Image default

FTX Customers File Class Action Against Defunct Exchange, Top Execs: Report

FTX and some of its former top leadership including have been slapped with a class action lawsuit by customers on December 28, according to the latest Reuters report.

The customers have sought a declaration that FTX’s holdings are not the company’s property. The same goes for the traceable customer assets held at Alameda.

  • The lawsuit, which was filed in the US Bankruptcy Court in Delaware, mentioned that the now-defunct crypto exchange “pledged to segregate customer accounts” and rather enabled them to be “misappropriated” while adding that customers should be repaid first.

The complaint read,

“Customer class members should not have to stand in line along with secured or general unsecured creditors in these bankruptcy proceedings just to share in the diminished estate assets of the FTX Group and Alameda.”

  • The lawsuit wants to represent over 1 million FTX customers in the United States and abroad.
  • It also seeks a declaration from the court that funds held in the accounts of the crypto exchange’s US affiliate – FTX.US – as well as in FTX Trading accounts or other traceable customer assets are not the firm’s property.
  • If the court does come to a conclusion that the said property belongs to FTX, then the customers seek a ruling which prioritizes them before payment to the creditors.
  • Last month, FTX halted withdrawals and filed for bankruptcy after its hole in the balance sheet was revealed.
  • Bankman-Fried was arrested in the Bahamas. SBF, who had stepped down from his role following the collapse, was charged with wire fraud, securities fraud, money laundering, etc.
  • He has since been extradited to the US and released from jail on a $250 million bond.

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Source link

Related posts

Inu & meme equivalent to Cleverminu token launched with 1 trillion IMO sale

Marine Savard

Bitcoin Seals House Purchase Deal in Portugal’s Braga, Makes for First Real Estate Sale With Crypto

Marine Savard

MATIC Price Prediction: Polygon Near Key Juncture, Can Bulls Save This Support?

Marine Savard

One Last Extension? Mt. Gox Registration Deadline Pushed Back

Marine Savard

Ledger & iPhone Co-Creator Together Will Launch The New ‘Stax’ Crypto Wallet.

Marine Savard

Credit Suisse Receives 50 Billion Swiss Franc Bailout From Swiss National Bank – Bitcoin News

Marine Savard

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More