Hawkins V. Bankman-Fried Et Al
A class action lawsuit has been filed by Russell Hawkins against FTX Trading LTD, FTX US, Alameda Research, and their executives, including Samuel Bankman-Fried, Caroline Ellison, Zixiao Gary Wang, and Nishad Singh, as well as accounting and consulting firms Armanino and Prager Metis CPAs, LLC, in the United States District Court, California Northern. The lawsuit alleges that the defendants violated the California Unfair Competition Law, the California False Advertising Law, committed fraudulent concealment, civil conspiracy, and declaratory judgment. The plaintiff and other class members were unable to withdraw funds deposited into a yield-bearing account with FTX Trading LTD or FTX US due to the defendants' wrongful acts. The FTX Entities' rapid growth halted when CoinDesk published an article questioning the financial health of both Alameda and the FTX Entities. The FTX Entities saw massive customer withdrawals, resulting in a liquidity crisis, and ultimately, Bankman-Fried elected to freeze all withdrawals of customer assets. The lawsuit seeks damages caused by the defendants' violations, including breach of fiduciary duty.
Read Next