Law firm Eversheds Sutherland applies for ownership of FTX client assets

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.

Interpretation of this information:

Global law firm Eversheds Sutherland has taken action to legally distinguish assets frozen in the accounts of non-US customers of cryptocurrency exchange FTX from those claimed by debtors in the exchange’s bankruptcy estate. The firm filed an early summary judgement, which argues that the temporary group of FTX.com non-US customers have a clear and unambiguous ownership of their assets under the exchange’s terms of service. The move follows similar actions taken by debtors in other cryptocurrency bankruptcy cases, including Celsius, Blockfi and Voyager.