FTX Trading – FTX Investors May Have Legal Claims
Kehoe Law Firm, P.C. is investigating whether FTX Trading Ltd (“FTX”) (Native Token: “FTT”) or certain of its executives, including, but not limited to, Sam Bankman-Fried, violated federal securities laws.
Purchasers of FTX securities, such as FTT tokens or FTX’s high-yield bearing accounts, who have suffered financial losses are encouraged to contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected], to discuss the securities investigation or potential legal claims.
FTX operates a cryptocurrency exchange that allows investors to trade cryptocurrencies, purchase FTX’s native token FTT, and deposit other cryptocurrencies in high-yield bearing accounts in exchange for a fixed amount of interest.
On October 14, 2022, the Texas State Securities Board and the Texas Department of Banking objected to an asset purchase agreement submitted in the bankruptcy proceeding, and in a supporting declaration, the Texas regulators revealed that it was investigating FTX’s interest accounts and the sale of unregistered securities.
On November 2, 2022, Coindesk published an article that disclosed purported concerns relating to Alameda Research and FTX’s close relationship, in addition to Alameda Research’s large FTT holdings.
On November 6, 2022, Binance’s Chief Executive Officer, Changpeng Zhao, announced on Twitter that Binance would, “[d]ue to recent revelations that have come to light, . . . liquidate any remaining FTT on [its] books.”
On November 8, 2022, The Wall Street Journal published an article, “Binance’s Deal for Rival FTX Marks Power Shift Amid Crypto Turmoil,” discussing Binance’s non-binding agreement to purchase FTX amid FTX’s “sudden liquidity crunch.”
On November 9, 2022, The Wall Street Journal published an article, “Binance Walks Away From Deal to Rescue FTX,” which disclosed that the purchasing agreement between Binance and FTX would not be finalized.
On November 11, 2022, FTX filed for bankruptcy.
For additional information, please click “At least $1 billion of client funds missing at failed crypto firm FTX, sources say”; “Funds vanish at bankrupt crypto exchange FTX; probe underway.”