Investors take Sam Bankman-Fried’s FTX to court

Investors have filed a lawsuit against FTX seeking compensation for their losses.

FTX faces more woes

as authorities in the US prosecute Sam Bankman-Fried and his partners, the investors, have filed a lawsuit demanding early compensation for their losses.

According to a court document published on December 27, the four plaintiffs, namely: Austin Onuz, Cedric Kees van Putten, Nicolas J. Marshall, and Hamad Dar, have filed an antitrust complaint in the United States for declaratory judgment and common law violations. Bankruptcy Court for the District of Delaware on behalf of all FTX customers.

Through the lawsuit, the plaintiffs seek a full refund of their assets held on the collapsed FTX exchange before the company settles its investors and non-subscriber creditors.

a section of trial says:

“In its simplest form, this adverse action is necessary because members of the client class should not be lined up with secured or general unsecured creditors in these bankruptcy proceedings to share solely in the diminished assets of FTX Group and Alameda.” “

Added this:

“Cash and assets received by customers, which have never belonged to FTX or Alameda and do not belong to the property, should be earmarked for customers only, and victimized customers should be given priority over any other cash should be known or recovered by the debtors.”

Interestingly, Zhu Su, co-founder, CEO and CIO of the now-deceased three arrows capital, Also highlighted the current situation through Twitter.

latest in related news reports Is that FTX used North Dimension, a mysterious fake electronics retail company, to send large chunks of customer funds to its subsidiary, Alameda Research. Some of this money was used for purchases Robinhood Shares,

Sam Bankman-Fried is currently facing trial for money laundering, wire fraud and several other charges. If convicted, he could face up to 115 years in prison.

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