Clients of the bankrupt cryptocurrency exchange FTX have filed a class-action lawsuit against the platform and its former top managers, hoping to claim their dwindling assets. The applicants intend to prove through bankruptcy court in Delaware (USA) that their cryptocurrency assets belong to them, and not to FTX, and therefore they should receive a refund in the first place.
Image Source: Dado Ruvic / Reuters
“Representatives of a client group should not queue with secured or general unsecured creditors in a bankruptcy proceeding just to receive a share in the dwindling assets of the FTX Group and Alameda,” the lawsuit says.
FTX clients are asking the court to grant priority in paying off the debt of the crypto exchange to them, and not to other creditors of the platform. Along with this, the plaintiffs accused former FTX CEO Sam Bankman-Fried (Sam Bankman-Fried) and other top managers of the company and related hedge fund Alameda of deliberate misuse of client assets.
Earlier this month, Bankman-Fried, who was extradited from the Bahamas to the United States, was released on $250 million bail. He will remain under house arrest at his parents’ residence in Palo Alto, California, during the trial. The trial in this case will begin on January 3.
Close business partners of Bankman-Fried pleaded guilty and began to cooperate with the investigation. Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to conspiracy to commit electronic fraud in securities and commodities. The maximum penalty for this crime is imprisonment for up to 20 years.
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