News - Last chance for compensation. Exciting weeks surrounding SBF trial

By Ted Maas

Last chance for compensation. Exciting weeks surrounding SBF trial

FTX
Scams, crime and fraud

Those seeking compensation from insolvent crypto exchange FTX should hurry. Indeed, the deadline expires this week.

The FTX debacle is one of the biggest financial scandals in our history. The collapse of Bankman-Fried's (SBF) empire not only plunged the entire crypto sector into a severe crisis, but also harmed millions of customers. So far, however, only a fraction of these customers have claimed compensation. Yet the deadline for doing so is getting closer and closer.

FTX insolventieprocedure

Anyone wishing to file a claim against Alameda Research, FTX or other companies in this group should hurry. The deadline for filing claims is next Friday, Sept. 29, at 10 p.m. (CET). Aggrieved parties can participate in the insolvency proceedings through a separate portal. To do so, former customers of the platform must register with their FTX account. A confirmation email will be followed by a KYC process. Thereafter, the trustee, Kroll Restructuring Administration, will audit the accounts retroactively from November 11, 2022 and submit claims if necessary.

Estimates of the actual number of FTX customers vary widely, with reports ranging from one to 10 million users. According to Cointelegraph, just under 36,000 of these users have filed claims.

In late August, a security breach occurred at Kroll that released customer data. Not only FTX, but other insolvent crypto companies such as BlockFi and Genesis were also affected by the data breach. Affected individuals then received scam emails asking them to withdraw funds. The portal has been back online since mid-September. However, the incident did not change the deadline, which remains Sept. 29 at 10 p.m. (CET).

SBF: trial begins next week

After the deadline, the trial of FTX founder Sam Bankman-Fried will begin on Tuesday, Oct. 3. Prosecutors call the demise of the once-leading exchange "one of the largest financial frauds in U.S. history".

The crypto industry is watching the case with suspicion. Also because key executives from FTX of Alameda Research, SBF's hedge fund, are testifying against the platform's founder. The 31-year-old is currently in custody. If convicted, he could face up to 115 years in prison in the worst case.

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