6 Specific Steps FTX Creditors Need To Pay Attention To Claim Compensation

Key Points:

• FTX creditors should note the following 6 steps to claim compensation.
• The lawsuits surrounding the bankruptcy of FTX are still under investigation, so the compensation for customers has not been determined.
• The claim form can be a helpful tool for victims.

Since FTX went bankrupt, users have filed claims, and this guide will walk you through the six steps to file a lawsuit against FTX and receive compensation. Below are specific instructions for FTX creditors to claim the amount of payment.

It should be noted, however, that as the current FTX bankruptcy case and SBF lawsuits are still ongoing, it has yet to be confirmed whether each affected user will ultimately be able to receive compensation. It is also unclear how much payment can be accepted.

6 steps to claim compensation

Step 1: Fill out the PDF claim form carefully and honestly

If users affected by the FTX bankruptcy want their funds back, they must file a claim with the restructuring regulator Kroll, the US Bankruptcy Administration. The User must read and understand the Complaints Guide and must correctly and truthfully fill out the PDF Complaint Form before the complaint can be processed.

For example, the US Delaware Bankruptcy Court, which is dealing with FTX’s bankruptcy case, advises users against submitting original registration documents, as they will permanently destroy them once received. One more thing to be very careful about – don’t make fraudulent claims! Users who do so can be sentenced to 5 years in prison or fined up to $50,000 (possibly both).

In addition, applicants must add the following documents to their request: Mortgage, Promissory note, Invoice, Purchase Order, Confidentiality Agreement, and Judgment, and you can upload screenshots or videos proof of provision of assets on FTX for this Kroll Restructuring Management request The application also provides several other channels for submitting application documents. Alternatively, claim applicants can use this link to view submitted information, once on the page click on the claim number, go to the upper right corner and click on “PDF Proof of Claim” to see.

Step 2: Do not provide more personal information

For users applying for an FTX claim, you need to ensure that you do not add any personal information to the registration document, that information includes personal data, TIN (tax identification number) and proof of identity mail, etc.

In fact, during the process of filling out the document, the document also warns the user not to add personal information or be redacted because the public has access to the unedited data, making the list unedited. User’s privacy is at risk of criminal theft.

Step 3: Request Confirmation to Include Claims in Bankruptcy and Loss Statements on Tax Returns

Users filing an FTX claim will need to have attached documents and the application verified by the bankruptcy administrator, Kroll Restructuring Authority, confirming the requested information as part of the process. overall bankruptcy filing. More importantly, the insolvency manager’s certification facilitates the reporting of financial losses to the relevant tax authorities.

In addition, all affected parties must clearly notify tax authorities or tax advisors on how to handle claims and report fraudulent losses to local law enforcement and file Formal complaints can also be of great help.

Step 4: You must put a US stamp and label on the envelope

It should be noted that if a user wants the bankruptcy administrator of FTX, the Kroll Restructuring Authority, to confirm the claim, it must be mailed to them and only in an envelope with a postage stamp. US only confirmed by the company. Unfortunately, these stamps are not easy to obtain as the US Postal Service or Consulate does not send stamps to FTX users around the world.

However, you can purchase US postage stamps on platforms like Frankaturware.com, since you don’t know how many confirmation documents the Kroll Recipient Restructuring Administration needs to attach, you also need to consider document weight, as for major airmails it will weigh more than 198 grams You may also need to purchase and additional stamps.

Step 5: Send registration documents to the bankruptcy administrator by mail

Provided your envelope contains all the required documents and you have properly stamped them, please send these applications via DHL Express to the following address:

FTX Trading Ltd. Claims Processing Center

c/o Kroll Restructuring Administration LLC

850 3rd Avenue, Suite 412

Brooklyn, NY 11232

Step 6: Submit your request ASAP

Although FTX receivership Kroll Restructuring Administration Inc. allows users to send PDF documents in digital form, but it is definitely worth sending in the mail. In addition, it should be noted that the claim file states: “When the court sets a deadline for filing proof of a claim against a debtor, all identified creditors will be notified of the deadline and they will also receive instructions on how to file a claim.”

The claim form can be a helpful tool for victims

Sam Bankman-Fried built the FTX cryptocurrency exchange thanks to the reputation of the trading company Alameda Research. Alameda herself is merely applying Wall Street-style “magic” to the crypto world, but everyone is sure it will win big. Transactions outside of Alameda, including a Bitcoin-related bet in Japan, have not been revealed much to the press.

Before being charged by federal prosecutors in December with a series of charges, Bankman-Fried said Alameda was “doing very well” until it took a sudden plunge in November. Bankman-Fried testified at the time. After that, I no longer ran Alameda myself and by the time I realized the problem, it was too late.

Looking deeper, it can be seen that Alameda has never worked effectively. Bankman-Fried entrenched in power even after stepping down as CEO in October 2021. Alameda used billions of dollars stolen from FTX customers to bet on a thriving future. Alameda herself also bought a lot of real estate and donated money to politicians.

Therefore, it led to a rapid collapse and beyond the imagination of investors.

Since the collapse of FTX, Bankman-Fried has tried to deny any connection between himself and Alameda. “FTX is a full-time job. My brain doesn’t have enough room to understand what’s going on at Alameda,” he said.

As updated in an earlier article by Coincu News, for the interest of debt, FTX Trading and its affiliated debtors announced on Friday that they would seek the restoration of cryptocurrency held by the Bahamas Commission to their chapter 11 estates. The Bahamas Security Commission announced on Thursday that it has been holding onto FTX customer assets worth more than $3.5 billion since November 12. The FTX debtors have informed the Bahamas Commission that they do not believe Bankman-Fried, Wang, or the Bahamas Commission have the authority to take any of their cryptocurrency.

While the courts currently dealing with FTX bankruptcy cases do not have a filing deadline (so you don’t have to worry about not filing a claim now), the fact that filing on time is very important and early filing is always a good thing to claim.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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