FTX Appoints Restructuring Firm, Kroll as Its Claims Agents
The letter posted on FTX’s Twitter account announced that the defunct crypto exchange FTX has hired restructuring administration firm Kroll as its claims agent.
Kroll will gather a database of all claims against FTX
It was announced on Nov 17 that Kroll had been appointed to the role of “claims and noticing agent,” responsible for compiling all claims against FTX Trading and 101 affiliated companies.
The Cointelegraph reports that the database lists eight claims, including one for $11.7 million from Singaporean blockchain developer Ethereal Tech. However, more complaints against the group will soon be added.
There are currently eight claims in the FTX Trading case, which amount to $40.9 million, though it is believed that FTX Trading alone has a debt of up to $8 billion to its customers and investors.
In addition to the filing, the firm has compiled a list of interested parties it will update on developments, which is not yet complete and does not include current customers.
Read More: Some Of The Worst Things That Happened Outlined In FTX Bankruptcy Filing
Kroll Restructuring Administration is an indirect subsidiary of Kroll LLC. The firm is one of the largest corporate intelligence companies in the world.
It will take years before the victim get their fund back
There was a flood of requests for money back from crypto users who saw the post.
“ We want our money back,” said one Twitter user.
Others users also commented on similar tweets, saying “Useless press release!! Please back our money even your platform can’t be opened.”
Useless press release!! Please back our money even your platform can't be opened
— divayi irura🍷🍷 (@freedom98308892) November 17, 2022
Read More: Big Players In Crypto Calling For Proof of Reserves For Transparency, But Has Its Limitations
It is estimated that over one million creditors are involved in the FTX case, and securities lawyer Margaret Rosenfeld told Cointelegraph it will be years before any funds are repaid.
“You can’t make creditor distributions until these claims are analyzed. It’s also way too early to speculate on what kind of distribution creditors will get back. Though in mega cases, such as this, full recovery would be unusual,” he said.
For more info regarding Crypto Alpha and NFTs Alpha. Always follow us on Twitter and Instagram.