2024 FTX Debt Acquisition: FTXCreditor Detailed Process Guide

This article mainly draws from personal experience, with the hope of helping those who were harmed in the FTX collapse event in 2022, by allowing them to choose whether to sell their claims early, in order to gain more autonomy and choice based on their individual situations.

Updated on 2024/07/21

1. Currently, the FTX Creditor claim compensation has reached 100% (subject to variation depending on the claim amount).

2. Compared to the official claim process, you can now recover your lost funds in full three months earlier, and there are no other tax issues.

3. The related interface and process are continuously being optimized by the officials, but the main concept remains the same as the original article.

We recommend that everyone inquire about the quotation and decide whether to sell the claim based on the amount. If you don’t mind, you can use the referral link: https://ftxcreditor.com/sell_claim?afmc=0007GPVR

If the claim exceeds 100%, please don’t ask me for feedback; let me recover a bit of my losses. Q_Q

Hi, I’m DarrenLu. In 2022, I wrote an article titled 只能重新出發了，六年幣圈簡要投資紀錄與檢討 ，in which I summarized my involvement since 2017 and reflected on the lessons learned from the FTX incident.

In the blink of an eye, it’s now 2024. Bitcoin has recently hit a new high, and Solana has risen from $9 back to $200. The approval of a Bitcoin ETF in the United States has brought in a significant amount of USD buying orders. The blockchain industry continues to flourish, and I’ve managed to get back on track.

This article is mainly to share the acquisition process of FTXCreditor, a debt acquisition company, to provide an option for those looking to sell their claims and recover liquidity sooner. I will mainly discuss the acquisition process and payment methods with you all.

What is FTX Debt Acquisition?

As the information about FTX’s liquidation becomes clearer, some institutions began to acquire the debts of these failed exchanges from the time of their collapse. Based on the market information available, these debts are purchased from users at a discounted rate. For example, at the beginning of the market’s collapse, some were acquiring debts at a significant discount of 10%. By November 2023, the off-market acquisition rate for FTX debts reached 50%, and by March 2024, the most recent off-market acquisition rate has reached 97% (based on the bankruptcy price in November 2022).

Of course, not everyone can receive nearly 100% compensation; the compensation ratio depends on the size of your claim amount. If your amount is less than $100,000, the rate usually ranges between 70% — 74%. For those with more than $3 million, it’s possible to achieve an acquisition rate of 92% — 97%.

If your amount is less than $50,000, the rate may be even lower (due to administrative costs such as court fees), and if it’s below $10,000, there’s no need to look further; it’s best to wait for the final liquidation results.

(Update: offers for amounts below $10,000 are between 60% — 70%.)

How to Inquire About Your Debt Offer?

There are numerous debt acquisition agencies in the market, including 117Partners, CHEROKEE, and FTX Creditor, which is the main focus of this article. The basic process involves them asking for your Customer Code provided by FTX and submitting basic deposit and withdrawal records, then waiting for a preliminary evaluation and offer from them. This can all be done online.

Since I did not receive a response from 117Partners, and the experience with CHEROKEE was quite poor, this article will only cover the transaction process and procedures of FTX Creditor. You might want to compare different options as well.

First, go to the FTX Creditor official website and enter your Customer Code. You can directly check the value of your assets there. At this point, you can verify if the information matches what you previously saw on the FTX official website. If everything is correct, you can proceed to fill out the preliminary form.

Filling out the form is straightforward, so I won’t go into detail here. Just provide the KYC (Know Your Customer) information and specific transaction records they request. After submitting the form, you will receive an email informing you that you will receive a reply about the amount of debt they are willing to purchase approximately 12 hours later.

If the offer for your debt acquisition is significantly lower than expected, there’s no need to respond. However, if you find the offer acceptable, you must complete the KYC information within the specified timeframe and schedule an online meeting and transaction time with them (using Calendly to schedule). After selecting a time, you’ll need to enter some basic information. If your English proficiency is not sufficient, you can also request a translator; currently, translation support is available in Chinese, Korean, Spanish, and Portuguese.

After scheduling, you will receive a Google Calendar invitation that includes some precautions and a draft of the document to be signed, as well as a link to the online meeting. The meeting will be conducted via Zoom, so make sure to review the relevant content beforehand.

At this point, the scheduling is complete. The next step is to actually attend the online meeting for the transaction on the specified day.

How is the online meeting for the acquisition process conducted?

I was quite nervous at the time, so I didn’t take screenshots of the process. I was primarily focused on making sure I wouldn’t be scammed again. So, I’ll explain the process in text. If there’s anything unclear, feel free to leave a comment or ask me on X or Instagram .

Before the video conference, you don’t need to prepare any specific documents in advance. Just make sure you have access to the FTX website and your email account ready. Even if you have prepared everything, they will still ask you to log in during the meeting to verify your identity.

1. First, log in to the official FTX Claim website, and then access the account name that needs verification as requested.
2. You’ll be asked to navigate to the account deposit information and the Kroll claim application screen to review all details.
3. Next, you are required to download all deposit and withdrawal records, as well as contract records, from all sub-accounts and send them to the person conducting the interview.
4. Following that, you’ll need to open your email, enter specific keywords they provide, and check if you have received corresponding emails and names of other debt acquisition parties (to ensure you haven’t sold to another entity). For instance, since I had inquired with CHEROKEE before, they specifically asked me to open and review those emails. Emails from Steaker were also specifically inquired about.
5. Once all these checks are almost done, they will review the transaction records you just sent to ensure all records match what you previously submitted. This part requires a bit of waiting.
6. Finally, you will use DocuSign to sign the acquisition agreement that was provided beforehand. Essentially, it involves just a few clicks to complete the signature process.

At this point, the acquisition process is essentially complete, with only the money transfer remaining:

1. They will confirm with you again the address you provided for the transfer. FTX Creditor uses ERC20-USDC for payments, so be absolutely sure of the address before providing it. (It’s fine to use an exchange address; I used one from OKX.)
2. After confirmation, they will ask you to change your FTX account password and remove the 2FA to set it to FTX Creditor’s 2FA.
3. Once the above steps are completed, they will directly transfer USDC to you. The transaction is completed once you confirm receipt.

Here’s a little side note: I found it strange at the moment because changing even the 2FA would mean I’d have no rights to log in at all, which led me to imagine all sorts of scam scenarios.

So, I expressed my concerns, and the person from FTX Creditor was very understanding. They told me it’s okay and that we were almost done, so they transferred the money first, and I changed the 2FA only after confirming receipt of the USDC on OKX. So, in the end, I confirmed the receipt of USDC before completing the last step of changing the 2FA.

OK ! We’re Done. Thank You!

That concludes the acquisition process with FTX Creditor. I hope this information is helpful for those looking to sell their claims. Additionally, it seems that everyone who completes a debt acquisition transaction receives an email with a transaction record that includes a referral link. For every successful transaction made through your referral, you can earn a 1% reward.

However, my goal isn’t to earn this reward. You can use my referral link, and if I receive the 1% reward, just message me, and I’ll return the full amount to you. My main hope is to help everyone get back a bit more if possible. (Though, I’m not clear on the specific process for this, and I don’t have a way to check, so if someone does use it, feel free to ask me~)

Referal Link： https://ftxcreditor.com/sell_claim?afmc=0007GPVR

Written at the end

I believe there are three main reasons to sell debt claims:

1. Your amount is large enough to claim 70% or more.
2. This debt claim actually accounts for a large portion of your total assets, and you want to recover this liquidity for other purposes as soon as possible.
3. You are afraid that the FTX bankruptcy liquidation team will later uncover some issues, so you want to reduce uncertainty.

So you can first ask yourself what the purpose of discounting the money back is now, and plan ahead for what to do after getting it back. Never impulsively use leverage to trade contracts again in an attempt to recoup losses, as rushing to make back losses will only lead to more money lost.

Is now a good time to buy crypto? I’m also not very clear on that, but the funds I’ve recovered will continue to participate in this circle.

If you have any questions, you can leave a comment or ask me on X or Instagram . Wish everyone good luck and make a lot of money!

If this article has helped you and you are sure you want to sell the debt claim: https://ftxcreditor.com/sell_claim?afmc=0007GPVR