Now a group of customers are suing FTX Be the first to recover funds from a failed cryptocurrency exchange. The lawsuit, filed as part of the Delaware bankruptcy lawsuit, seeks a court ruling recognizing that their holdings in the trading platform belonged to them and not to the failed company.
Customers sue FTX and SBF for repayment rights ahead of other creditors
and filed lawsuits against former executives, including – CEO Sam Bankman-Fried (SBF). They want the court to declare that digital assets held on the platform belong to their customers, not FTX or other creditors.
Reuters and Bloomberg announced Bahamas-based FTX filed for Chapter 11 bankruptcy protection in the state on Nov. 11. Applied, traders and investors rushed to withdraw their funds.
In a number of legal efforts to assert its rights to FTX’s assets, its new management promised that customers would be paid back first. The latest complaint states, “Members of the customer class need not stand alongside secured or general unsecured creditors in these bankruptcy proceedings solely to share the diminished real estate assets of FTX Group and Alameda. ”I claim.
After resigning as CEO and being extradited from the Bahamas, Bankman-Fried faces charges in the United States in connection with “fraud on a grand scale,” as federal prosecutors said. there is Among them were allegations that both fiat and cryptocurrency customer deposits were used to support his cryptocurrency trading platform, Alameda Research.
A former employee of SBF is also responsible for the conversion of client-owned assets and has filed a lawsuit.
Besides Bankman-Fried, the client claims that his ex-girlfriend His former CEO, Caroline Ellison, is also suing. They say both should be held accountable for breaching their fiduciary duty to them and unfairly diverting their holdings. Ellison pleaded guilty to fraud charges. , admitted that Alameda had access to special borrowing facilities for FTX customer funds.
It seeks to determine that “cash and assets traceable to a customer that do not belong to other bankruptcy creditors” should be allocated “only for the customer’s benefit.” We aim to represent over 1 million FTX customers in the US and around the world.
And if the court determines that the assets held are his FTX property, the client will have priority over other creditors on his second-largest exchange in the cryptocurrency industry. seek a judge’s ruling entitlement to reimbursement to The industry before it collapsed last month.
Bloomberg, in a separate report citing sources familiar with the case, said the U.S. Department of Justice’s cyberattack on FTX, which resulted in more than $370 million in losses just hours after its bankruptcy, filed in court in November. It is still unclear whether it was an inside job or a hacking incident.
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