Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, is investigating whether FTX Trading Ltd (“FTX” or the “Company”) (Native Token: “FTT”) or certain of its officers and directors violated federal securities laws. If you purchased FTX securities (e.g. FTT tokens or its high yield bearing accounts) and have suffered losses to your FTX investments, you are encouraged to contact Scott+Scott attorney Sean Masson at (212) 822-5522 or smasson@scott-scott.com.
CLICK HERE FOR MORE INFORMATION ABOUT JOINING THIS INVESTIGATION
FTX Trading Ltd (“FTX”) operates a cryptocurrency exchange that allows investors to trade cryptocurrencies, purchase FTX’s native token FTT, and deposit other cryptocurrencies in high-yield bearing accounts in exchange for a fixed amount of interest.
On October 14, 2022, the Texas State Securities Board and the Texas Department of Banking objected to an asset purchase agreement submitted in the bankruptcy proceeding In re Voyager Digital Holdings, Inc. et al., Case No. 22-109643 (MEW). In a supporting declaration, the Texas regulators revealed that it was investigating FTX’s interest accounts and the sale of unregistered securities.
On November 2, 2022, Coindesk published an article entitled “Divisions in Sam Bankman-Fried’s Crypto Empire Blur on His Trading Titan Alameda’s Balance Sheet” that disclosed purported concerns relating to Alameda Research and FTX’s close relationship, as well as Alameda Research’s large FTT holdings.
Over the next week, FTX and Alameda’s activities came to light even further. On November 6, 2022, Binance’s Chief Executive Officer, Changpeng Zhao announced on Twitter that the world’s largest cryptocurrency exchange (i.e. Binance) would liquidate its FTT holdings “[d]ue to recent revelations that have come to light[.]”
On November 8, 2022, The Wall Street Journal published an article entitled “Binance’s Deal for Rival FTX Marks Power Shift Amid Crypto Turmoil” which discussed Binance’s non-binding agreement to purchase FTX amid FTX’s “sudden liquidity crunch”.
The following day, on November 9, 2022, The Wall Street Journal published an article entitled “Binance Walks Away From Deal to Rescue FTX,” which disclosed to investors that the purchasing agreement between Binance and FTX would not be finalized, leaving FTX in severe danger of insolvency.
On November 11, 2022, FTX filed for Chapter 11 bankruptcy in the federal court in New York in the following action: FTX Trading Ltd., 1:22-bk-11068.
On the above news, the price of FTT has fallen sharply on unusually heavy trading volume.
What You Can Do
If you purchased FTT tokens or opened up an earn rewards account on FTX, and have suffered a loss, realized or unrealized, and you wish to discuss this investigation, please contact attorney Sean Masson at (212) 822-5522 or smasson@scott-scott.com.
What You Can Do – CLICK HERE
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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Contacts
Scott+Scott Attorneys at Law LLP
Sean Masson
(212) 822-5522
smasson@scott-scott.com
