Customers sue FTX and SBF for priority right to repayment over other creditors.
The lawsuit, filed as part of the bankruptcy case in Delaware, seeks a court ruling recognizing that their holdings with the trading platform belong to them rather than the failed company.Four FTX customers have filed a lawsuit on Tuesday against the crypto exchange and its former executives, including founder and ex-CEO Sam Bankman-Fried . They want the court to declare that the digital assets held with the platform belong to its customers rather than FTX or its other creditors.
The group also asks their suit to be accepted as a class action as part of the case in Delaware, according to reports published by Reuters and Bloomberg. The Bahamas-based FTX for Chapter 11 bankruptcy protection in the state on Nov. 11 as traders and investors rushed to withdraw their money.pledged that customers will be repaid first. The latest complaint insists that “customer class members should not have to stand in line along with secured or general unsecured creditors in these bankruptcy proceedings just to share in the diminished estate assets of the FTX Group and Alameda.
Following his resignation as chief executive and after his extradition from the Bahamas, Bankman-Fried is facing
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