How to sell an FTX claim: documents, payment and transfer

From the former balance to a claim

After bankruptcy, the right to receive money is addressed within the relevant proceedings. The old exchange balance, claim amount and payment available to be received may differ.

Start by checking the identifier, platform and status. If there is a dispute, a paid portion or multiple claims, disclose this before discussing terms.

The historical balance is explained in the official FTX guidance; that guidance does not determine the terms for using it in a later transaction.

Exactly what is being sold

The agreement defines the rights being transferred. Do not replace that description with a general phrase such as “the entire balance”: it does not show which distributions are included, what has already been performed or whether exceptions apply.

• Check the claim identifier and basis.
• Clarify the scope of future distributions covered by the sale.
• Describe past payments and possible receipts while the transaction is being arranged.
• Check the seller’s representations: they should correspond to facts you can substantiate.

Read the remaining obligations, exceptions and discrepancy resolution process before signing as well.

The FTX SELL transaction process appears in How It Works. Procedural steps for transfers are addressed in Rule 3001(e).

What changes when you sell

The platform describes signing, payment and subsequent filing in Payment and Transfer.

How a transaction with FTX SELL proceeds

1. You provide claim information and details of distributions already received.
2. FTX SELL verifies the data and explains the offer.
3. You read the agreement in advance and clarify any questions.
4. The parties sign the agreed documents on a video call.
5. FTX SELL sends payment in USDT or USDC; you check receipt.
6. After payment, transfer documents are filed in the bankruptcy case.

This sequence follows FTX SELL’s published process. It should also be reflected in your transaction documents.^[1][2]

Before agreeing, reread the transaction process and FTX SELL settlement process.

FTX SELL pays the agreed amount for the rights purchased. This is a separate transaction, not an official distribution or withdrawal of the former exchange balance. Under its published terms, the buyer bears processing and filing costs, with no separate commission deducted from the agreed price. Agree the currency, network and final amount receivable before signing.^[5]

What to check before signing

• Whether claim information matches across all documents.
• Whether past and expected distributions have been accounted for.
• Whether the rights you retain are clear, if exceptions apply.
• Whether the amount, USDT or USDC, network and payment details are recorded.
• Whether the payment timing and confirmation of receipt are clear.
• Whether documentation costs and obligations in response to additional requests are defined.

You can show the documents to your adviser. Do not sign wording you do not understand simply because it is described as standard.

Check that the terms match the published payment process and the specific offer.

What documenting the transfer in court means

Rule 3001(e) provides procedural steps for transferring a claim. For a transfer after a proof of claim has been filed, subject to stated exceptions, the rule describes filing evidence of the transfer and giving notice to the previous creditor.^[3]

The rule’s 21-day objection period runs from the mailing of the notice, rather than automatically from the date the commercial agreement is signed. A filing is not a court guarantee of payment or allowance of any claim.

The starting point for the objection period is set out in Rule 3001(e)(2). Signing the agreement and mailing the court notice are different events.

What to do with a distribution received during the transaction

Do not resolve this by assuming that “everything has already passed to the buyer”. Check the date and rights under the agreement, information from the official proceedings and the team’s instructions. Report the receipt so that it is accounted for in the agreed way.

FTX states that distributions are sent to the holder of record on the applicable record date; separate arrangements for redirecting funds between the parties do not replace that record.^[6]

The recipient rule for the applicable record date is explained in the Distribution Service Providers guidance.

Can you decline?

FTX SELL’s published terms allow you to decline an offer before signing. After signing, the consequences depend on the agreement. Transaction eligibility is not guaranteed before claim review.

If you are ready to continue, start by checking the record or requesting an offer.

The option to decline before signing is described in the FTX SELL FAQs. The consequences of signing must be read in the agreement itself.

Under FTX SELL’s published terms, declining an offer before signing requires no explanation and carries no penalty or deduction. The buyer may also decline following review. After signing, contractual obligations apply.^[5]

Questions