Just-In: FTX, SBF Slammed With Class Action Lawsuit; Users Last Chance For Repayment?

In a bid to recover funds from the bankrupt crypto exchange, FTX customers have filed a class action lawsuit against the firm’s top officials. The complaint holds the name of House arrested Sam Bankman-Fried (SBF). Customers seek a proclamation over the FTX’s holdings of digital assets related to them.

FTX, SBF in big trouble?

As per the complaint, FTX’s customer class members don’t want to stand in line with the creditors in the bankruptcy proceedings. This is marked as the latest legal attempt by the customers to lay their hands on the slumped estate assets of the FTX Group and Alameda.

However, a Bankruptcy lawsuit filed in Delaware suggests that the collapsed exchange pledged to keep customer accounts segregated. This is done in order to save them from being misappropriated in the case and let the customers get repaid first.

Coingape reported that SBF used $546 million worth of funds from Alameda Research to secure Robinhood shares. SBF in court testified that the loans from Alameda were used to buy a 7.6% share of the crypto exchange.

Customer seels traceable assets

The class Action Lawsuit is representing over 1 million FTX customers from the United States and other countries. These users are looking for declarations around traceable customer assets that do not land on FTX property. It is being asked the court to detect the traceable property of customers held at Alameda.

The complaint further asks the court to produce a declaration over the funds held in the FTX U.S. account for U.S. customers. It also includes the FTX trading accounts for non-U.S. customers.

It is being reported that if the court forms a decision that it is FTX property then the users would seek a ruling that they have a right of repayment and that too over the creditors.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]