FTX Trading Ltd.
This is a consolidated lawsuit involving FTX Trading Ltd. and its affiliated companies, including Alameda Research. The plaintiffs allege that the FTX Executive Defendants misappropriated billions of dollars in customer funds and digital assets, engaged in risky investment strategies, and lived lavish lifestyles at the expense of FTX customers. The lawsuit seeks a declaratory judgment that customer property is not property of the Debtors' estates subject to distribution to non-customer creditors. The lack of regulation and oversight for cryptocurrency exchanges is also a major point of contention in this lawsuit. The plaintiffs are seeking damages for breach of contract, breach of fiduciary duty, conversion, and negligence. The Alameda Defendants are accused of aiding and abetting the FTX Defendants' misconduct and are also liable to the Customer Class. The proposed Customer Class consists of customers who were affected by the same unlawful conduct, including misappropriation and misuse of customer property. The lawsuit was filed in the United States Bankruptcy Court in Delaware and demands a trial by jury.
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