FTX, a cryptocurrency exchange, has announced the reopening of its customer claims portal after a cybersecurity incident in August. This incident led to the freezing of user accounts as a precautionary measure. However, FTX has now implemented additional security measures on the claims platform to ensure the safety of user accounts.
In November 2022, FTX filed for bankruptcy, and account holders of the defunct crypto exchange can now access their accounts and proceed with the claims process for the digital assets they held on the exchange before the filing. This development allows affected users to resume the claims process and seek compensation for their losses.
The claims portal is available to individuals who hold accounts with FTX, FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid. These users can now take the necessary steps to recover their assets.
The cybersecurity incident in August involved a “SIM swapping” attack, which allowed a threat actor to gain access to certain files containing personal information of bankruptcy claimants in the cases of BlockFi, FTX, and Genesis. Kroll, the third-party agent handling creditor claims for the FTX bankruptcy, froze the affected user accounts. However, FTX clarified that no passwords or KYC information related to FTX were exposed in the breach.
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To file a proof of claim with Kroll, FTX customers have until September 29. While the extent of the value that creditors will be able to recover remains uncertain, the judge overseeing FTX’s bankruptcy case recently approved the estate’s plan to initiate the liquidation of its digital assets.
In a recent court filing, FTX revealed that it has received a total of 36,075 customer claims, amounting to $16 billion, against the exchange and its US arm. Out of these claims, 10% have already been agreed upon. Additionally, non-customer claims worth $65 billion, including those from Genesis, Celsius, and Voyager, have been filed against the entity.
Furthermore, FTX holds approximately $7 billion in assets, which includes $1.16 billion worth of Solana (SOL) tokens and $560 million in Bitcoin (BTC). The company has managed to secure $1.5 billion in cash, in addition to the $1.1 billion it held at the time of filing for bankruptcy. FTX also possesses $3.4 billion worth of various cryptocurrencies, including over 1,300 lesser-known and potentially less liquid tokens.
A judge in the US Bankruptcy Court for the District of Delaware has ruled that FTX can sell and invest its crypto holdings to pay back creditors. This ruling opens up possibilities for FTX to utilize its assets to settle debts and begin the process of recovery.
Justin Sun, the founder of Tron Network, has expressed interest in making a bid for the assets held by FTX to minimize the impact a sale could have on the market. His goal is to ignite growth in the sector and provide stability during the settlement process.
The reopening of the customer claims portal by FTX is a significant step towards resolving the issues caused by the cybersecurity incident. It allows affected users to regain access to their accounts and seek compensation for their losses. With the approval of the estate’s plan for liquidating digital assets and the possibility of asset sales, FTX aims to address the claims and ensure a fair resolution for its creditors. The involvement of prominent figures like Justin Sun also adds a layer of potential solutions and recovery options for the exchange.
