We would like to inform our customers that the conclusion of the Inlock platform claims settlement process is now within sight, the details of which are hereby presented to the affected customers.
According to information published by FTX Digital, the bankrupt stock exchange will officially start its reorganisation programme from the end of February 2025. According to the published information, major payments are expected to be made in the second quarter of 2025. At this stage, there is no concrete information on whether large payments will be made in one lump sum or whether they will be phased in after the indicated deadline. The claims settlement process described below refers to the case where the FTX claim will be settled in one lump sum and the compensation for the Inlock platform will be received by the platform in one lump sum from the intermediary partner involved in the claim. In the event that the procedure changes and the FTX claim is still settled in a staged manner, the following process will be applied in such a way that Inlock’s customers will receive the claim settlement in the shortest possible timeframe, also in a staged manner.
The following notice is intended solely for active customers who have accepted Inlock’s Recovery and Restructuring Plan “Scheduled Release” program.
The Inlock platform has its own cover for 78.6% of the assets affected by the loss, which is not affected by the loss. The level of coverage varies slightly on an ongoing basis in light of the price movements of the various assets. From this coverage, the Inlock platform has already paid out 57.2% to customers accepting the Scheduled Release program until 28 January 2025. The remainder will be paid to all customers with active contracts over the next 7-8 months.
Following the payment associated with the last Scheduled Release round, the Inlock platform will close the Scheduled Release program and officially enter the claims settlement closure phase.
The compensation process starts (DATE OF SETTLEMENT) when the Inlock platform receives its compensation from the party causing the loss. Shortly thereafter, all customers who have opted for Scheduled Release and have an active claim in the program will receive a settlement offer. The offer will include the amount of damages remaining after the Scheduled Release program is completed and the dollar amount of compensation for those damages. This may be higher than the value of the assets at the time of the loss for some assets and lower for others, depending significantly on the change in the price of the asset since the FTX loss occurred. As with the Scheduled Release program, our clients will receive a settlement offer in USDC assets, which will also be paid in USDC.
Within a maximum of 5 days after the acceptance of the settlement offer, the platform will pay the settlement amount to the receiving wallet address provided by the customer, at the same time as the assets affected by the claim are burned from the customer’s account. If at the end of the operation no other assets remain on the customer’s account, the account is closed, at the same time the customer will receive a full statement of account via email for all affected customers. Please keep the statement carefully as you may need it later. After the payment of the settlements, the Inlock platform will consider the claim closed and will not be obliged to pay any further claims in relation to the damage event or the recovery process.
Once the claims settlement process has started (DATE OF SETTLEMENT), customers have up to 90 days to accept the offer and sign the settlement contract. The offer will be automatically withdrawn at the (DATE OF COMPLETION) for clients who do not take up the offer within the indicated deadline.
If, at the (DATE OF SETTLEMENT), the platform still has a pool of assets with payable cover, the platform will complete the conversion and payment of all cover assets to customers in one step before the settlement of the claim, thus completing the Scheduled Release program. For each customer, the claim settlement offer will include the amount of assets that have been converted and paid out with full coverage and the value of the remaining assets affected by the damage.
In September 2024, the Inlock platform developed a unique conversion option called the “Debt Restructuring Offer“, which was accepted by a significant part of customers. The agreement provides full amount settlement of claims for the affected customers through deferred payment. Clients who accept the agreement are not entitled to a settlement with the assets identified in the agreement, as the individual agreement provides for full compensation.
Minimum payout limit for a claim: If the claim bid amount for a particular account does not exceed $10, the platform will not be able to pay it. However, until the claim settlement process has started (DATE OF SETTLEMENT), the internal transfer feature can still be used for such small balances to avoid a total loss of assets.
Accounts with ILK tokens: ILK tokens are not part of the claims settlement process according to the Recovery and Restructuring Plan. Customers with ILK tokens or badges have been able to use the ILK Tokenmarket functionality without disruption since the end of January 2023, and the badge conversion and badge auctioning since April 2023. These allowed our customers to freely sell their Inlock platform specific assets. The platform intends to maintain these services until their possible withdrawal.
DATE OF SETTLEMENT: The date on which the Inlock platform receives the compensation on the basis of which it prepares the settlement offers for customers who have opted for Scheduled Release and whose assets still have to be paid after the release exceed the minimum payout limit.
DATE OF COMPLETION: The claim settlement is completed when the settlement has been paid to the customer who has made all the claims settlement offers. The claim settlement period may take up to 3 months, during which time the offer will be withdrawn for clients who do not accept the settlement offer. Once the claim settlement has been completed, our clients cannot subsequently make use of a claim settlement offer that has already been withdrawn. The platform is not obliged to make a new settlement offer afterwards, nor is it otherwise obliged to pay the amount of the settlement or any other amount other than the amount of the settlement to the customer.
Expected rate of settlement for Schedules Release program: for covered assets, the platform will convert and pay out the assets to its clients at 100% of the asset value under the Scheduled Release program. This is expected to cover 78.6% of assets. For the remainder, an offer will be made based on the value of the assets at the time of the loss, as this is what the platform will receive from the partner that caused the loss. The actual amount is expected to be higher than the value at the time of the damage, as during the recovery process Inlock was able to build up excess inventory through various programs (such as Exit Payout, Reboot platform Migration or Conversion programs), which will be fully used by the platform to increase the value of the damage settlement.
Expected rate of settlement for customers participated in the Exit Payout and Early Payout programmes: the programmes concerned provided for full or specified asset payments in the form of a fixed loss schedule. The different schemes were available between November 2022 and December 2023 with different terms and conditions. By signing the relevant contract, the customer clearly expressed his/her intention to obtain access to his/her assets earlier in exchange for the loss write-off. The contract clearly excludes any possibility for the client to make a claim against the assets withdrawn during the loss write-off!
Expected claims settlement for customers who have opted for the Migration Program: for customers migrating to the Vigiler platform, the migration program is now 100% complete and all customers have started to release their Fee Credit, which the platform has committed to release in full for all customers. The release also includes the Inlock claims settlement programme, on which the Vigiler platform has published a detailed summary.
Settlement in all other cases: the Inlock platform shall not be obliged to pay any other claims during the settlement process, nor shall such claims in any way reduce the settlement of the Scheduled Release customers. The Inlock platform is not obliged to take into account any priority claim in the claims settlement process.
Reimbursement of costs incurred by the Inlock platform and its operating entity in the course of the damage settlement: the Restoration and Restructuring process of the Inlock platform, the operation of the platform and the related legal proceedings have accumulated significant expenses since the Inlock platform damage event. These costs have been self-financed by the platform founders, who have not used any client funding or passed on any costs to their clients in the process. This is the practice that the platform intends to apply to the claims settlement process. Thus, the platform will continue not to pass on any related costs to its customers until the moment of (DATE OF COMPLETION).
The operating company is currently looking into how it can continue to operate the platform following the claims settlement process. Due to the stringent legal requirements and licensing process that have come into force in the meantime, we cannot currently envisage that the platform will be restored to its original service once the damage restoration process is complete, but at this point we do not rule this out. What we would definitely like to retain is the free trading of ILK tokens and the periodic Gold Badge distribution in exchange for the long-term preservation of ILK tokens, as the latter has a significant usage value that is expected to guarantee the long-term preservation of the ILK token value. A number of alternatives are currently under consideration, which include outsourcing the services, or even transferring them entirely to a community-run form.