The highly anticipated claims portal launched by FTX, the bankrupt cryptocurrency exchange, vanished shortly after its debut, leaving users in a state of uncertainty.
Quick facts:
- FTX’s claims portal disappeared shortly after its launch, causing uncertainty for users seeking to file claims.
- The portal allowed customers from various related platforms to submit claims for consideration during the ongoing bankruptcy proceedings.
- Users can still file claims through alternative methods, such as Kroll’s online customer form or traditional mail.
- FTX is exploring discussions with potential investors for a relaunch, while the new CEO criticizes the former management’s corporate controls.
The portal, designed to allow affected users to file proofs of claim, went offline for unknown reasons, disrupting the filing process
The FTX claims portal, which went live on July 11, was met with enthusiasm as it provided customers of the failed crypto exchange, including FTX, FTX.US, Blockfolio, FTX EU, FTX Japan, and Liquid, the opportunity to access their account information and submit claims for consideration in the ongoing restructuring proceedings.
Users were given a deadline of September 29 to submit their claims, as stated on FTX’s Kroll page.
However, shortly after its launch, the claims portal unexpectedly disappeared, leaving users unable to access their accounts or submit their claims.
Prior to its disappearance, the portal had promised users access to their account balances as of November 11, 2022, the day the exchange filed for bankruptcy in the United States.
Despite the portal’s unavailability, affected users still have alternative options to file their claims. They can submit a proof of claim through its Kroll’s online customer form or utilize the traditional mail method.
However, the sudden disappearance of the claims portal has caused frustration and uncertainty among users seeking resolution for their claims.
The exchange’s bankruptcy case is currently ongoing in the District of Delaware, while former CEO Sam Bankman-Fried is facing upcoming criminal trials for allegations of fraud, scheduled to begin in October.
FTX Version 2.0 Relaunch
According to a report by the Wall Street Journal, the digital asset exchange currently undergoing bankruptcy proceedings, initiated early discussions in June with potential investors to facilitate the relaunch of its cryptocurrency trading platform.
The exchange’s newly appointed CEO, John J. Ray III, revealed these ongoing discussions, signaling FTX’s efforts to resurrect its operations and reestablish itself in the market.
As reported by an American publication, the exchange is reportedly exploring the possibility of launching a rebranded entity through different structures, including a potential joint venture.
Sources familiar with the matter revealed that discussions among the exchange’s management included potential compensation options for specific existing customers, which could involve providing them with stakes in the reorganized entity.
Related: FTX Debt Recovery Efforts Yield $7B Amid Investigative Challenges
Ray III expressed his interest in resurrecting the cryptocurrency exchange in January. Having assumed leadership of the exchange in November, Ray III highlighted that some customers had praised the platform’s technology and recommended a potential relaunch.
Ray III has voiced his criticism of Bankman-Fried’s management and its affiliated entities, describing it as a “complete failure of corporate controls.”
He pointed out deficiencies in the governance framework, management of cash and human resources, controls over disbursements, record-keeping practices for digital asset custody, investment activities, and decision-making processes within the FTX Group during the tenure of the former CEO.
