FTX ad-hoc grows to $700k in claims as community prepares for bankruptcy vote

The FTX Customer Ad-Hoc Committee (CAHC) represents a group of former FTX customers holding claims in the nine-figure range. This committee has become the largest voting block in the FTX bankruptcy cases, aiming to address significant issues impacting the recovery of customer property.

The committee’s efforts include opposing plans that do not prioritize customer interests, such as ensuring customers recover the current valuation of their crypto assets due to theft, avoiding unnecessary taxes for non-U.S. customers, and advocating for digital distributions of recoveries instead of checks, which could delay and reduce recoveries.

Last week, Sam Bankman-Fried, the former CEO and founder of FTX, was sentenced to 25 years in prison. However, the FTX saga is far from over, with recent controversies surrounding Sullivan & Cromwell, a law firm deeply intertwined with FTX’s operations.

Sullivan & Cromwell has come under intense scrutiny and legal challenge from FTX customers and investors, who allege that it played a significant role in enabling the environment that led to FTX’s collapse. Accusations range from conflict of interest to aiding and abetting the fraudulent activities that ultimately doomed the exchange.