FTX, which has been involved in numerous scandals and is currently under scrutiny due to ongoing legal proceedings, has reopened its customer claim portal that was previously closed due to a cyber attack, after updating its security protocols. FTX customers will continue to be able to make claims for their crypto assets before the company goes bankrupt.
Reopening of the Claim Portal
On September 16, FTX announced that its portal system was not affected by the cyber breach involving Kroll, the representative for bankruptcy claims. The statement also guaranteed that while personal data of customers was exposed in the cyber attack, account passwords and crypto assets remained unaffected. FTX account holders can now access their accounts and continue the claim process for crypto assets held on the exchange before declaring bankruptcy in November 2022.
The claim portal is currently available to asset holders with FTX, FTX US, FTX Japan, FTX EU, and Blockfolio accounts. According to the disclosed data, there are approximately 36,075 customer claims worth around $16 billion against FTX and FTX US, with only 10% of these customers reaching a settlement. Additionally, FTX has reportedly received non-customer claims against them, including requests from institutional customers Genesis, Celsius, and Voyager, totaling $65 billion in value.
Conditional Approval for Asset Sales to FTX
Following these developments, the United States Bankruptcy Court for the District of Delaware recently granted approval for FTX to sell its crypto assets. On September 13, Judge John Dorsey issued a decision allowing FTX to sell its assets in weekly batches through an investment advisory firm under strict conditions. Under this ruling, the asset sale will be limited to $50 million in the first week and $100 million in subsequent weeks.
Furthermore, the ruling prohibits FTX from selling Bitcoin, Ethereum, and certain crypto assets associated with the company. Any potential sale of these crypto assets requires a separate decision from FTX after a 10-day notice to committees and the US trustee.
