FTX Reopens Claims Portal Amid Concerns About Asset Recovery Strategy
FTX, a beleaguered crypto exchange founded by Sam Bankman-Fried, reopened its claims portal after a temporary shutdown due to a cybersecurity incident.
The crypto exchange informed the public through social media that claimants can continue using the portal after bolstering the platform with enhanced security features.
FTX’s Deadline for Creditors
Creditors of the distressed exchange FTX have until September 29 to submit their claims against FTX.
In August, Kroll, the independent firm overseeing the claims for FTX’s bankruptcy, suffered a security breach. This unforeseen event led FTX to halt the accounts of claimants momentarily. The exchange quickly assures its users that their accounts remained intact, emphasizing that the suspension was purely precautionary.
Kroll determined that the breach resulted from a SIM swap attack. It hinted that hackers might have accessed files that contained some claimants’ personal details.
With the deadline for claims registration drawing near, FTX’s clientele remains in the dark. They know little to nothing regarding the scope of potential asset recovery and the exchange’s methodology for refunding assets.
The court recently nodded to FTX’s plan to liquidate cryptos valued at over $3 billion. This decision has sparked concerns in the crypto industry about its possible repercussions on market behavior, especially potential heightened sell-offs.
However, it is crucial to emphasize that the ratified plan adopts a phased tactic. FTX will cap its weekly asset sales to $100 million. Still, FTX has room to stretch the sale to $200 million for certain tokens.
The exchange must also provide a ten-day advance notice to the US trustee office before commencing crypto sales. This strategy lays out FTX’s aim to thoughtfully hedge its Bitcoin and Ethereum stakes to amplify returns while gradually transitioning other assets into fiat.
Sam Bankman-Fried Points Fingers
As the FTX bankruptcy estate pushes forward with its recovery efforts, the central character in the saga, Sam Bankman-Fried, proclaims his blamelessness.
Unveiled snippets from confidential documents penned by Bankman-Fried during his house arrest appeared in the New York Times. In these writings, Bankman-Fried pointed fingers at his colleagues and associates, naming Caroline Ellison and Sam Trabucco, both CEOs of Alameda Research.
Bankman-Fried did not spare the FTX bankruptcy attorneys either, asserting that the firm concocted the story of his alleged fund mismanagement.
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