Customers File Class Action Lawsuit Against FTX and SBF

December 28, 2022

Story- Jai Pratap

FTX customers have filed a class action lawsuit against the defunct crypto exchange and its top executives, including Sam Bankman-Fried.

FTX customers are seeking preference over other creditors on whatever is left of FTX assets.

The lawsuit claims FTX promised to seggerage customers accounts but instead allowed them to be misappropriated and therefore customers should be repaid first.

Federal prosecutors have called FTX collapse “a fraud of epic proportions” that used customers’ funds to make personal gains.

The class action lawsuit wants to represent more than 1 million FTX customers in the United States and other countries.

Lawsuit claims assets of FTX and Alameda that are traceable to customers do not belong to them and customers should have a first right on them.

SBF, who is currently under house arrest, is also named in the class action lawsuit.