FTX Investor Group A class action lawsuit has been filed against US law firm Sullivan & Cromwell. Bankrupt cryptocurrency exchange scam against customers. The law firm is known to have worked for the cryptocurrency exchange since it was a household name, and now the plaintiffs are claiming they are also responsible for the company’s illegal actions.
Details about the proposed class action
According to court filingPlaintiffs claim FTX could not have done so. I was scammed This “enormous scale” was achieved with the help of Sullivan & Cromwell (S&C). They claim the law firm provided: Cryptocurrency exchange disappeared With “immense resources, connections to regulators, expertise and support” essential to perpetuate the plan.
Court documents highlight how S&C formed a close relationship with FTX through the company’s dealings. General Counsel, Line Miller, who once worked at a law firm. Through this, S&C “further solidified our participation and interest in FTX’s growth and expansion.” It was also revealed that the law firm provided legal services to an FTX subsidiary. Alameda Research.
Detailing S&C’s deep involvement with the exchange and its sister companies, the plaintiffs suggested that the law firm could not have been unaware of the fraudulent activity and had taken steps to assist those companies in their botched trading. Meanwhile, the law firm didn’t stop there. They also tried to make a profit. FTX collapse.
Sullivan and Cromwell, along with Miller, were accused of “seriously” pushing FTX to file for bankruptcy. Miller also appears to have ensured that $4 million be remitted to the law firm to retain its services for the bankruptcy proceedings. bitcoinist once reported How a law firm was billed nearly $40 million for work performed in the bankruptcy case of a cryptocurrency exchange.
Criticism of FTX’s proposed SOL token sale
FTX creditor Sunil Kaburi Recently highlighted irregularity of sales offer Donate FTX’s discounted SOL tokens to Pantera Capital. Sunil stated that these tokens are intended to be distributed to the exchange’s creditors rather than sold to cryptocurrency-focused asset managers. Pantera reportedly plans to purchase these SOL tokens at a discounted price of $59.95 each.
This does not sit well with Sunil and other creditors. Mainly because it was previously released. FTX’s Repayment PlanThe bankrupt cryptocurrency exchange says it will reimburse customers based on the current cryptocurrency price in November 2022. This customer claims that the tokens are his and that it is not appropriate for him to be paid a portion of them in dollar amounts.
FTT Token price recovers to $2.4 | Source: FTTUSDT on Tradingview.com
Featured image from Financial Times, chart from Tradingview.com