Eversheds Sutherland seeks legal protection for overseas FTX clients' assets

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Law firm Eversheds Sutherland has filed a bankruptcy court request to freeze assets previously frozen in the accounts of foreign clients of the bankrupt FTX exchange.

Eversheds Sutherland demands from the judiciaryThe United States protects the interests of foreign users of FTX and proposes to allocate funds due to them from the general bankruptcy estate. According to preliminary data, about $2 billion is the share of clients outside the USA.

“The FTX bankruptcy process is already underway.fourth month. However, the legally important issue of who and to what extent owns assets on the FTX.com exchange has not yet been resolved, ”said a representative of Eversheds Sutherland.

In their appeal to the court, lawyers expressfears that the funds of their clients may be unreasonably used to cover significant transaction costs associated with clerical work and legal costs.

According to the documents availableEversheds Sutherland, various legal and financial advisors to FTX's bankruptcy liquidation panel, have already billed approximately $20 million for work completed in 2022.

Earlier, FTX's interim administration sued FTX Digital Markets and its Bahamian liquidators, alleging they were wrongfully claiming the assets of the cryptocurrency exchange.