Do not send original application documents, do not make a fraudulent claim, do not add additional personal details, submit your claim as early as possible.
Written by: Paul Ade
Compilation: Moni, Daily Planet
Users have been wanting compensation since FTX went bankrupt, and this guide will walk through six steps to file a claim against FTX and get compensation. However, it should be noted that since the current FTX bankruptcy and SBF lawsuits are still ongoing, it is not confirmed whether each affected user will eventually be able to receive compensation, and it is also uncertain how much compensation can be obtained.
For some FTX users, this "six-step" application process may be a bit complicated, but it may give them some ways to get their funds back when they are in deep pain.
Step 1: Fill in the claim application PDF carefully and truthfully
If users affected by FTX's bankruptcy want to get their funds back, they must submit a claim application to the US bankruptcy trustee Kroll Restructuring Administration LLC. Users must read and understand the Claim Instructions and must properly and truthfully complete the Claim Application PDF before the claim can be processed.
For example, the Delaware U.S. Bankruptcy Court, which is handling the FTX bankruptcy case, advises users not to send original application documents, because they will permanently destroy them after receiving them. One more thing to be very careful about - don't make fraudulent claims! Users who do so could be sentenced to 5 years in prison or fined up to $50,000 (possibly both).
Additionally, applicants must add the following documents to their claim: Mortgage, Promissory Note, Invoice, Purchase Order, Security Agreement, and Judgment, and you may upload screenshots or videos of proof of provisioning assets on FTX for this Kroll Restructuring Administration claim The application also provides a number of other channels for submitting application documents. In addition, claimants can use this link to view the submitted information, click on the claim number after entering the page, go to the upper right corner, and click "Claim Proof PDF" to view.
Step 2: Do not provide additional personal information
For users applying for FTX claims, you need to make sure that you do not add any personal information to the application documents, such information includes personal data, TIN (tax identification number) and ID card, etc.
In fact, in the process of filling out the document, the document also warns users not to add additional personal details. The document states: "Any information about this application or any related documents that the applicant considers to be privacy sensitive should be Deleted or redacted because the public has access to the unredacted data, leading to the potential for user identities to be stolen by criminals."
Step Three: Request Confirmation to Include Claims in Bankruptcy Proceedings and Report Losses on Tax Returns
Users filing an FTX claim will need to have the attached documents and application confirmed by the bankruptcy administrator, Kroll Restructuring Administration, which confirms the claim information as part of the overall bankruptcy claim process. More importantly, the confirmation of an insolvency administrator facilitates the reporting of financial losses to the relevant tax authorities.
In addition, all affected parties must make it clear to the tax authorities or tax advisors how the claim will be handled, and reporting the fraudulent losses to local law enforcement and filing a formal complaint can also be of considerable help.
Step 4: You must add a US stamp and label the envelope
It should be noted that if the user wants the FTX bankruptcy administrator, Kroll Restructuring Administration, to confirm the claim, it must be mailed to them, and only a labeled envelope with a US postage stamp will be confirmed by the company. Unfortunately, it's not easy to get these stamps as the US Post Office or Consulates don't ship stamps to FTX users around the world.
However, you can buy US postage stamps on platforms such as Frankaturware.com, since you don't know how many confirmation documents the receiver Kroll Restructuring Administration needs to attach, you also need to consider the document weight, because for large airmails weighing more than 198 grams Additional stamps may also need to be purchased and attached.
Step 5: Send the application documents to the bankruptcy administrator by mail
Provided your envelope already contains all the necessary documents and you have properly stamped them, please post 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 claim as early as possible
While FTX receivership Kroll Restructuring Administration Inc. allows users to send PDF documents digitally, it's definitely worth the mail. In addition, it should be noted that the claim application file reads:
"When the court sets a deadline for filing proofs of debt against a debtor, all identified creditors will be notified of the deadline and they will also receive instructions on how to file their claim."
Although the court currently handling FTX bankruptcy cases does not have a deadline for filing claims (so you don’t have to worry about not filing a claim for now), the fact is that filing on time is crucial and it’s always good to file a claim early.
