A class action lawsuit has been initiated by the crypto investors against Sam Bankman-Fried (SBF) over his role in the FTX collapse.
As all of us know very well the mismanagement of the user’s funds by the FTX team resulted in the liquidity crisis on the platform, during a small controversy with the Binance exchange. And also FTX & its affiliated companies filed for Bankruptcy.
On 16 November, Reuters reported that some crypto investors, who faced loss in the FTX exchange because of the stoppage of its services, sued FTX founder Sam Bankman-Fried (SBF).
The lawsuit mainly targeting the FTX exchange over its violation of yield-bearing crypto accounts associated with the exchange.
This lawsuit also targets all those big names, who contributed to & promoted this exchange like National Basketball Association (NBA) stars Stephen Curry and Shaquille O’Neal, alongside American football’s Tom Brady. NBA outfit, the Golden State Warriors.
Edwin Garrison, a resident of Oklahoma, said in the suit that the design of the FTX exchange was only to make money from the investors from those people who used Mobile to invest money.
“As a result, American consumers collectively sustained over 11 billion dollars in damages.”
According to reports, FTX founder SBF & few other leading contributors of the platform are under the custody of the enforcement agencies of Bahamas and also there are now possibilities of extradition of Bankman-Fried from the Bahamas to the United States to figure out his role in the FTX downfall.
Recently Crypto-law.com also confirmed that they sent approximately 9,000 messages to the Congress App to initiate an investigation against FTX’s former CEO SBF and also to find out whether there was any kind of tie between SBF & SEC chairman Gary Gensler, which helped SBF to misuse his power.