Customers and claimants of the collapsed crypto exchange FTX are being warned against responding to phishing emails. These scam communications falsely instruct recipients to take action regarding their FTX claims. Stakeholders are advised to avoid using links contained within such emails and to refer directly to the official FTX claim portal for accurate status updates and claim management.
The crypto world was shocked when FTX, which had been a giant in the coin trading market, went down in November 2022. When the company went bankrupt, it revealed a web of scams that left more than a million customers wondering what happened to their savings. Louis d’Origny was one of those impacted. He lost a lot of money but was able to turn the situation into a good business chance.
Recovery attempts
Louis d’Origny and Ramnik Arora, who used to be a high-level manager at FTX, took advantage of the crash. d’Origny started four business funds and bought bankruptcy claims worth about $31 million from other bankruptcy victims. In addition, their project, FTX Creditor, made it possible for an extra $60 million worth of claims to be bought. The goal was to provide a clear and quick way to buy and sell claims, especially for people with less than $100,000 on the exchange.
It’s been hard to understand, risky, and guesstimate how much FTX bankruptcy claims are worth on the market. D’Origny’s businesses have been able to survive these rough seas by assuming that creditors could get back 25 to 30 cents on the dollar. This estimate is complicated by the fact that the businesses are still in bankruptcy procedures and the crypto market is always changing.
Recent signs from FTX say that creditors who have losses that can be proven might get their full investments back. This news is a ray of hope, even though people are still angry about how crypto assets are valued, since their prices have changed a lot since the exchange went down. The rise in crypto prices, especially for assets like Bitcoin and Solana, has shown how unstable digital currencies are and how hard it is to handle bankruptcy claims in this setting.
