FTT collapsing was bad enough. Now a class action that was supposed to help traders is making things worse. When it’s all said and done, each trader may see around $100 while lawyers take 30–50% of anything recovered. I received a clawback letter today demanding repayment of legit trading payouts. For the record, I never received a single affiliate payout, and I was also owed a final trading payout that was never paid. That was rug-pulled. The real question is simple: what did this lawsuit actually do to help traders? Looks like lawyers won, not traders. Documents shared for awareness. Liability is disputed and no wrongdoing is alleged. I’ll most likely join the group lawyer that @Kellyanntrades is graciously organizing to help traders push back and dispute all of this -- @jmutrades@strieste79
Lesson on all this. A class action lawsuit will simply benefit the law firm involved with their sweet 33% fee. Traders will be lucky if they get $100 back from their owed payouts.
If you have received a clawback notice in the FTT bankruptcy please do not asume you can ignore it. Very important to seek legal advice about this. Things that could happen if you ignore it:
1. They can recover the funds paid via your crypto rise wise or mercury accounts.
2. They can force those entities to pay the funds back and then they could close your account or come after you for the payments.
3. They can obtain a judgement and enforce collection on your assets - property accounts etc.
⚠️⚠️⚠️Please do not assume if you are in another country they can't do this to you. Here is a form letter you can use to request additional time to respond. I would send via email and regular mail.
I am still working on finding an attorney who can help with this.
I also reached out to the PAC lawyer and organizers of the cooalition who initiated this legal effort on behalf of the community with the funds donated by the community to try to recover the losses people incurred in the Fast Track Closure. Will update once I have more information or an attorney referral to share.
For now the letters I have seen state the lookback period is from September 24, 2024. If you were paid out on or after this date you are likely to get a letter. Seems like they have just started to roll out these demands.
A discord server was created for info sharing here: https://t.co/mmxY0QGP7a
*******************************************************
[Your Name/Company Name]
[Your Address]
[City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
DATE
VIA EMAIL TO
[Trustee/Attorney Name]
[Firm Name, if applicable]
[Address]
[City, State, Zip Code]
Re: Demand for Repayment – [Debtor Name], Case No. [Case Number]
Dear [Trustee/Attorney Name],
I am writing in response to the demand letter dated [Date of Demand Letter], which requests the repayment of funds allegedly received as fraudulent transfers in the above-referenced bankruptcy case.
I respectfully request a 30-day extension of time, until [New Date], to provide a formal response to this demand. This additional time is necessary for me to:
1. Seek and retain legal counsel to ensure I am properly advised on my rights and potential defenses under the Bankruptcy Code.
2. Collect and review relevant financial records, including invoices, payment receipts, and banking statements, to accurately evaluate the transactions in question.
Please confirm in writing if this extension is acceptable. If you require a formal stipulation or a more detailed explanation for this request, please let me know.
Thank you for your professional courtesy and consideration of this request.
Sincerely,
[Your Signature]
[Your Printed Name]