Account holders at FTX have filed a class action lawsuit claiming the assets being held belong to them and not the exchange.
FTX founder Sam Bankman-Fried leaves following his arraignment in New York City on December 22, 2022.to segregate customer accounts and instead allowed them to be misappropriated and therefore customers should be repaid first, according to the lawsuit filed in U.S. Bankruptcy Court in Delaware.
"Customer class members should not have to stand in line along with secured or general unsecured creditors in these bankruptcy proceedings just to share in the diminished estate assets of the FTX Group and Alameda," said the complaint.U.S. Attorney Damian Williams speaks during a news conference about the criminal charges filed against FTX founder Sam Bankman-Fried.halted withdrawals last month and filed for bankruptcy after customers rushed to pull their holdings.
Authorities arrested Bankman-Fried in the Bahamas earlier this month. He has since been hit with multiple charges from the Southern District of New York and the Securities and Exchange Commission.The founder of FTX was flown to New York last week after deciding not to challenge his extradition. The proposed lawsuit, which wants to represent more than 1 million FTX customers in the United States and abroad, seeks a declaration that traceable customer assets are not FTX property. Markets
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