FTX, the insolvent cryptocurrency exchange, has faced a setback as its newly launched customer claims portal unexpectedly shut down shortly after it went live.
Intended to facilitate the submission of proof of claims by FTX creditors, the portal turned into a realm of disappointment when users discovered it had gone dark after only an hour of operation.
sudden ending The newly launched portal has affected customers and users as they are now unable to file claims online.
The temporary gate closure raises concerns
The portal was initially intended to streamline the customer claims process, and to provide a dedicated platform for users affected by the bankruptcy of the stock exchange. This comes amid ongoing bankruptcy proceedings and legal battles surrounding the cryptocurrency exchange.
Users across various FTX platforms, including FTX US, Blockfolio, FTX EU, and Liquid, initially reported initial access to the portal, offering hope for a streamlined claims process. However, the temporary closure of the Claims Portal has dashed hopes of easy claims for users.
Alternative Claims Submission Options Filed Amid FTX Claims Portal Closure
Despite the temporary closure, FTX clients have been reassured that they can still submit Proof of Claims through alternative channels. Kroll, the appointed claims agent, has introduced a digital form for submitting claims, ensuring that clients can go through the claims process online.
Additionally, traditional mail has been introduced as an alternative method for filing claims, accommodating customers who prefer the non-digital option.
FTT Token trending at $1.69 following closure of claims portal | Source: FTTUSDT on TradingView.com
The FTX bankruptcy case is currently being handled in Delaware, with the proceedings highlighting the exchange’s financial difficulties. With the ongoing bankruptcy proceedings, the stock exchange finds itself in a struggle with large debts estimated at more than $3 billion.
Prosecutors allege that Bankman-Fried, who now faces eight criminal charges, mixed up client assets and provided misleading information regarding FTX’s risk management strategies. The trial of former FTX CEO Sam Bankman-Fried is set to begin in October, as he faces multiple fraud charges.
These developments confirm the seriousness of the situation and the great impact it left on the stock exchange and its clients. The path to the recovery of the once-prominent cryptocurrency exchange remains uncertain, requiring careful navigation through legal procedures and strategic decision-making.
There have been talks about relaunching the cryptocurrency exchange with current CEO John J. Ray III telling the Wall Street Journal in June that the exchange “The process of getting interested parties to restart the FTX.com exchange has begun.” However, nothing concrete has been shared about the restart yet.
Featured image by PYMNTS, chart from TradingView.com