Class-Action Lawsuit Filed Against FTX To Recover Lost Assets

Former FTX customers have filed a suit against the company in an attempt to recoup their losses from its collapse.

Four former customers from the crypto exchange filed a lawsuit on Tuesday in a Delaware bankruptcy court in an attempt to get all of FTX’s remaining assets handed over to customers in order to cover their losses. The lawsuit arrives as FTX founder Sam Bankman-Fried faces charges in court alleging fraud.

DOJ INVESTIGATING THEFT OF $372M FROM FTX AMID TRIAL OF FOUNDER

“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,” the complaint argued.

The complaint also argued that the assets used by FTX “never belonged to [them] and that they should not be used to repay the investors.”

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Bankman-Fried appeared in court for the first time after being charged by federal courts in New York over fraud charges. He was ordered to pay a $250 million bail and to stay with his parents during the court proceedings by a judge. He also faces charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The Department of Justice is investigating the hack of FTX, where someone accessed the system and stole $372 million after the company filed for bankruptcy.