Creditors must read the FTX claims application guide

Although the court currently handling FTX's bankruptcy case has not set a deadline for submitting claims, the sooner you submit your claims, the better.

Since FTX went bankrupt, users have been hoping to get compensation. This guide will introduce six steps to file a claim with FTX and get compensation. However, it should be noted that since the current FTX bankruptcy and SBF lawsuits are still ongoing, it is not certain whether every affected user will eventually be able to get 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 at least give them some ways to get their funds back.

Step 1: Fill out 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 to Kroll Restructuring Administration LLC, the U.S. bankruptcy trustee. Before the application is processed, users must read and understand the claim instructions and must fill out the claim application PDF appropriately and truthfully.

For example, the Delaware U.S. Bankruptcy Court handling the FTX bankruptcy case advised users not to send original application documents because they would permanently destroy them after receiving them. Another thing to be especially careful about is not to file a fraudulent claim! Users who do so may be sentenced to 5 years in prison or a fine of up to $50,000 (or both).

In addition, applicants must add the following documents to their claims: mortgages, promissory notes, invoices, purchase orders, security agreements, and judgments. You can upload screenshots or videos of proof of asset configuration on FTX. For this purpose, Kroll Restructuring Administration's claim application also provides some other application document submission channels. In addition, claim applicants can also use this link to view the submitted information. After entering the page, click on the claim number, go to the upper right corner, and click "Claim Proof PDF" to view it.

Step 2: Do not provide additional personal information

For users applying for FTX claims, you need to make sure that you do not include any personal information in your application documents. This includes personal data, TIN (tax number), and ID card.

In fact, when filling out the application, the document also warns users not to add additional personal details. The document states: "Any information on this application or any related documents that the applicant considers to be privacy sensitive should be deleted or redacted because the unredacted data is accessible to the public and the user's identity may be stolen by criminals."

Step 3: Request confirmation to include the claim in bankruptcy and report the loss on your tax return

Users who apply for FTX claims need to have the bankruptcy administrator, Kroll Restructuring Administration, confirm the attached documents and applications. The company's confirmation of claim information is also part of the entire bankruptcy claim process. More importantly, the bankruptcy administrator's confirmation helps to declare financial losses to relevant tax authorities.

Additionally, all affected parties must clearly communicate with the tax authorities or tax advisors how the claim will be handled, and it can also be helpful to report the losses caused by the fraud to local law enforcement agencies and file a formal complaint.

Step 4: You must add a U.S. stamp and label the envelope

It is important to note that if users want FTX bankruptcy administrator Kroll Restructuring Administration to confirm their claims, they must mail them, and only a labeled envelope with a US stamp can be confirmed by the company. Unfortunately, it is not easy to get these stamps because the US Post Office or consulates will not send stamps to FTX users around the world.

However, you can purchase U.S. stamps on platforms such as Frankaturware.com. Since it is not known how many confirmation documents the bankruptcy administrator Kroll Restructuring Administration will need to attach, you also need to consider the weight of the documents, because for large airmail weighing more than 198 grams, you may need to purchase and attach additional stamps.

Step 5: Send the application documents to the bankruptcy administrator by email

Once your envelope contains all the necessary documents and you have affixed the correct stamp, please send these applications by 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 soon as possible

Although FTX bankruptcy administrator Kroll Restructuring Administration allows users to send PDF documents digitally, it is definitely worth mailing. Another thing to note is that the claim application document states:

“When the court sets a deadline for filing proofs of claim 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 the FTX bankruptcy case has not set a deadline for submitting claims (so you don’t have to worry about being late for the filing of your claim right now), it is actually crucial to submit your claim on time, and it is always better to submit your claim as early as possible.