1/8 In the chaos of the FTX saga, Seth Melamed has consistently...
Lidia Lidia@justLidiaLidia
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Nov 22, 2025
~2 min read
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1/8
In the chaos of the FTX saga, Seth Melamed has consistently stood up for creditors and for integrity. The FTX community will be forever grateful to @Cryptoguy_19 for what he did.
He’s not just a former FTX exec, he’s also an FTX creditor. 👇
In the chaos of the FTX saga, Seth Melamed has consistently stood up for creditors and for integrity. The FTX community will be forever grateful to @Cryptoguy_19 for what he did.
He’s not just a former FTX exec, he’s also an FTX creditor. 👇
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2/8
Seth helped run FTX Japan, one of the very few parts of FTX that was undoubtedly solvent, as even JJ Ray III acknowledged in December 2022, and was able to return customers 100% in kind from February 2023.
Customer assets were kept strictly segregated and the TOS respected
Seth helped run FTX Japan, one of the very few parts of FTX that was undoubtedly solvent, as even JJ Ray III acknowledged in December 2022, and was able to return customers 100% in kind from February 2023.
Customer assets were kept strictly segregated and the TOS respected
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3/8
FTX Japan users got what they actually OWNED. NO DOLLARIZATION, every crypto was returned 1:1.
In his court declaration, Seth describes how he built Liquid, which then became FTX Japan, over years: this wasn’t just a job, it was the business he dedicated his life to.
FTX Japan users got what they actually OWNED. NO DOLLARIZATION, every crypto was returned 1:1.
In his court declaration, Seth describes how he built Liquid, which then became FTX Japan, over years: this wasn’t just a job, it was the business he dedicated his life to.
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4/8
The Court later approved a Key Employee Incentive Plan (KEIP) for FTX Japan.
The KEIP order said: if the Japan sale closed and Seth stayed through closing, his Transaction Award was earned and had to be paid within 60 days. The sale closed on July 26, 2024. The payment deadline came and went.
The Court later approved a Key Employee Incentive Plan (KEIP) for FTX Japan.
The KEIP order said: if the Japan sale closed and Seth stayed through closing, his Transaction Award was earned and had to be paid within 60 days. The sale closed on July 26, 2024. The payment deadline came and went.
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5/8
From court documents it appears the FTX Trust later started insisting on extra conditions that never appear in the KEIP Order or KEIP Terms: demands made in emails, not in the judge’s order. In practice, this has been used as a reason not to pay Seth what he clearly earned. This seems to be a retaliation.
From court documents it appears the FTX Trust later started insisting on extra conditions that never appear in the KEIP Order or KEIP Terms: demands made in emails, not in the judge’s order. In practice, this has been used as a reason not to pay Seth what he clearly earned. This seems to be a retaliation.
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6/8
What was Seth’s “crime”?
He raised that FTX Japan’s bankruptcy was filed without proper board approval, objected to the lawyers’ broad self-immunity in the Plan, and appealed to challenge those releases.
What was Seth’s “crime”?
He raised that FTX Japan’s bankruptcy was filed without proper board approval, objected to the lawyers’ broad self-immunity in the Plan, and appealed to challenge those releases.
FTX Historian@historian_ftx
🚨Former FTX Japan COO Facing Retaliation for Exposing FTX Bankruptcy
FTX Executive Melamed revealed that the FTX Japan bankruptcy was filed illegally 🤯without approval from FTX Japan’s board.
August 24, he objected to the bankruptcy lawyers granting themselves full immunity from misconduct in the bankruptcy Plan.
March 2025, he appealed to the court to nullify the lawyers’ self-granted release and hold them accountable for any misconduct.
Following his actions, the debtors allegedly retaliated by blocking his salary and creditor claims.😥
FTX Executive Melamed revealed that the FTX Japan bankruptcy was filed illegally 🤯without approval from FTX Japan’s board.
August 24, he objected to the bankruptcy lawyers granting themselves full immunity from misconduct in the bankruptcy Plan.
March 2025, he appealed to the court to nullify the lawyers’ self-granted release and hold them accountable for any misconduct.
Following his actions, the debtors allegedly retaliated by blocking his salary and creditor claims.😥
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7/8
FTX Japan users got their money back in full, in kind. Seth could have walked away quietly. Instead, he fought for FTX Japan customers and against overreaching exculpation that hurt creditors. That’s what standing up for integrity looks like.
FTX Japan users got their money back in full, in kind. Seth could have walked away quietly. Instead, he fought for FTX Japan customers and against overreaching exculpation that hurt creditors. That’s what standing up for integrity looks like.
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8/8
On 24/11/2025, Seth is back before Judge Owens.
I hope Judge Owens will protect the rights of one of the few people who has fought with courage and integrity for FTX creditors for over 3 years. Respect to Seth.
On 24/11/2025, Seth is back before Judge Owens.
I hope Judge Owens will protect the rights of one of the few people who has fought with courage and integrity for FTX creditors for over 3 years. Respect to Seth.
