It is true that the entire crypto industry has suffered from a major loss due to the FTX crash since November. However, it is the holders of the FTX Tokens (FTT) that have suffered the most.
They have paid the biggest price for being the holders of the FTT and being part of the FTX brand. Since the downfall of the exchange, the entire FTT investment community has been in unrest.
They want answers and have made several accusations against the FTX brand. They have accused the FTX exchange of being involved in securities laws violations.
Schall Law Firm to Investigate the Matter
Therefore, a major litigation firm working for the rights of the shareholders has taken up the responsibility of looking into the matter.
According to the reports, the litigation firm is going to investigate the entire matter to establish whether FTX was actually operating in violation of the securities laws or not.
The investors will be required to cooperate with the firm while it carries out its investigation against the FTX brand. It will be needing all the information it can get to know more about the investors’ claims.
The law firm will have to gather as much evidence as possible against FTX so it can prove whether it was actually breaching the particular laws or not.
Many Investors have lost their Funds
No matter the claim or the situation of the FTX exchange, it is a fact that many people have lost a great fortune to the crash.
According to estimations, more than a million investors have ended up losing their funds to the FTX crash. They have lost their savings, hard-earned incomes, and so much more to the FTX debacle.
However, the stance of the investors against FTX is that it is nothing more than a financial fraud. As the platform was committing financial fraud, it must be held responsible.
If that is the case, then there is a possibility that the investors will be given their investments back. They will finally end up receiving the funds that were rightfully theirs in the first place.
The investors who entrusted their funds to FTX are blaming the exchange’s founder (Sam Bankman-Fried) for committing financial fraud.
Therefore, Schall Law Firm is going to carry out its investigation and look into the statements made by the exchange and its founder.
It is to be established whether the statements made by the exchange officials were correct or misleading.
The firm is also going to investigate if FTX had failed to disclose the information considered crucial about the nature of FTT.
Statement by Schall Law Firm Officials
The officials at Schall Law Firm have confirmed that they are already aware of the wrongdoings of the FTX exchange.
They are also aware of how the Alameda Research platform was involved in the entire matter. They are already aware of the cracks that were giving clear indications that the crash would eventually happen.
Whether it was the FTX exchange or the Alameda Research trading platform, both caused the demise of the FTX Token.
Given the current circumstances, it is almost impossible that the token would recover from the loss or the crash at all.
Investors are required to Share Information
The law firm has also announced that the investors who were part of the FTT, FTX, or Alameda Research, have to provide information from their end.
They have to provide all the information they can involving the FTT and the history of the transactions.
After gathering all the necessary information and evidence, the law firm will proceed with filing a class action.
If the law firm is able to provide the court with enough evidence, then there will be very high chances of filing and winning the class action against FTX.
This would allow the users to recover the funds they lost to the crash.