There are so many victims of the fraud allegedly perpetrated by FTX founder Sam Bankman-Fried federal prosecutors said it would be impractical for them to individually notify all of them. So, late Friday, the judge overseeing the case authorized an alternative method.
Judge Lewis Kaplan allowed prosecutors to establish a website to inform alleged victims of their rights and of the schedule of proceedings in the case.
"If you believe that you may have been a victim of fraud by Samuel Bankman-Fried, AKA "SBF," please contact the victim/witness coordinator at the United States Attorney's office," the website said.
The number of FTX investors and customers who prosecutors have said collectively lost $8 billion is likely to exceed 1 million. Federal law requires prosecutors to contact possible crime victims.
Bankman-Fried was charged last month in an eight-count indictment with defrauding customers of and lenders to the now-bankrupt crypto exchange FTX. He was also charged with defrauding lenders to his privately-controlled hedge fund Alameda Research.
Bankman-Fried pleaded not guilty earlier this week to wire fraud and conspiracy charges that accused him of using FTX like a personal slush fund to make risky investments, political donations and to buy lavish real estate.
Sam Bankman-Fried's ex-girlfriend and the co-founder of FTX pleaded guilty to criminal charges and are cooperating with prosecutors, U.S. Attorney Damian Williams said Dec. 21