French clients who are victims of FTX can take steps to recover their funds. BFM Crypto discussed this with Margaux Frisque, associate lawyer of D&A partners.
The bankruptcy of the FTX giant has plunged millions of customers into doubts about ever recovering their funds. Among these customers there are also French, with more or less high sums blocked on FTX. If it is difficult to know how many French people are interested, more and more initiatives are springing up. Today more than 1000 French people have joined the Telegram group FTX – Mutual Aid Collective EN
As a reminder, the fallen giant has $1.24 billion in cash, while the platform already owes $3.1 billion to its 50 biggest creditors.
While the FTX is processed in the United States and the Bahamas, some French customers are wondering how to recover their funds. BFM Crypto put the question to Margaux Frisque, associate lawyer of the firm D&A partners. Approached by some French people, the cryptocurrency specialist company is working with an American company to be as close as possible to the procedure.
Three steps to follow
At this stage, a French customer can consider, among others, three steps. First, he can initiate criminal proceedings by filing a criminal complaint with a competent judicial authority in France, for example with the help of his defense attorney at the public prosecutor of a competent judicial court, in particular for fraud and breach of trust.
Then, the aggrieved investor could join a class action in the United States or France, to the extent that some collectives begin to emerge. Finally, the D&A Litigation Department is currently studying whether and within what time frame to make a statement of claim, because the collective proceeding is subject to American law. Indeed, on Nov. 11, FTX was placed under Chapter 11 protection in the United States.
“It would therefore be a question of arranging the remote deposit of a ‘bankruptcy filing’, with a local attorney in the appropriate US court when the time comes. To do this, the customer must in principle communicate all the evidence justifying the reality of his complaint (“Proof of complaint”): for example screenshots of their accounts and whether they still have access to FTX or an online platform provided by FTX , download their account history to justify the activities that include their wallets”, indicates Margaux Frisque.
The law firm advises its clients to declare their debts, in order to be able to claim repayment of a “even small” part of their debt, because if they are not on the list of 50 creditors, there is no other repayment channel.
“According to French law, it is the debtor who lists and submits to the commercial court all his creditors at the beginning of the collective procedure. An obligation provided for in article L.653-8 of the commercial code. The debt of his creditor must appear on the list of creditors that he delivers to the court so that the creditor receives a notification”, specifies the lawyer.
“A Small Part of Their Bet”
As for FTX, the list of top 50 creditors “will be destined” to be completed because FTX has millions of creditors worldwide, the lawyer believes. But while major creditors may have guarantees to recover their funds, the procedure could be more complicated for individuals. In files close to Ponzi schemes, “investors recover a tiny part of their investments”, slips Margaux Frisque.
As a reminder, FTX was considered the second largest cryptocurrency exchange, with a valuation of $32 billion. But on Friday November 11 the platform filed for bankruptcy in the United Statespushing the cryptocurrency market into the red.