FTX Notes To Creditors That Claims Term Has Not Been Determined

Key Points:

• FTX notices email creditors to a wide range, including customer code and required assets.
• The email highlights that when the court sets a deadline for complaints. All known creditors will be notified of the deadline and instructions on how to submit proof of a claim or interest.
• FTX founder Sam Bankman-Fried faces new Chinese bribery allegations.

FTX has emailed creditors on a large scale, including customer codes and claim assets to emphasize that the deadline for claims has yet to be determined by the court.

The bankrupt crypto exchange identified customers with accounts with positive net balances as of November 11, 2022, using a unique customer code provided in each email.

The body of the email emphasizes that the court has not set a deadline for filing a lawsuit or proof of interest against the debtor. When the court sets the deadline, all known creditors will be notified of the deadline and instructed on how to file a claim or statement of interest of evidence.

Meanwhile, on March 28, according to US federal officials, the accounts of suspected hedge fund Alameda Research – owned by Mr. Bankman-Fried – were ordered to be frozen by Chinese police around November 2021.

The US Department of Justice alleges that Bankman-Fried and several other individuals transferred at least $40 million in cryptocurrency to at least one Chinese official to “influence and persuade” them to stop freezing several accounts.

Bankman-Fried and his associates are suspected of using “multiple methods” to reopen accounts containing a total of about $1 billion in cryptocurrencies. However, these measures could have been more successful. The prosecutor also considers this to be the reason that motivated Bankman-Fried to commit bribery.

On Tuesday, US District Judge Lewis Kaplan also approved changes to Bankman-Fried’s bail restrictions centered on his use of electronic devices. Bankman-Fried can no longer communicate with former FTX or Alameda Research (FTX’s trading arm) employees unless counseling is present or using any “encrypted calling or messaging application, including but not limited to “Signal”.

There is a pre-trial conference set for 11:00 a.m. ET on March 30.

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