A group of lawyers in Brazil is already studying like the FTX bankruptcy filingwho joined Chapter 11 last Friday (11), affects Brazilians who lost millions in cryptocurrencies deposited with the broker. As revealed by livecoins, a group of Brazilian victims of FTX is already meeting through Telegram in order to share information that can help the community. Many crypto investors turned to FTX after trusting the company to be reliable and well managed by Sam Bankman-Fried, the CEO, and his partners. Apparently, a series of dishonest practices were taken by the leaders. As the brokerage has declared bankruptcy in the United States, it is important that investors pay attention to important details in the quest to recover their funds.
FTX bankruptcy petition affects Brazilians who lost cryptocurrencies at the exchange, according to lawyers studying the case
The group of lawyers formed by Artêmio Picanço, Boaz Bezerra and Júlio Costa Neto is already studying the consequences of the end of FTX. With several clients with losses around R$ 5 million with the collapse of the platform, the lawyers talked to Livecoins to explain how they are studying the case. they believe that the end of FTX is a clear case of resource mismanagement🇧🇷 According to the lawyers, one of the most relevant details is in the platform’s terms of service, which does not treat clients’ coins as assets that belong to them.
“FTX’s meteoric fall indicates a misuse of funds. The terms of service indicate that FTX does not treat digital assets in user accounts as its own. This means that cryptocurrencies in customer accounts are not owned by FTX and cannot, or should, be loaned to the exchange.”
The lawyers recalled having evidence that the brokerage firm had been using clients’ currencies in high-risk investments🇧🇷 If so, the CEO of FTX could be arrested on criminal charges.
“There are indications that FTX was using client assets in high-risk investments. The Department of Justice and the US Securities and Exchange Commission (SEC) are already investigating the case and, if it is proven misappropriation of client funds, former CEO Sam Bankman-Fried, and other exchange executives, can respond to lawsuits. criminals.”
Lawyers are working to understand how best to proceed in the case. They recommend for investors hoping to go to court that they start documenting brokerage balances and screens.
“We are working hard both in Brazil and in the US for the return of customer values. It is important to point out that: investors must do evidence, record their balance, make csv files as a way to provide subsidy for a future lawsuit here or a future class action in the US.”
FTX secured creditors could be key to asset recovery
The US legislation is not related to the Brazilian one, so the group of lawyers is evaluating the bankruptcy terms and studying the best way to go to court to recover the amounts for their clients. Thus, they revealed to Livecoins that one of the keys may lie in the issue of FTX’s secured creditors.
“In the US, in bankruptcy cases, there are unsecured creditors and “secured” creditors. Secured creditors are entitled to recover their claims in the bankruptcy process because they have collateral. The unsecured, on the other hand, only at the end, share the residual values after the determination of the credits of the “secured creditors” and the attorney’s fees of the company’s lawyers.”
Even with the information still at an early stage, given that the collapse of FTX has occurred quickly in recent days, lawyers believe that the terms of the platform can help investors. To be an eligible creditor to receive amounts, however, they remind you that it is important that the broker’s clients seek qualified legal help to avoid further losses.
“While it is too early to say conclusively, the good news is that FTX’s terms of service classify users as the sole owners of cryptocurrencies, which theoretically makes them secured creditors. Even if this is not the case, FTX stated that there will be sufficient funds to reimburse unsecured creditors, without, however, specifying what these eventual residual values will be. What is certain is that those who wish to recover their investments need to seek qualified legal advice in order to avoid further losses.”
After filing the bankruptcy of the brokerage group, SBF left the position of CEO of FTX.
