French customers who are victims of FTX can take steps to recover their funds. BFM Crypto discussed it with Margaux Frisque, Associate Attorney at D&A Partners.
The bankruptcy of the FTX giant has left millions of customers in doubt about ever recovering their funds. Among these clients there are also French people, with more or less large sums blocked in FTX. If it is difficult to know how many French people are concerned, more and more initiatives are emerging. Today, more than 1,000 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 file FTX is processed in the USA and the Bahamas, some French customers are asking how to recover their funds. BFM Crypto posed the question to Margaux Frisque, an associate attorney at the firm D&A Partners. Approached by some Frenchmen, the firm specializing in cryptocurrencies is working with an American firm to be as close to the procedure as possible.
Three steps to follow
At this stage, a French customer can consider, among others, three steps. First, he can start a criminal procedure by filing a criminal complaint with a competent judicial authority in France, for example with the help of his lawyer with the Public Prosecutor of a competent judicial court, especially for fraud and breach of trust.
The aggrieved investor can then join a class action in the United States or France, as some collectives are beginning to emerge. Finally, D&A’s litigation department is currently studying the advisability of filing a statement of claim and within what time frame, because the class action is subject to US law. Indeed, on November 11, FTX filed for Chapter 11 protection in the United States.
“Therefore, it would be about the preparation of the remote deposit of a ‘bankruptcy claim’, with local counsel in the appropriate US court when the time comes. To do this, the customer must in principle communicate all evidence justifying the reality of his claim (“proof of claim”): for example screenshots of their accounts and whether they still have access to FTX or a platform online offered by FTX, download their account history to justify the assets that comprise their portfolios,” Margaux Frisque says.
The law office advises its clients to declare their debts, so that they can request the reimbursement of a “small” part of the debt, since if they are not on the list of 50 creditors, there is no other channel for reimbursement.
“According to French law, it is the debtor who lists and presents to the Commercial Court all his creditors when the collective process begins. Obligation provided by article L.653-8 of the Commercial Code. The debt of his creditor must be presented in the list of to the creditors that he gives to the court so that the creditor receives a notification”, specifies the lawyer.
“A small part of their bet”
As far as FTX is concerned, the list of the 50 biggest creditors “will aim” to be completed because FTX has millions of creditors all over the world, the lawyer considers. But while larger creditors may have guarantees to recover their funds, the process can be more complicated for individuals. In the files next to the Ponzi schemes, “investors recover a small 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 Friday, November 11, the platform filed for bankruptcy in the United Statespushing the cryptocurrency market into the red.