4/◉ Now let's touch on preference exposure. In bankruptcy law, a preference refers to #FTX withdrawals between 8/12/22 and 11/11/22 (dates under Bankruptcy Rule 9006). These payments may be recaptured or subject to clawback for equitable distribution among all creditors.

5/◉ By filing a proof of claim, you may help protect yourself against preference risk by establishing your position as an international customer entitled to full recovery of your property. But how?

6/◉ For international accounts, the trust argument may prevail, or not, but failing to file a proof of claim might limit your ability to argue for unique treatment of your assets, if your account is misclassified. Filing a POC allows you to protect your position.

7/◉ But there are jurisdictional risks for filing a proof of claim. By filing a POC you are consenting to the jurisdiction of the bankruptcy court to adjudicate not only claim matters but claims the debtor may have against you.

8/◉ A foreign #FTX customer generally is not subject to action by a US court. "Can't touch me. F**k the bankruptcy court!" Hold up, bruh. What about a creditor who obtained a Bahamian KYC withdrawing massive amounts of funds after the bankruptcy petition date?

9/◉ If that creditor files a POC for that claim (where money left in exchange exceeds any preference amount) and/or files a POC for a legit account in their name, they are consenting to US jurisdiction to hear any action against them for violating the automatic stay, and more.

10/◉ It gets better. If they lie or misrepresent on the POC, they are consenting to US jurisdiction for penalty of perjury (fined up to $500,000, imprisoned up to 5 years, or both). This creditor may want to think twice about filing a POC. Everyone else, you're probably OK.

11/◉ Also keep in mind that filing a POC waives your right to a jury trial. This really is important if you have massive preference exposure. Otherwise, probably not a big deal.

12/◉ Ultimately, while there are considerations about consenting to US jurisdiction, the benefits of filing a proof of claim typically outweighs the risks. Plus your personal information is still kept private on the court docket. Your POC remains anon, for now.

13/◉ Bankruptcy law is intricate, and the landscape is even more complex with it intersects with the crypto world. Always consult with a legal advisor to understand your specific situation and risks.

@nicholashall That would be very helpful to many people as the wording used by the US law is like reading rocket science I for one do not have a clue how to do a POC or file one

@nicholashall Estaremos atentos sobre como presentar el POC. Gracias por el aporte, muy valioso.