FTX Clients File Class Action Lawsuit

Wilmington FTX clients launch a class action lawsuit against the bankrupt crypto exchange and its former executives to save their wealth. “Members of the customer group should not have to stand in line with secured or unsecured creditors in this bankruptcy proceeding just to participate in the diminished assets of FTX Group and Alameda,” the lawsuit said Tuesday in the U.S. bankruptcy court in Delaware.

Insolvency administrators in the Bahamas and Antigua as well as administrators of the bankruptcy estate of Blockfi, another insolvent crypto company, are already fighting over the remaining assets of the crypto exchange. FTX did not immediately respond to a request for comment.

The plaintiffs want to ensure that traceable customer assets are not included in the bankruptcy estate of either FTX or Almeda. If, on the other hand, the court finds that the customer funds are owned by the crypto companies, the private customers will demand a priority right to repayment over other creditors.