FTX customers file class-action lawsuit to lay claim to dwindling assets

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FTX customers file class-action lawsuit to lay claim to dwindling assets
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FTX pledged to segregate customer accounts and instead allowed them to be misappropriated and therefore customers should be repaid first, according to a lawsuit filed in U.S. Bankruptcy Court in Delaware

on Tuesday, seeking a declaration that the company’s holdings of digital assets belong to customers.

FTX pledged to segregate customer accounts and instead allowed them to be misappropriated and therefore customers should be repaid first, according to the lawsuit filed in U.S. Bankruptcy Court in Delaware. Bankman-Fried faces charges stemming from what a federal prosecutor called a “fraud of epic proportions” that included allegedly using customer funds to support his Alameda Research crypto trading platform.

The proposed class, which wants to represent more than 1 million FTX customers in the United States and abroad, seeks a declaration that traceable customer assets are not FTX property. The customer class also wants the court to find specifically that property held at Alameda that is traceable to customers is not Alameda property, according to the complaint.

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