply that the recipient holds a claim. All customers registered with FTX are receiving this notice as a part of the due process.
The notice has further described in detail the kinds of claims applicable in this situation. A Customer Claim refers to any claim of any kind that is related to cash, cryptocurrency, digital assets, or other assets held by a person in an account on any FTX Exchange as of the petition date. Another aspect of a Customer Claim could be any other investment or trading activities on any FTX Exchange. Not all claims are deemed valid, though, with some exceptions noted for certain platforms and situations.
Additionally, it should be noted that for a claim to be verified, the claimant must agree with the amounts set forth on the Debtors’ Schedules, and they must submit the requested Know Your Customer (KYC) information by the Customer Bar Date. If these criteria aren’t met, the claim may be deemed unverified and possibly subjected to further scrutiny.
Submissions for claims can be made electronically or through traditional mail. For physical proof of claims, users must refer to the guidelines mentioned in the notice for appropriate submission. It is important to underline that proofs of claim submitted after the Customer Bar Date may not be entertained, as per the order of the court. The claimant may then be barred from asserting the claim against the debtor or receiving any distribution under the Chapter 11 Plan.
This sudden turn of events serves as a stark reminder of the turbulent waves that the cryptocurrency world can encounter. For FTX customers, it is a race against time as they navigate the winding path of legal procedures and bureaucratic complexities. In the fast-paced world of digital currency, only time will tell who manages to claim their due and who gets left in the lurch.
