Robert Steinadler, 2 months ago
The FTX crisis was the topic in late 2022 and it continued this year with a lot of fallout for the crypto industry. With the market recovering since the beginning of this year it almost seems that FTX drama has been forgotten. Now that the former empire of Sam Bankman-Fried lies in shambles ex-customers wonder if and when they get reimbursed. It looks like the time has come at least for a few of them and that they could be made whole soon.
What is FTX EU? Which customers are eligible to withdraw funds?
Customers who signed up after March 2022 were not with FTX Trading International but with FTX EU. The latter group is eligible to apply to withdraw funds in cash. FTX EU has set up a website for this purpose where customers can register their claims preferably before May 1st.
There has been some concern on social media about whether the platform and the offer are legit. According to the official register of the Cyperus Securities and Exchange Commission, the license of FTX EU Ltd. was suspended in November 2022. With the suspension, FTX EU was effectively barred from providing any financial services. However, the company is still allowed to settle internal transactions and transactions with its customers.
FTX EU is a separate entity and has been solvent unlike its parent company and many of its subsidiaries. Before the events in Europe, a very similar opportunity has been given to customers in Japan for the same reason.
All other customers have been contacted by Kroll Restructuring or might be contacted by them in the future. They have to file their claims with the respective court and go through a lengthy process. While there are many subsidiaries most regular customers that traded on FTX have been with FTX Trading Int. and that means they have to file their claims with the bankruptcy court in the district of Delaware.
Most information and guidance are available on the official website of Kroll Restructuring. At this point, it is difficult to estimate how long it will take until the matter is settled. It is also very difficult to foresee how much money can be recovered for FTX creditors. Some of the funds on the company's balance sheet were held in FTT which dropped sharply in price and lacks liquidity. Other funds have been returned lately by OKX which reduces the impact of Alameda Research losing FTX customer funds slightly.
Featured Image: © Dennis Diatel / Shutterstock.com
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