U. S. is looking for FTX victims
2023.01.06 16:09
U. S. is looking for FTX victims
Budrigannews.com – A page on the website of the United States Attorney’s Office for the Southern District of New York has been created to encourage the alleged victims of Sam Bankman-Fried’s fraud at FTX to come forward and inform them of the upcoming court proceedings.
Assistant U.S. Attorney Danielle Sassoon asked the federal court to let her office give alleged victims of fraud from crypto exchange FTX “reasonable, accurate, and timely notice” while Bankman-Fried was in charge. Sassoon claims that the government came up with an “alternative plan” to notify FTX victims via an online notice, which went live on January 6.
In the FTX case, the number of victims—more than one million creditors—made it “impractical” to use more conventional methods of notification “without unduly complicating or prolonging the proceedings in this matter,” according to the court filing. The request was approved the same day by Judge Lewis Kaplan.
The notice stated, “Please contact the victim/witness coordinator at the United States Attorney’s Office if you believe that you may have been a victim of fraud by Samuel Bankman-Fried, a/k/a ‘SBF.'”
The eight criminal charges Bankman-Fried faces in court and the rights victims have under federal law were made clear to viewers in the notice on the SDNY website. The latter included the right to be informed about public court proceedings, Bankman-Fried’s plea deals, and meetings with the US government’s attorney.
Bankman-Fried pleaded not guilty to all of the charges against him in his case after he was taken into custody in the Bahamas and extradited to the United States. The former CEO of FTX has been charged by the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission, and Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have already admitted to related charges.
Separate from the criminal cases against Wang, Ellison, and Bankman-Fried, bankruptcy proceedings are also ongoing, and the next public hearing is set for January 11. The U.S. Department of Justice was about to seize shares of Robinhood that were connected to FTX Group worth more than $450 million. BlockFi, Bankman-Fried, and others have filed legal claims for these shares.
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