When a cryptocurrency exchange declares bankruptcy, investors with funds on the platform may be left with outstanding claims that need to be resolved. This can be a long and complex process, but there are options available to investors who want to take action and potentially recover some of their losses. In this blog post, we'll explore two options for dealing with a cryptocurrency exchange bankruptcy claim.
Option 1: Hold on and wait through the litigation period
The first option for investors with cryptocurrency exchange bankruptcy claims is to simply hold on to their claim and wait for the litigation period to end. During this time, the bankruptcy trustee will investigate the claims and work to distribute any assets that are recovered to the creditors. This process can take several years, and there is no guarantee that investors will recover their full amount.
While this may be the most straightforward option, it may not be the best one for investors who want to take action quickly and potentially recover some liquidity on their claim.
Option 2: Get liquidity on your claim by selling at a discount through a claims broker
The second option for investors with cryptocurrency exchange bankruptcy claims is to sell their claim at a discount through a claims broker. This can provide investors with immediate liquidity on their claim, rather than having to wait for the litigation process to end.
One such claims broker is Claimsfix, a premier place to get an assessment on your claim, compare across different claims and buyers, and begin the process of selling. By using Claimsfix, investors can get a fair market value assessment of their claim, compare offers from multiple buyers, and complete the sale of their claim in a matter of weeks, rather than waiting for years.
While selling your claim at a discount may not recover the full amount of your losses, it can provide you with immediate liquidity and allow you to move on from the bankruptcy claim.
In conclusion, investors with cryptocurrency exchange bankruptcy claims have two options:
Hold on and wait through the litigation period, or sell their claim at a discount through a claims broker like Claimsfix. While each option has its own benefits and drawbacks, investors should carefully consider their goals and priorities before making a decision.