After the billion dollar crash: FTX founder Sam Bankman-Fried is waiting for his trial. He is accused of fraud. And there are still many bills to be paid.
Former clients of crypto exchange FTX have filed a class action lawsuit against the insolvent company. FTX and its operators have “completely waived or ignored their duty to put in place appropriate controls to protect customer property held at FTX,” according to the court filings. The plaintiffs demanded that customers should be prioritized over other creditors in bankruptcy proceedings.
Financial manager Sam Bankman-Fried’s FTX group collapsed in October due to huge withdrawals of funds in connection with liquidity concerns. Billions in customer funds could not be paid out. The US Securities and Exchange Commission has charged Bankman-Fried with fraud.
The authority accuses him of misleading investors with false promises and embezzling their funds. It’s about more than 1.8 billion US dollars (more than 1.7 billion euros). He faces years in prison in the United States.