Begby Trainor , the bankruptcy commissioner for BetIndex , initiated the process of disbursing funds to the former Football Index clients at the hearing in Jersey Royal Court Today.
The company was originally appointed as BetIndex Insolvency Practitioner at the end of March following the initial Football Index crash and began processing customer claims against the company in April.
In a statement to his former clients last week BetIndex confirmed that the first hearing will take place on May 10 to consider the distribution of lost funds.
The Football Index currently holds £ 4.5 million in the Football Index Player Protection Trust, and Begby Trainor is now responsible for properly distributing this money to former Football Index users.
Since many clients' bets are still active, clients may be entitled to dividends based on their invested rates. in players, and therefore the administrators of Begbies Traynor must now determine the date from which dividends are to be calculated, which may fall from the moment the Football Index operations are suspended until the bet expiration date.
In addition, the firm is tasked with weighing the claims of players who have lost funds in their accounts as a result of the closure of the firm against those who are entitled to dividends, while also identifying clients who will be entitled to receive funds in the account.
BetIndex is left with a surplus of £ 1.3 million, which will be distributed to clients who still have funds in their accounts and with active bets, after accounting for its current outstanding customer debt of approximately £ 3.2 million. ...
The company said that player funds have protection against claims from other creditors, but under their own terms, funds invested in football players through the football trading exchange do not benefit from this protection.
The Football Index crash was a direct consequence of his decision to cut player dividends from 14p to 3p, resulting in many clients losing significant amounts of money, ranging from hundreds to hundreds of thousands of pounds.
After a massive withdrawal by clients and investors, the exchange was forced to enter the administration and his betting license was subsequently suspended UK Gambling Commission (UKGC), while his status as a member of the Betting and Gambling Council (BGC) has also been suspended.
The fallout from the Football Index crash has taken center stage in the government's ongoing review of UK gambling regulations, with the UKGC being criticized for being "asleep at the wheel."
UK ministers were reportedly "deeply concerned" about the collapse of the Football Index, and subsequently announced an investigation on the circumstances of its collapse, while An all-party parliamentary group described it as a "scandal." for harm related to gambling (GRH APPG).
Leigh Day law firm has also been listed as a former Football Index client and the UKGC may be the target of a planned legal action.
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