FAQ

How does tokenization work?

Claimants fill the on-boarding form, send the required documentation and complete the applicable due diligence; then they receive a link where they can review the generated NFT metadata and mint the claim.

The minted NFT represents entitlement to the bankruptcy claim, enforceable by an assignment of claim encrypted in the NFT metadata. The metadata also contains other evidence independently proving the claim without relying on centralized data storage. The new claim owner would need to complete the transfer on the court record if it was not already transferred to a claim administrator.

The tokenization process currently takes one week, and we are working on accelerating it.

How does self-custody or private foundation custody work?

There is tension between the ideal of self-custody and the need for assurances that the claim is not invalid or transferred to another party after minting.

We don't impose an opinionated mandate that custody be in a certain way, but let parties choose and consider risks accordingly.

Self-custody is possible by having the claim minter pre-sign an assignment of claim before tokenization, which could then be used by a new claim owner (if any) to effectuate the formal transfer of claim on file with the court later on.

We are considering another approach for increasing assurances that the minter will not have an invalid or transferred claim. The minter would optionally be assigning the claim to a private foundation in Panama, which secures the rights to the claim and the proper distribution to beneficiaries.

If you have concerns about custody or would prefer a different jurisdiction, please contact us to discuss your custom requirements.

How centralized are these NFTs?

The contracts are upgradeable, at least initially.

Minting requires a signature from us to ensure claims met our on-boarding criteria, including the inclusion of encrypted evidence in the metadata.

Only the NFT owner and admin addresses have unrestricted access (through web3 signatures) to the decrypted evidence backing up the NFT. The other parties need to ask permission to access it if they have a need to know, and may be subject to data loss prevention and just-in-time access technologies. This implies us as an intermediary for sharing the confidential information.

If the above causes a concern for minting your NFT, we are happy to discuss ways to increase decentralization and consider a new, more decentralized collection.

What is a claims agent (e.g., Stretto, Kroll)?

A claims agent is typically a third-party company hired to manage the process of dealing with claims made by creditors against the bankrupt entity. It is confirmed by the court and sends out notices to claimants.

When requested emails sent by the claims agent, make sure to not confuse its emails with emails from claims marketplaces or claims purchasers, which are not necessary.

We are particularly interested in the statement of balances.

Which bankruptcy claims can we deal with?

FTX.

For any other claim, please contact us.