The former bosses of the bankrupt cryptocurrency exchange FTX are suing for the same cash-flow claim, but hoped to claim their dwindling assets. The applicants intend to prove to him through bankruptcy court in Delaware (USA) that their cryptocurrency assets belong to them, not to FTX, so they should receive a refund.
Source of the image: Dado Ruvic / Reuters.
Propriets from the client group shouldn’t wait for mutually accepted, non-unsecured creditors in the case of a bankruptcy, whose members are a shareholder, the lawsuit says.
The FTX clients are asking the court to get priority in paying off the debt of the crypto exchange to them, not to the other creditors of the platform. Apart from that, the plaintiffs accused former FTX CEO Sam Bankman-Fried (Sam Bankman-Fried) and other top managers of the company and related hedge fund Alameda of deliberately stealing clients’ assets.
Last month, Bankman-Fried, who was extradited from the Bahamas to the United States, was released on a $250 million bail. His father, Palo Alto, is in custody while the trial is a runoff. The trial begins on the third of January.
The close business partners of Bankman-Fried pleaded guilty and began working together in an investigation. Unlike the former Alameda Research CEO, Caroline Ellison and the FTX co-founder Gary Wang admitted conspiracy to commit electronic fraud on securities and commodities. The maximum penalty for this crime is a prison sentence for up to 20 years.
If you notice an error, select the one with the mouse and press the CTRL and EARNING.