FTX ad-hoc grows to $700k in claims as community prepares for bankruptcy vote

The FTX Customer Ad-Hoc Committee has over 1,400 signups and $700,000 in claims. 

The committee is planning to provide extra details to help members understand the bankruptcy plan voting process. This supplementary information will offer tactical suggestions and comprehensive guidelines for claimants, enabling them to make well-informed decisions and take coordinated actions to safeguard their interests.

If you’re an FTX customer with a total of 1415 claims and a claim value of $700 million, then we hold a significant influence in this community. Every new registration should have received an email by now. Kindly respond, engage, and provide assistance if you’re able to do so.

— Sunil (FTX Creditor Champion) (@sunil_trades) April 3, 2024

A large number of ex-FTX clients with multi-million dollar claims have formed the FTX Customer Ad-Hoc Committee (CAHC). This group holds the most voting power in the FTX bankruptcy proceedings and is focused on addressing major concerns that affect the return of customer assets.

The committee works against proposals that don’t put customers first. For instance, they push back on plans that may result in customers losing the current value of their crypto assets due to theft. They also aim to prevent unnecessary taxes for non-American customers. Furthermore, they advocate for digital methods of distributing compensation instead of checks, which could potentially cause delays and reduce the amount of recovery for customers.

Last week, Sam Bankman-Fried, the ex-CEO and founder of FTX, was given a 25-year prison sentence. Nevertheless, the FTX story continues to unfold with new controversies emerging around Sullivan & Cromwell, a law firm heavily involved in FTX’s business dealings.

FTX customers and investors have criticized Sullivan & Cromwell severely, claiming that the law firm significantly contributed to the conditions leading to FTX’s downfall. The allegations against Sullivan & Cromwell involve potential conflicts of interest and facilitating fraudulent actions that ultimately brought about the exchange’s demise.

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2024-04-03 19:49