KEYTAKEAWAYS
- Eligible FTX customers must complete KYC, submit tax forms, and register with BitGo or Kraken to receive compensation.
- Stay cautious of phishing emails and fake websites claiming to be FTX. Always use the official FTX portal for transactions.
- FTX’s collapse highlights the need for better crypto industry regulation, transparency, and risk management to restore investor trust.
CONTENT
FTX has officially launched its compensation plan for eligible customers. Learn how to get paid, stay vigilant against scams, and understand the lessons from FTX’s collapse.
Today, FTX officially launched its compensation process according to its Chapter 11 bankruptcy plan. This marks the first time since FTX’s collapse in November 2022 that funds are being distributed to creditors. According to FTX’s official announcement, eligible users will begin receiving payouts starting February 18. The payments are expected to be completed within 1 to 3 business days, depending on the user’s location and the completion of any required steps.
（Source：X）
The payouts will be distributed through FTX’s partners, BitGo and Kraken. BitGo and Kraken will assist with the compensation distribution for retail and institutional customers, respectively. FTX assures that all payout processes will strictly follow the bankruptcy plan’s guidelines to ensure transparency and fairness.
Also Read：
FTX’s $16B Payout: Catalyst for New Crypto Bull Run or Creditor Disappointment?
HOW TO ENSURE YOU GET PAID
FTX has clarified the steps and requirements for eligible customers to receive compensation. To ensure you get your payout, follow these steps:
1.Log into the FTX Customer Portal: Visit FTX’s customer portal at https://claims.ftx.com to update and verify your account information.
2.Complete KYC Verification: You need to complete the “Know Your Customer” (KYC) identity verification to confirm your identity. This step helps prevent fraud and ensures security.
3.Submit Tax Forms: Depending on your country or region, you must submit the required tax forms. This is essential for legal and compliant distribution of funds.
4.Register with BitGo or Kraken: FTX has partnered with BitGo and Kraken. Follow their instructions to complete registration on these platforms to receive your compensation.
Note: Customers who have transferred their claims must ensure their claim is officially processed and recorded before they can participate in the payout. Make sure your claim is listed in the official registry.
SCAM WARNING: STAY VIGILANT
FTX also warns users to be cautious and avoid falling victim to scams. With the launch of the compensation plan, fraudsters may try to exploit the situation by sending fake emails or creating fake websites to steal personal information.
1.Phishing Email Warning: FTX will never ask you to provide wallet details or perform any unsafe actions via email. If you receive such an email, delete it immediately and report it to FTX.
2.Fake Website Warning: Be wary of websites that look like the official FTX portal, especially those claiming to be “FTX Recovery Trust” or similar. Any site asking you to connect your wallet or provide personal information should be treated as a scam.
FTX emphasizes that they will never ask customers to connect their wallets or share private keys. Always use the official FTX portal for all transactions.
FTX’S RISE AND FALL
FTX’s rise was almost legendary in the cryptocurrency industry. Founded by Sam Bankman-Fried (SBF) in 2017, FTX quickly became the world’s second-largest crypto exchange, behind Binance. With its innovative products and keen understanding of user needs, FTX attracted a large number of investors and traders. It also strengthened its position by acquiring other crypto companies, sponsoring sports events, and building a strong brand.
However, behind this success was significant risk. The financial relationship between FTX and its sister company, Alameda Research, created a dangerous situation. Some of Alameda’s assets were backed by FTX’s token, FTT, which meant FTX’s stability depended on FTT’s market performance. When the market fluctuated, FTX became highly vulnerable.
In November 2022, Binance announced it would liquidate its FTT holdings, which triggered panic in the market and led to a liquidity crisis for FTX. As users rushed to withdraw funds, FTX could no longer meet its obligations and eventually filed for bankruptcy.
LESSONS FROM FTX’S COLLAPSE
FTX’s collapse was not just the failure of one company, but a major warning for the entire cryptocurrency industry. The crisis severely damaged global trust in crypto exchanges and raised demands for better transparency and regulation in the market.
Following FTX’s collapse, regulators worldwide began tightening rules for crypto exchanges. Many countries have moved toward requiring exchanges to obtain licenses before operating. Additionally, many platforms have adopted “customer asset segregation” policies to ensure customer funds are kept separate from operational funds.
Although these regulations may challenge the industry in the short term, they will help restore investor confidence and drive the crypto market toward more maturity and transparency in the long run.
Another key takeaway from the FTX disaster is the need for crypto market participants to pay more attention to platform risk management and financial transparency. Whether you’re an institutional investor or an everyday user, it’s important to be cautious when choosing an exchange and to fully understand how the platform operates.
Also Read：
How Do We Choose a Qualified Crypto Exchange? 5 Things We Can Learn From the FTX Judgment
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