Eversheds Sutherland obtains an early summary judgement on non US FTX client assets

03/25/2023 18:44 • Blockchain Briefs • 87 views

It is reported that Eversheds Sutherland, a global law firm, has filed an early summary judgment on assets frozen in the accounts of non US FTX clients, thereby legally distinguishing these funds from those claimed by debtors in the bankruptcy estate. Sarah Paul, partner at Eversheds Sutherland, stated that under the terms of service of the exchange, the temporary group of FTX.com non US customers has a clear and unambiguous ownership of the assets. Erin Broderick, a lawyer for Eversheds Sutherland, pointed out that in other cryptocurrency bankruptcies such as Celsius, Blockfi, and Voyager, debtors have sought to determine client property rights early in the proceedings.

Law firm Eversheds Sutherland applies for ownership of FTX client assets

Introduction

Eversheds Sutherland, a global law firm, has filed an early summary judgment on assets frozen in the accounts of non-US FTX clients. This has legally distinguished these funds from those claimed by debtors in the bankruptcy estate.

The Terms of Service of FTX.com

Sarah Paul, partner at Eversheds Sutherland, stated that under the terms of service of the exchange, the temporary group of FTX.com non-US customers has a clear and unambiguous ownership of the assets. Therefore, these assets cannot be treated as part of the bankruptcy estate.

Non-US FTX Client Assets

Erin Broderick, a lawyer for Eversheds Sutherland, pointed out that in other cryptocurrency bankruptcies, such as Celsius, Blockfi, and Voyager, debtors have sought to determine client property rights early in the proceedings. By obtaining an early summary judgment, Eversheds Sutherland ensures that non-US FTX client assets are not under threat.

What is an Early Summary Judgment?

An early summary judgment is obtained when a party successfully convinces the court that there is no need for a trial since the case is based on undisputed facts. This allows the court to make a ruling on the issue without going through the lengthy trial process.

The Importance of Legal Representation in Cryptocurrency

The current landscape of cryptocurrency is complex and continues to evolve. Thus, it is crucial to be adequately represented legally. The actions of Eversheds Sutherland on non-US FTX client assets demonstrate the need for proactive legal representation in the cryptocurrency industry.

Conclusion

Eversheds Sutherland’s early summary judgment highlights the importance of proactive legal representation in the ever-evolving cryptocurrency industry. Clients need to have legal support to protect their assets when navigating the complexities of the industry.

FAQs

1. How important is it to obtain early summary judgments in legal cases?
Early summary judgments can save parties a lot of time and money. If undisputed facts can lead to a ruling, the need for a trial is eliminated.
2. What are some of the other cryptocurrency bankruptcies where debtors have sought to determine client property rights early in the proceedings?
Celsius, Blockfi, and Voyager are some of the other cryptocurrency bankruptcies where debtors have sought to determine client property rights early in the proceedings.
3. Why is it important to have legal support in the cryptocurrency industry?
The cryptocurrency industry is complex, ever-evolving, and presents unique legal challenges. Having legal support can ensure that clients are adequately represented to protect their assets.

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