FTX Creditors Submit Impact Statements Before Bankman-Fried’s Sentencing, Highlighting Devastating Consequences
The Department of Justice (DOJ) has filed dozens of victim impact statements in the criminal case against Sam Bankman-Fried ahead of his sentencing.
In the filings , victims of FTX’s collapse expressed their anguish, claiming that the event robbed them of financial security, inflicted emotional distress, and eroded their trust in the financial system.
The impact statements were provided by FTX creditors from various parts of the world, outlining their FTX holdings and detailing the profound impact of the exchange’s bankruptcy on their lives.
One victim lamented their precarious financial situation, revealing that as a restitution claimant, they had experienced a complete loss of income for over a year.
“My circumstances are exacerbated by my current unemployment status and ongoing disability recognition process,” they added.
Numerous other respondents shared similar stories, disclosing that they were unemployed due to health issues and heavily relied on the funds they had stored in FTX.
Many victims expressed their trust in FTX based on Bankman-Fried’s previous remarks about the exchange or their belief that U.S.-based crypto exchanges were regulated and considered safe.
However, it should be noted that while FTX.US operated within the United States, the primary FTX entity was headquartered in The Bahamas.
Some victims expressed dissatisfaction with the restitution process, highlighting that they would only be receiving 100% of the value of their assets as of November 2022, rather than the current value based on prevailing crypto prices.
At the time of FTX’s bankruptcy filing, the price of Bitcoin (BTC) hovered around $16,500, whereas it now trades at approximately $65,000.
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