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- ✨ Gate Post New Year Giveaway - Show Your 2025 Crypto Flag and Win $200 Rewards!
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FTX Client Denied Compensation Due to Insufficient Bank Funds
A client of bankrupt exchange FTX was denied compensation because his bank account held less money than his balance on the exchange at its collapse. He provided bank account details for verification.
Request for Proof of Funds
He must prove the origin of funds equivalent to his balance on the failed exchange. This can be done through a transfer from another bank account or a verified account on another crypto exchange.
Widespread Issue
Comments on his post on X suggest this is not an isolated case. One commenter spent four months proving ownership of their funds. Even after succeeding, FTX lawyers repeatedly offered to buy his claim to the funds.
Financial Obligations and Market Impact
FTX owes clients $11 billion, but its new management raised $16.3 billion by leveraging market growth. Exchange users are entitled to 118% of their deposits as of the bankruptcy date in November 2022.
Source: Coinfactiva.com