You must be aware that the cryptocurrency exchange FTX recently declared bankruptcy under Chapter 11. Many of you must have used the platform to make investments after seeing commercials with Steph Curry and Larry David.
You must have chosen to test trading on their platform if you reside in the Miami area and observed that they sponsor your NBA stadium.
Additionally, some of you must be politically engaged because you noted that the apparently successful company contributed $37 million to recent political campaigns and believed it was a secure investment.
However, FTX filed for bankruptcy because a recent “run” on their markets left them with insufficient liquidity to pay their debts. Therefore, if you had money invested with their site, it is now time to think about your possibilities of getting the money.
In this post, we will try to tell you how to claim FTX to get your own money back from them.
For FTX consumers, the past few weeks have been terrible. Many people watched in horror as the platform they relied on quickly came apart, rendering users helpless and preventing them from withdrawing their money.
The bad news is that you might not be able to recover any assets you had on the exchange. Even if you are able to retrieve part of your money, it can take years.
The main inquiries for FTX and US clients who want to know if they might get their money back are:
How much capital does FTX possess? The company’s balance sheet has a significant hole in it, and it is unclear what assets it still owns or how much money the restructuring efforts might be able to save. It will have less money to pay its debtors the less cash it has on hand.
What will happen to FTX consumers during any bankruptcy proceedings? FTX owes money to a lot of individuals, and bankruptcies typically follow a hierarchy. We don’t yet know where consumers will rank in the line, and certain creditors will be given higher priority than others.
What to know regarding FTX and bankruptcy
The first thing to know is that as of November 17th, 2022, FTX has filed for “Chapter 11” bankruptcy. This indicates that they are regarded by the Bankruptcy Court as the “debtor,” or the party that owes obligations. In the event that FTX owes you money, you are a potential “creditor.”
But how will you get involved with your repayment process? Your first step will be to file for a “Proof of Claim.”
What a “Proof of Claim” is?
A crucial component of the bankruptcy process is proof of claim. It certifies your claim to compensation from the debtor as a creditor. The type of claim, priority standing, and amount of the outstanding debt are all specified in the evidence of claim.
A creditor’s capacity to manage its financial obligations may be seriously harmed by the debtor’s chapter 11 bankruptcy filing. A debtor’s ability to repay you can change depending on whether, how, and when you file a chapter 11 bankruptcy proof of claim.
You may be confident that your bankruptcy claim is fairly represented in the proceedings and that you have a legitimate avenue for redress against FTX by providing the court with a proper Proof of Claim.