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.
Table of Contents
Wassielawyer's Practical Advice for Small Investors
Wassielawyer's advice is as follows:
- Wait for more information, but be prepared for a lengthy process mentally
- If your country regulates FTX, you can report to the regulatory authorities
- Beware of scam lawyers
- 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.
务实的建议。FTX这种破产清算,不要被各路律师、重组专家骗了。
各路神仙兜售方案,包括集体诉讼之类,大部分是想从散户那再割块肉。
MtGox 散户一分钱律师费没花,最后整体清算方案出来,跟着搭车就行,有大户顶着。
对于一般储户来说,不是你请个律师就给你区别对待,最终法院只会同意一个方案。 https://t.co/rzYhCaPnxB
— Mindao (@mindaoyang) December 2, 2022
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/
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