- Users have been hoping for some compensation since the FTX saga. This guide has six steps to file a claim against FTX and get your compensation.
- Meanwhile, two things are uncertain. One is whether the affected users of FTX will ever get their money. Secondly, the amount they might get is unknown.
Following the FTX debacle, several users have been waiting to see if they will receive compensation. Meanwhile, this application process, even though it is complex, could make their dream come true. This guide contains six steps on where and how you can file your claim against FTX with the US tax office.
Step 1: Fill out the PDF
FTX users affected by the FTX collapse must submit their claims with Kroll Restructuring Administration LLC, a bankruptcy trustee in the US. Before processing the application, users must read and understand the instructions. Thus, you can fill out the PDF appropriately.
For instance, the US Bankruptcy Court in Delaware advises users not to send original documents as they usually destroy them permanently afterward. Also, users who file a fraudulent claim can receive a 5-year sentence, pay a $500,000 fine, or both. Also, applicants must add the following documents to their claims: mortgages, promissory notes, invoices, purchase orders, security agreements, and judgments.
These are screen recordings or screenshots of the assets on their FTX profile. Hence, a blank application document is available under the “Proof of Claim Form” section. You can also view submitted information using this link. Click the claim number, go to the top right, and then click “Proof of Claim PDF.”
Step 2: Do not provide any personal info
Ensure you do not add any personal info to your application. Such information includes personal data, TIN (tax identification number), and identity card. The document you are to fill even warns against adding delicate details.
“Any information on this application or any connected documents that applicants deem to be privacy-sensitive should be omitted or redacted,” the document stated. The reason is that non-redacted data could be accessible to the public, allowing criminals to steal users’ identities.
Step 3: Ask for acknowledgment for inclusion into the bankruptcy proceedings and claim losses on your tax return
It is best to ask the insolvency administrator to acknowledge the attached documents and the application. As a result, Kroll affirms that the person is a part of the bankruptcy estate. More importantly, the confirmation aids in claiming the financial loss with the relevant tax authority.
Also, all affected parties must expressly address the tax office or the tax counselor on how the tax agency handles the assertion. It should also be advantageous to report the loss brought on by the scam to the local law enforcement agency and submit a formal complaint.
Step 4: Add US postage and a well-labeled envelope
Only users with a well-labeled envelope with US stamps will receive Kroll’s acknowledgment. Unfortunately, it is not easy to get these postage stamps. You cannot ask the US authorities or consulate to send them to you.
Interestingly, you can buy these stamps on platforms like Frankaturware.com, etc. We do not know the number of confirmation documents Kroll might attach. So, you should purchase and include stamps for big airmail letters of up to 198g.
Step 5: Send the papers to the insolvency administrator through mail
If your envelope has all the necessary documents and you have added the relevant stamps, send the application through DHL Express to the address below:
“FTX Trading Ltd. Claims Processing Center
c/o Kroll Restructuring Administration LLC
850 3rd Avenue, Suite 412
Brooklyn, NY 11232”
Step 6: Submit your application quickly
Per reports, the insolvency administrator plans to allow users to send PDF documents digitally. However, it would be worthwhile to send it by post. Meanwhile, the court has not stipulated a deadline for application submission.
According to the application document:
“When the court gives a deadline for the submission of Proof of Claims against debtors, all identified creditors will receive a notification of the deadline. They will also receive instructions on how to file their claims.” Nevertheless, it is crucial to apply on time, so you do not have to worry about the deadline.
Meanwhile, two things are uncertain. One is whether the affected users of FTX will ever get their money. Secondly, the amount they might get is unknown. Additionally, the date for payment is still unclear. One can take solace from the Mt.Gox case, which lingered for many years. Presently, affected parties have until January 10th to apply for payment.
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