FTX denies compensation to users

[NikeFit_7777]

FTX is denying compensation to users whose balance on the exchange was over banked, a customer of the platform said on social network X. Liquidators are demanding bank statements as proof that the user earned the funds. This angered commenters: This makes no sense. Most people here have more money in cryptocurrency than in a bank account," one said.

Another commenter noted that the fraudulent platform continues to commit crimes.

[Husires]

The controversy over FTX will continue. FTX will scrutinize the accounts, will check anyone who violates even a simple text in the terms of use and will try to find arguments to avoid paying. we will hear many complaints from those who cannot appoint a lawyer or negotiate about the return of their money.

[Stompix]

FTX is denying compensation to users whose balance on the exchange was over banked, a customer of the platform said on social network X. Liquidators are demanding bank statements as proof that the user earned the funds. This angered commenters: This makes no sense.

Yes it does, it is made under bankruptcy laws.
The users are creditors, you have to submit proof of how much you have transferred to the exchange, all trades and all history are recorded so they know how much you had on your account:
https://support.ftx.com/hc/en-us/articles/16845301546004-Account-Balances-and-Transactions

If you're going to say no, I had more and I sent you more money than that it's you who needs proof of that!

[KingsDen]

The controversy over FTX will continue. FTX will scrutinize the accounts, will check anyone who violates even a simple text in the terms of use and will try to find arguments to avoid paying. we will hear many complaints from those who cannot appoint a lawyer or negotiate about the return of their money.

I am waiting patiently to draw a lasting conclusion from the outcome of FTX refund process. I know many of the refund process never get completed. At first, they will agree to lay everyone, then they will frustrate the system so that majority will be tired and forget the process. This could be what is playing out here.

[Husires]

I am waiting patiently to draw a lasting conclusion from the outcome of FTX refund process. I know many of the refund process never get completed. At first, they will agree to lay everyone, then they will frustrate the system so that majority will be tired and forget the process. This could be what is playing out here.

If you have violated even a simple condition of the terms of use, or your balance and bank account will not be enough to appoint a lawyer and initiate legal proceedings against them, I do not expect you to get a single dollar.
Payment priority always goes to major creditors, investment funds, companies, and then individuals.

[ABCbits]

This isn't first time FTX repayment process feel inconvenient/unfair to it's victim, especially the individuals. But this request could be troublesome for those who earned their coins or money from informal work sector or bounty (it was good income for some people back then).

[Stompix]

This isn't first time FTX repayment process feel inconvenient/unfair to it's victim, especially the individuals. But this request could be troublesome for those who earned their coins or money from informal work sector or bounty (it was good income for some people back then).

This is only for fiat claims.
The balance in coins is frozen and available, so you can't say I had 100 coins when you had 50, but there are a lot of claims that they have moved cash to FTX in the last few days and that is not reflected in their accounts, so it's quite natural for some to actually ask if they made that transfer at all.

[KingsDen]

This isn't first time FTX repayment process feel inconvenient/unfair to it's victim, especially the individuals. But this request could be troublesome for those who earned their coins or money from informal work sector or bounty (it was good income for some people back then).

This is only for fiat claims.
The balance in coins is frozen and available, so you can't say I had 100 coins when you had 50, but there are a lot of claims that they have moved cash to FTX in the last few days and that is not reflected in their accounts, so it's quite natural for some to actually ask if they made that transfer at all.

Thanks for clarity.
I didn't actually get the full gist. But then, if they froze all the coins in the exchange, same strategy would have frozen all fiats in the platform also. Or is there something I'm not getting right which is why they were unable to free the fiat in the user's portfolio.

[ABCbits]

This isn't first time FTX repayment process feel inconvenient/unfair to it's victim, especially the individuals. But this request could be troublesome for those who earned their coins or money from informal work sector or bounty (it was good income for some people back then).

This is only for fiat claims.
The balance in coins is frozen and available, so you can't say I had 100 coins when you had 50, but there are a lot of claims that they have moved cash to FTX in the last few days and that is not reflected in their accounts, so it's quite natural for some to actually ask if they made that transfer at all.

Thanks for the additional information, screenshot shown by OP didn't mention anything about claim of fiat deposit. In that case, it shouldn't be hard to prove that, unless they changed their bank account since then and doesn't keep their old bank account book/statement.

[Stompix]

~
Thanks for clarity.
I didn't actually get the full gist. But then, if they froze all the coins in the exchange, same strategy would have frozen all fiats in the platform also. Or is there something I'm not getting right which is why they were unable to free the fiat in the user's portfolio.

First is that nobody stops you from claiming 10 million even if your account shows 10$, damages to your portfolio can also be a claim.
The other part is banking transfers that have been issued at the time when the exchange closed down, some have been credited some notes, and some have not been paid despite being cleared from the platform as the bank didn't process them in time before the shutdown.

Thanks for the additional information, screenshot shown by OP didn't mention anything about claim of fiat deposit. In that case, it shouldn't be hard to prove that, unless they changed their bank account since then and doesn't keep their old bank account book/statement.

They do mention a bank statement about the amount transferred so I assumed it's about a deposit that might not have reached the exchange in time to be credited, if the claim is indeed valid.

[Freemind]

Those who did not comply with the laws, those who were not transparent, those who deceived thousands of people, are now asking for transparency, compliance with the laws and banking proof of funds. What FTX is doing to not return the funds is ironic and also an insult, but above all to cover its back. These types of actions and decisions will only mean that many users will not receive their funds back for the reasons we already know. The biggest problem with all this is not what we have already seen, but also the long wait and desperation that users must suffer to have what is theirs.

[Husires]

OpenAI CEO Sam Altman was interviewed by Washingtonpost, main points:

What does this reply have to do with this topic?

Those who did not comply with the laws, those who were not transparent, those who deceived thousands of people, are now asking for transparency, compliance with the laws and banking proof of funds. What FTX is doing to not return the funds is ironic and also an insult, but above all to cover its back. These types of actions and decisions will only mean that many users will not receive their funds back for the reasons we already know. The biggest problem with all this is not what we have already seen, but also the long wait and desperation that users must suffer to have what is theirs.

This may be another reason to choose your trading platform wisely. It takes an average of 10 minutes to send money to them, but if they are not trustworthy, it may take an average of 10 years to get it back.

[Freemind]

~snip~
This may be another reason to choose your trading platform wisely. It takes an average of 10 minutes to send money to them, but if they are not trustworthy, it may take an average of 10 years to get it back.

I think you have made a summary with the perfect words. But you know how this market and FOMO work. For many people it is difficult to pass up some opportunities, and FTX always launched many promotions and possibilities to win something extra, something that always attracts the attention of new users. The problem, as you say, is the time that creditors are going to have to wait regardless of the amounts and the problems they may have to prove where their funds come from.

[NikeFit_7777]

Former FTX top executive Ryan Salame is seeking to have his guilty plea overturned, arguing that U.S. authorities failed to keep promises to stop prosecuting his business partner Michelle Bond for campaign finance violations.

Salame said the prosecutor's tactic of using a third party as leverage to induce him to plead guilty was “improper” and “coercive” and his plea should be invalidated

[joniboini]

^
Is that related to this compensation case? Sounds like it's about former FTX executive vs the court from that description. IIRC Michelle Bond is his girlfriend isn't she?

Anyway, this case reminds me that one time I failed to get my money back from an exchange because of a typo. I do realize it's a silly mistake from my side but it shouldn't take giving all my bank details just to get my $30 money back, not to mention it's just a typo of one letter. It's really hard as an end-user to get compensation easily because the system they offer put too much emphasis on securing their side interest first. CMIIW.