Shortly after its launch on July 10, the consumer claims portal for the bankrupt cryptocurrency exchange FTX went offline, prohibiting clients from filing claims online.
The FTX claims agency, Kroll, stated that they are attempting to fix the issue that prevents victims from submitting claims. Affected consumers can still make claims in the interim by mailing them or submitting a digital form on Kroll’s website.
Delaware is handling FTX’s bankruptcy case, and ongoing court cases have clarified the exchange’s financial woes. Sam Bankman-Fried, a former CEO, is accused of 24 fraud-related crimes.
According to the wire fraud accusations, Bankman-Fried used wire transfers to defraud investors by giving them false information about FTX’s financial situation.
The former CEO is accused of conspiring with other FTX workers to mislead investors of billions of dollars in the conspiracy to commit wire fraud allegations.
Other accusations against FTX relate to money laundering and breaking US law regarding dealing in commodities and securities. Sam Bankman-Fried might serve up to 20 years in prison due to all of these.
A trial is scheduled to begin in three months after he entered a not guilty plea to all counts.
FTX Relaunch?
In June, it was reported that the exchange would be revived and relaunched under the leadership of John J. Ray III, the current CEO. The exchange has started accepting bids from interested parties and has participated in early discussions with investors, maybe through a joint venture, even though the relaunch is at least a year away.
The idea was first floated in January 2023. According to sources, existing clients may receive a stake in the relaunched company as payment for their claims as part of the agreement. Relaunching is believed to include rebranding.
According to unnamed sources who came out at the beginning of this month, Taylor Swift reportedly inked a sponsorship agreement with FTX after months of talks.
However, FTX officials finally decided against moving forward and persuaded Bankman-Fried to back out of the $100 million agreement. Swift signed the contract and emailed it to the FTX founder’s email address, but it was several weeks before there was a response.
