Are you directed by FTX? This site connects you to law enforcement

Are you a victim of FTX? Better to call the Feds.

Or at least visit Site They set up to distribute information about their criminal case against FTX founder Sam Bankman-Fried.

On Friday, US federal prosecutors filed documents in Manhattan asking for permission to use a website to contact people who have lost money in Manhattan. The Incredible Collapse of FTX. US District Judge Lewis Kaplan, who is overseeing the case, agreed that same day.

According to the FTX bankruptcy filing, November 11th, owe money to more than 100,000 creditors – but that excludes users of cryptocurrency exchanges, FTX and FTX US. Including users in the count brings that number to over a million. The plaintiffs argued that it would be “impractical” to contact all of them at once.

In criminal cases, prosecutors are required to notify victims prior to prosecution or criminal proceedings and to give them sufficient time to testify if they wish to be heard.

“Based on the number of victims giving such notice, the court will decide how the victims will be heard in such proceedings,” Kaplan wrote in his court order.

John Ray, FTX’s current CEO and overseer of Chapter 11 restructuring, told the US House of Representatives Financial Services Committee during a December hearing that “a small number of US clients” were among users.

“We know there are 2.7 million users in the US silo, which again overestimates customer relationships because people have multiple merchant accounts,” Ray said in his testimony. “in [] Silo, we had over 7.6 million users — again, we overestimated actual customer relationships because of the many accounts of any given customer. So we have to get to the bottom of those customer numbers. But it is unlikely that many of them will be able to appear in person in court in Manhattan.

In fact, monthly active user data analysis by Queen Gekko It is estimated that South Korea, Singapore and Japan accounted for 16% of all traffic to prior to its closure. Although the site is configured to automatically detect if a user is located in the US and redirects them to FTX US, the company’s US arm, customers in the states still account for 2% of all traffic.

To be clear, the Department of Justice criminal case v. FTX founder Sam Bankman-Fried in the Southern District of New York completely separate from bankruptcy proceedings that were underway in Delaware. since november.

U.S. prosecutors brought Bankman-Fried with eight felony counts on Dec. 9 (and revealed the indictment on Dec. 13), including fraud and conspiracy to commit money laundering, one day after he was arrested in the Bahamas. He was extradited to the United States on December 21 and has appeared in Manhattan to plead not guilty to all criminal charges he faces.

Federal prosecutors have also charged Caroline Ellison, former CEO of Alameda Research, and FTX co-founder Gary Wang, though both have pleaded guilty and been convicted. Cooperate with investigators In their case against Bankman-Fried.

In the event of FTX’s bankruptcy, there were signs of impatience for those millions of creditors and users.

Earlier this week, the Ad Hoc Committee on FTX Trading Creditors, represented by the law firm Venable, objected to FTX’s request for more time to compile a detailed statement of its assets and liabilities.

FTX initially requested an extension of the November 17 deadline, which pushed the due date back to January 23. On December 21, FTX filed another request requesting that the deadline be pushed back to April 15.

But the ad hoc committee didn’t think the extra time would make a difference.

Attorney Daniel O. Breen wrote in the objection, “And they don’t say much in the motion, the amendment, or any of the pronouncements. There is no reason to extend the deadline in the circumstances.”

He went on to argue that in Celsius’s bankruptcy, the company considered all of the account holders’ claims against all of the debtor’s entities so that it could move forward and leave the decision on which particular company owed the creditor money until later.

O’Brien wrote that a similar solution could be useful in FTX’s bankruptcy proceedings, especially since the company “would likely not be able to provide accurate tables and data under the circumstances.”

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