FTX Customers Have Until End of September to Submit Bankruptcy Claims – Former clients of FTX, a cryptocurrency exchange, as well as Alameda Research, a trading firm, and numerous associated entities, have a deadline of September 29th to file claims against the bankruptcy estate and participate in voting on the Chapter 11 restructuring proposal.
The Bankruptcy Court for the District of Delaware has mandated that each claim should indicate the asset type (cryptocurrency, fiat currency, or NFT) and be stated in U.S. dollars. All ex-customers will be sent an email with a Customer Claims Portal link for this purpose. The list of debtor companies eligible for claims can be accessed here. It is worth mentioning that FTX’s European and Japanese entities, which had segregated accounts, are notably missing from the list.
According to a report, being an FTX customer in Japan was advantageous due to the stringent post-Mt. Gox regulatory landscape, which necessitates the involvement of third-party custodians. According to a recent statement by FTX CEO John Ray III, the cryptocurrency exchange acknowledges a debt of $8.7 billion to its customers. However, it is important to note that the exchange has managed to recuperate approximately $7 billion in liquid assets.
Notably, FTX’s European and Japanese entities, which had segregated accounts, are not included in the list of debtor companies eligible for claims. The exclusion of these entities could potentially impact the total amount owed to customers. The presence of segregated accounts in Europe and Japan, as reported, highlights the favorable regulatory environment in Japan, where third-party custodians are required post-Mt. Gox.
This regulatory requirement has likely provided additional protection to FTX customers in the region. As the claims process progresses, former customers of FTX, Alameda Research, and their affiliated companies are urged to submit their claims by the September 29th deadline. The claims should specify the type of asset and be denominated in U.S. dollars, as stipulated by the Bankruptcy Court for the District of Delaware.
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Once claims have been submitted, former customers will receive an email containing a link to the Customer Claims Portal, which will facilitate the process of filing their claims and participating in the Chapter 11 restructuring plan vote. With $8.7 billion owed to customers and $7 billion already recovered in liquid assets, the restructuring plan and claims process will play a crucial role in determining the distribution of remaining funds and addressing the financial obligations owed by FTX and its affiliated companies.