FTX's Non-U.S. Clients Lost $1.6 Billion, Has Hired Law Firms to Form Official Bankruptcy Committee

FTX's non-U.S. clients, who are currently losing as much as $1.6 billion in funds, have filed for an official bankruptcy committee and hired a law firm to protect their title to their assets. The committee, led by Eversheds Sutherland attorneys Sarah Paul and Erin Broderick, will have additional advisory and approval rights in Chapter 11 cases, including the right to professional fees paid by the estate. Eversheds Sutherland attorney Erin Broderick said there was an "irreconcilable conflict" between the interests of FTX's non-U.S. clients and other groups of creditors, and that the non-U.S. clients' priority was to determine the timing of FTX's transfer to Alameda due to the different positioning of assets in the terms of service. The $10 billion in funds is client money, not property.