The collapse of the crypto exchange FTX has legal consequences for the founder of the company. According to court documents, a class action lawsuit has been filed in Miami against Sam Bankman-Fried. The interest-bearing cryptocurrency accounts offered by FTX should not have been sold due to the lack of a license in the United States, the lawsuit said.
In addition to Bankman-Fried, the plaintiffs are also seeking damages from football superstar Tom Brady and tennis player Naomi Osaka. The two would have supported FTX as advertising characters. None of the three were initially available for comment. The FTX bankruptcy also gets politicians on the ground. The US House of Representatives is planning a hearing on the matter. In addition to Bankman-Fried, representatives of competitors such as Binance must also be heard.
FTX filed for bankruptcy protection in the US last week after customers pulled out en masse in response to the secret move of $10 billion in deposits. However, the liquidators of an FTX subsidiary in the Bahamas describe the parent company’s U.S. request as illegitimate in court documents.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
