ENTWISTLE & CAPPUCCI ADVISES FTX CUSTOMERS OF PENDING DEADLINE TO CONFIRM ACCOUNT INFORMATION AND/OR SUBMIT PROOF OF CLAIM

September 8, 2023

The FTX Bankruptcy Court has set a Customer Claims Bar date (the “Bar Date”) of September 29, 2023 for the filing of Customer Claims for both the US Exchange and the Foreign FTX Exchange.  You are not required to file a claim.  However, if you do not file a claim before the Bar Date, you will be precluded from disputing the amount the Debtors have scheduled for your claim based upon their records.  The Debtors are valuing all claims as of the date of the filing of the bankruptcy in USD regardless of currency held because all of the funds were commingled.

The Debtors have set up a website (https://claims.ftx.com/) where you can view the scheduled valuation of your account.  Pursuant to the claim procedures, your account value on the filing date will be your recognized claim unless you dispute it.  There is a procedure on the website to dispute the claim, but to do so you will need detailed documentation.  To be clear, in order to have a recognized claim in the amount of your account balance on the date of the bankruptcy filing, you need do nothing.  However, if you wish to dispute the balance on the Debtors’ records, you need to do so through the website before the Bar Date, which is September 29, 2023 at 4:00 p.m. EST.

The website portal also has a link for KYC verification.  Whether or not you decide to file a claim, US law requires KYC verification in order for FTX customers to be paid any amount through the bankruptcy process. We urge you to follow the link in the portal to complete your KYC verification.  You do not need to verify before the Bar Date, but you should absolutely do so as soon as possible.  Once completed, you will be in a position to be paid out and we are told payments will be made to verified accounts first (presumably in some order of verification).  Early verification also avoids the “rush” later and it allows time in case your documentation is not in order.  Additionally, at some point, claims will be able to be traded.  We understand that the Debtors only intend for fully verified claims to be traded.  Currently, any trades being done “off-book” are at a discount to any verification and related issues.  Once your account is verified, it likely sheds that KYC-related trading discount.

Entwistle & Cappucci LLP represents a prospective class of all customers with claims against FTX.  More information may be found on the firm’s website.  You may also contact Josh Porter ([email protected]) or Robert Cappucci ([email protected]).

 

Nothing in this release should be construed as legal advice.