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id: 438

FTX Fraud Case

S.D. Florida
Case number
Now ANY CRYPTO INVESTOR who was damaged directly or “indirectly” by FTX collapse can JOIN CASE!

On 9 November 2022, several bad news came out on the FTX situation:
  • Bloomberg reported that the SEC and CFTC were investigating FTX and the nature of its connections to Bankman-Fried's holdings.
  • WSJ reported that Binance would not move forward with the deal to acquire FTX because of the Exchange's mishandling of customer funds and pending investigations.
  • FTX website said that it was not processing withdrawals.
On this and preceding news, FTX Token (FTT) price dropped over 85% for 3 days and lost over $ 2.2 billion of its capitalization, seriously damaging investors.

The situation was getting worse on November 2, 2022, when the first "deal-breaking" news came out:
  • CoinDesk reported that a significant portion of Alameda Research's assets were FTT tokens. Seeking to prop up Alameda, which held almost $15 billion in assets, Bankman-Fried transferred at least $4 billion in FTX funds, secured by assets including FTT.
  • Several days later on November 7, Zhao said Binance would sell its entire share in the token, FTT, worth at least $580 million, “due to recent revelations that have come to light.”
  • But on November 8, 2022, Zhao announced that Binance had entered into a non-binding agreement to purchase FTX due to a "liquidity crisis" at FTX.
  • The next day the offer was withdrawn.
  • On November 11, 2022, FTX filed for Chapter 11 bankruptcy in the U.S., according to a company statement posted on Twitter. Bankman-Fried has also stepped down as CEO. At the beginning of the year, investors estimated the Exchange at $32 billion, and the wealth of the creator of the exchange exceeded $17 billion.
The situation with FTX damaged many Retail and Institutional investors, not only in FTT but the overall crypto market which lost double digits billions for several days. As several media reported, Investors that could lose money in FTX case include such big names as Tiger Global Management, the Ontario Teachers’ Pension Plan, SoftBank Group, Sequoia Capital, Lightspeed Venture Partners, Temasek Holdings, Tom Brady, and many others.

Taking all representations, announcements, and involved parties' interconnections into account, Investors damaged by the ongoing situation have all grounds to suspect:
  1. FTX and Alameda's Leaders and Shareholders in fraud and breach of fiduciary duties,
  2. Involved parties, including Binance, that could intentionally influence the situation by manipulating the FTX token price.
Case Status
Attorney Investigation
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Price manipulation
Insider Trading
Breach of Fiduciary duty
Suspected Party
Service Provider
Hedge Fund
Security Type
Crypto Asset
Trade Direction
Shock Event Date
08 November 2022
Collecting participants…

FTX Token

FTT is the native token for the FTX cryptocurrency derivatives exchange that provides futures, leveraged tokens, and OTC trading.

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