REGULATION

Class action lawsuit? Advice for FTX victims: Beware of scamming lawyers, dForce founder: Mt.Gox victims never paid legal fees

share
Class action lawsuit? Advice for FTX victims: Beware of scamming lawyers, dForce founder: Mt.Gox victims never paid legal fees

The following is a Twitter community comment and does not represent a stance.

Well-known anonymous lawyer in the crypto community Wassielawyer, who has been interviewed multiple times on the popular show "Unchained", tweeted that he has some practical advice for the actual small FTX victims. dForce founder Yang Mindao also agreed with his statement, while pointing out that the victims of the Mt.Gox bankruptcy, a large exchange collapse in the past, did not spend a penny on legal fees.

Wassielawyer's Practical Advice for Small Investors

Wassielawyer's advice is as follows:

  1. Wait for more information, but be prepared for a lengthy process mentally
  2. If your country regulates FTX, you can report to the regulatory authorities
  3. Beware of scam lawyers
  4. For your mental well-being, stop dwelling on the amount of loss

Is Sending a Claim Letter Worth It?

A retail investor from the UK asked Wassielawyer whether he needs legal advice or anything he can do. Currently, a lawyer quoted €3,000 to send a letter of claim on his behalf. Is this effective?

Wassielawyer bluntly replied, "No." Ultimately, the bankruptcy asset management entity may send an email requesting people to submit their claims. A "claim letter" is not a legal document; it is just a letter. You can also write an email to FTX yourself.

Check progress at: https://restructuring.ra.kroll.com/FTX/

dForce Founder Yang Mindao: Mt.Gox Retail Investors Did Not Spend Money

dForce founder Yang Mindao stated that this is a practical suggestion. Currently, FTX is undergoing bankruptcy reorganization, and various parties are selling solutions, including class-action lawsuits, mostly aiming to profit from retail investors.

He mentioned that Mt.Gox retail investors did not spend on legal fees; they just waited for the final overall liquidation plan and followed along, with big players leading the way. For ordinary retail investors, hiring a lawyer won't make a difference, as the bankruptcy court will ultimately only approve one plan.

Review Podcast: What Can Taiwanese Victims Do as FTX Goes Bankrupt in the US?

FTX Bankruptcy Reorganization Progress Information

The Delaware court has appointed Kroll Restructuring Administration LLC as the Claims and Noticing Agent for seeking compensation and notifications. To check the progress, visit the following link: https://restructuring.ra.kroll.com/FTX/