According to the court filing, the number of victims in the FTX case made it “impractical” to rely on more traditional methods of notification.
The United States Attorney’s Office for the Southern District of New York has launched a page on its website appealing to the victims of Sam Bankman-Fried’s alleged fraud at FTX to come forward and informing them about court proceedings.
In a Jan. 6 filing, Assistant U.S. Attorney Danielle Sassoon requested the federal court allow her office to take “reasonable, accurate, and timely notice” to inform fraud victims of crypto exchange FTX while under the leadership of Bankman-Fried. According to Sassoon, the government proposed an “alternative plan” for notifying victims in the FTX case through an online notice, which went live on Jan. 6.
According to the court filing, the number of victims in the FTX case made it “impractical” to rely on more traditional methods of notification “without unduly complicating or prolonging the proceedings in this matter.” Judge Lewis Kaplan approved the request the same day.
The notice on the SDNY’s website informed viewers of the eight criminal counts Bankman-Fried faces in court, as well as the rights victims have under federal law. The latter included the right to be informed of public court proceedings and plea bargains with Bankman-Fried, as well as conferences with the attorney representing the U.S. government.
This is a developing story, and further information will be added as it becomes available.