Finally Doing an FTX Claim

in LeoFinance18 days ago

Finally Doing an FTX Claim.png

Yes yes... I know that I'm crazily behind on this... but for quite a while, I just couldn't be bothered with following the mass of bankruptcy emails and news... especially as our space is so littered with scams and fakes that it was pretty hard to tell if the emails that I was getting was anywhere close to being the real thing... or if I was going to get scammed out of even more money!

And the motivation for doing the claim was pretty low anyway... I think that I had at most about 5000 USD in FTX at the time that it went down... it stung, but I had gotten used to the idea that it was written off for good. And the risk of being scammed was real...

... but now that we are a couple of years into the bankruptcy proceedings, and with payments being made in the coming year (2025)... I figured that it was worth going back to FTX and figuring out how to do a bankruptcy claim. Of course, I've never had to do anything like this before, so it was handy that there was a pretty logical and easy flow that was set up to do it.

You did need to log in with your old FTX credentials, including your 2FA if you had had that set up. Then a simple email confirmation (that needs to be done every time you log onto the claims portal...). Then an annoying KYC thing... proof of identity and address. All automated, and for some reason the home internet bill wasn't being taken as proof of address despite saying that it should be fine. Sigh, so a utility bill it was...

And then I could see the value of my claim... 250 USD. Ouch... Now, this was the other part of me not bothering earlier with the bankruptcy claim. The liquidators were paying out the USD value of your holdings when FTX filed for bankruptcy... which as we all remember was post-CRASH!!!!!

Now, this has been quite a controversy... as most people wanted to be paid back in the tokens/coins that they had on exchange... and you are able to able to view your balances so that you know what was on there at the time of the crash and the lockout. But no, we are being paid back in USD value instead.... but that doesn't stop the PR machine claiming that creditors are being paid out 118% MORE than the value of their claims.

It is pretty galling... even if it is "technically" true... but the spirit is completely askew... and one wonders where the "profit" goes.

Anyway 250 USD is slightly better than nothing... and so after doing the prefill and automated filing of the US Tax form... well, then it is time to link the preferred distribution provider (Kraken for me...)... and then just hang around and wait for the distribution to occur sometime in the next year. Wow... the whole process made it quite clear how poor the CEX model and the centralised rule system for bankruptcies is... honestly, they could have just dumped out the tokens directly as a sort of withdrawal into the distribution provider addresses. Sigh....

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😏 250 vs 5000 in value is a real dissapointment but well. Hope you get them in January, heard they will then do the payouts. Any Plans what to do with the Cash yet?

Yeah it stings, but at least there is something. I'm probably going to just let it sit in a DeFi savings vault until it is useful... Ethena or something.

I need to reach out to my brother in law. He had some funds on FTX and I am not sure if he got them back. He might have just given up on them or wrote them off already.

I had figured on writing it off... and the amount that you get back is pretty pitiful, but still... not nothing!

Something is definitely better than nothing!

I had no account at FTX but I had around 230€ in Liquid, which they bought a couple of months before going under. How can a company near bankrupt buy another exchange? That sure is strange...

Anyway, I tried that claim process but the login I had didn't work. And of course, there's no support from that dead exchange now... looking at your values, I would receive around 12€ back, so it really seems pointless. I can get that doing 2 or 3 Hive posts. 😆

Happy new year! 🥂

Well, they were doing lots of dodgy things... buying things whilst bankrupt was probably the "least" dodgy!

The bankruptcy claim was for FTX accounts only... not sure how the Liquid creditors would have done it. Possibly via Liquid itself?

We were supposed to use the Liquid login in the same FTX claim as everyone else but it didn't work. At least for me.

And yes, I have the right password, I have it written and stored in a hidden place.

Oh, that is bad... sorry it didn't work.