FTX Restores Customer Claims Portal After Cyberattack
FTX, the bankrupt crypto exchange, has reopened its customer claims portal with increased security measures following a recent cyberattack. The breach exposed non-sensitive data of claimants but did not affect account passwords or funds. Now, customers can resume submitting claims for assets held before the exchange declared insolvency in November 2022.
Reactivation of Claims Portal
The reactivated portal allows creditors from FTX-related platforms like Blockfolio, FTX EU, and FTX Japan to proceed with the claims process. FTX and FTX US are currently facing lawsuits involving claims worth $16 billion, with 10% already agreed upon. Additionally, there are 2,300 non-customer claims worth $65 billion.
Addressing Customer Concerns
FTX had previously suspended accounts as a precautionary measure after the cyberattack. However, users could still submit proof-of-claim through Kroll’s online customer form or by mail. FTX has now restored access to the claims portal after implementing additional security measures.
Sale of Digital Assets
The U.S. Bankruptcy Court for the District of Delaware has approved the sale of FTX’s digital assets. Judge John Dorsey ruled that FTX can sell off assets in weekly batches, starting with a limit of $50 million and increasing to $100 million in subsequent weeks. However, FTX is currently prohibited from selling bitcoin, ether, and certain insider-affiliated tokens without a separate decision.
Hot Take: FTX Prioritizes Security and Claims Process Amid Cyberattack Fallout
FTX’s decision to restore its customer claims portal with enhanced security measures demonstrates its commitment to addressing customer concerns and ensuring the claims process proceeds smoothly. By allowing creditors to submit claims for assets held before the exchange’s insolvency, FTX aims to provide a fair resolution for affected parties. The approval of the sale of FTX’s digital assets by the U.S. Bankruptcy Court is a significant step forward in the exchange’s recovery process. However, the restriction on selling certain cryptocurrencies highlights the need for further deliberation and compliance with legal requirements. FTX’s actions reflect its determination to navigate the aftermath of the cyberattack responsibly and prioritize the interests of its customers and stakeholders.
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