FTX Customers Wants Priority Reparations, File Lawsuit against Responsible Entities

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A number of government agencies are currently involved in carrying out investigations against the FTX exchange and its founder, Sam Bankman-Fried.

They are collecting all the evidence against both entities so they do not let them get away with their crime. Several agencies have already filed several lawsuits and cases against both entities.

FTX Customers have filed a Class-Action Lawsuit

While the government agencies are busy doing what they feel necessary to do against FTX and SBF, a group of former FTX customers has filed a class action lawsuit.

Their class action lawsuit is against the very FTX exchange as well as its founder, SBF. The report confirms that the group is formed of four plaintiffs representing former FTX customers.

These customers have their funds frozen on the FTX exchanges and they want them back. For this purpose, they have filed a lawsuit against the responsible entities as they want priority access to the funds.

In the lawsuit, the four plaintiffs have confirmed that they were not investors. They were the actual customers of the FTX exchange who had their funds stored on their platform.

Now, the four plaintiffs are demanding that their customers’ funds be returned as soon as possible.

A lawsuit was filed on December 27

The individuals approached the US Bankruptcy Court on December 27 filing a lawsuit against the exchange and its founder. It is the District of Delaware’s Bankruptcy Court where the lawsuit has been filed.

According to the reports, there are four legal companies acting as plaintiffs that have filed a lawsuit against the exchange and SBF.

These plaintiffs are representing a large group of individuals who were once part of the FTX exchange as its customers.

The sources have confirmed that more than 1 million individuals are being represented by the four plaintiffs.

According to the plaintiffs, the entire purpose of filing the lawsuit is to gain access to the priority rights to cryptocurrencies and digital assets.

These assets belonging to the customers are stuck on the FTX.com and the FTX US platforms.

It has been highlighted in the lawsuit that the User Agreement of the FTX brand does not give it any kind of access to the funds of the customers for their own usage.

No matter the circumstances, the FTX brand had no right to access the funds belonging to the customers. Therefore, individuals must be given priority rights so they can access their funds and retrieve them accordingly.

Whether the FTX brand has used the funds in the form of borrowing or to pay off any kind of expenses, it was not supposed to do it.

Therefore, the exchanges have no right to freeze the funds belonging to the customers. They must be released at once otherwise, it would be a breach of several laws.

The plaintiffs have accounted for charges such as the conversion, misuse, misappropriation, and impermissible co-mingling of the customer’s property.

No Payments to Creditors or other Claimants

While adding references from the User Agreement, the plaintiffs have claimed that such funds cannot be given to anyone but the rightful owners.

Therefore, the FTX exchange or its operated entities have no rights to pay off the creditors, claims, or non-customer expenses with the customer funds.

This has made the case even more complicated for the court to handle. The investigation agencies will need to look into the lawsuit as well and they have to go through the claims made in the lawsuit.

The lawsuit has been filed when the investigation agencies are already trying to find the missing $372 million worth of cryptocurrencies from the FTX exchange.

It was established in the earlier stages of the bankruptcy sessions that $372 million were missing from the exchange’s records.

This happened because an exploit had taken place on the exchange right before it filed for bankruptcy. As a result, the hacker was able to steal away 228,523 Ether.

The entire matter has become quite complicated and it is now becoming clearer that it may take a while before the case is resolved.

A number of government agencies are currently involved in carrying out investigations against the FTX exchange and its founder, Sam Bankman-Fried.

They are collecting all the evidence against both entities so they do not let them get away with their crime. Several agencies have already filed several lawsuits and cases against both entities.

FTX Customers have filed a Class-Action Lawsuit

While the government agencies are busy doing what they feel necessary to do against FTX and SBF, a group of former FTX customers has filed a class action lawsuit.

Their class action lawsuit is against the very FTX exchange as well as its founder, SBF. The report confirms that the group is formed of four plaintiffs representing former FTX customers.

These customers have their funds frozen on the FTX exchanges and they want them back. For this purpose, they have filed a lawsuit against the responsible entities as they want priority access to the funds.

In the lawsuit, the four plaintiffs have confirmed that they were not investors. They were the actual customers of the FTX exchange who had their funds stored on their platform.

Now, the four plaintiffs are demanding that their customers’ funds be returned as soon as possible.

A lawsuit was filed on December 27

The individuals approached the US Bankruptcy Court on December 27 filing a lawsuit against the exchange and its founder. It is the District of Delaware’s Bankruptcy Court where the lawsuit has been filed.

According to the reports, there are four legal companies acting as plaintiffs that have filed a lawsuit against the exchange and SBF.

These plaintiffs are representing a large group of individuals who were once part of the FTX exchange as its customers.

The sources have confirmed that more than 1 million individuals are being represented by the four plaintiffs.

According to the plaintiffs, the entire purpose of filing the lawsuit is to gain access to the priority rights to cryptocurrencies and digital assets.

These assets belonging to the customers are stuck on the FTX.com and the FTX US platforms.

It has been highlighted in the lawsuit that the User Agreement of the FTX brand does not give it any kind of access to the funds of the customers for their own usage.

No matter the circumstances, the FTX brand had no right to access the funds belonging to the customers. Therefore, individuals must be given priority rights so they can access their funds and retrieve them accordingly.

Whether the FTX brand has used the funds in the form of borrowing or to pay off any kind of expenses, it was not supposed to do it.

Therefore, the exchanges have no right to freeze the funds belonging to the customers. They must be released at once otherwise, it would be a breach of several laws.

The plaintiffs have accounted for charges such as the conversion, misuse, misappropriation, and impermissible co-mingling of the customer’s property.

No Payments to Creditors or other Claimants

While adding references from the User Agreement, the plaintiffs have claimed that such funds cannot be given to anyone but the rightful owners.

Therefore, the FTX exchange or its operated entities have no rights to pay off the creditors, claims, or non-customer expenses with the customer funds.

This has made the case even more complicated for the court to handle. The investigation agencies will need to look into the lawsuit as well and they have to go through the claims made in the lawsuit.

The lawsuit has been filed when the investigation agencies are already trying to find the missing $372 million worth of cryptocurrencies from the FTX exchange.

It was established in the earlier stages of the bankruptcy sessions that $372 million were missing from the exchange’s records.

This happened because an exploit had taken place on the exchange right before it filed for bankruptcy. As a result, the hacker was able to steal away 228,523 Ether.

The entire matter has become quite complicated and it is now becoming clearer that it may take a while before the case is resolved.

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