Numerous investors and market speculators have turned to Twitter to analyse the aftermath of the ongoing FTX crisis, which saw millions of people lose funds and savings on the platform this month.
Joshua Felder, chief executive of the organisation ‘Do Not Pay’ said in a series of tweets last week that investors could follow five possible steps to mitigate some scenarios linked to the ongoing crisis.
With FTX in bankruptcy, it may seem like there is nothing that people can do to get their funds back.
— Joshua Browder (@jbrowder1) November 14, 2022
But, I have spent the weekend brainstorming with lawyers out of the box strategies for people to get their funds TODAY.
Here are five things retail investors can do:
According to the exec, he recommended the following five steps to resolve the issue:
Reversing ACH Deposits: FTX US users can reverse ACH transfers in 60 days after the deposits if activities are fraudulent, pending E/NACHA guidelines.
YouTube: Clients can launch a YouTuber class action lawsuit against influencers advocating FTX. According to Felder, FTX paid select YouTubers $50,000 or more monthly.
Gift Cards: Retailers such as Gamestop offered FTX gift cards, which users can mark as a disputed transaction under the “product not received” Fair Credit Billing Act.
Target FTX entities: Users can also target non-bankrupt FTX entities such as LedgerX LLC and others in civil lawsuits. He added that some claims judges could possibly label entities as liable under “should have known” rulings.
Sue Senior FTX Employees: Those affected could potentially target senior employees and their assets in some states, including California, as many are not protected under bankruptcy. Individuals suspected of fraud could be held liable under CA Corp Code § 17703.04
The news comes after Sam Bankman-Fried’s crypto exchange nosedived into Chapter 11 bankruptcy on 11 November along with 130 linked companies. This has left investors with potentially “decades” of waiting to receive lost funds on the platform, analysts have warned.
Reuters estimates that FTX owes “nearly $3.1 billion” to its 50 largest creditors.
