FTX is facing a class-action lawsuit by investors in this cryptocurrency exchange. FTX is seeking a bankruptcy and a liquidation of its assets. The lawsuit claims that FTX, along with other former CEO Sam Bankman-Friend and several celebrities, were responsible for the damage for promoting the exchange before its market collapse earlier this month.
They claim nearly 1 million users who both purchased and/or traded, could face losses of more than $11 billion. It further alleges that the company deceived customers due to its Ponzi-like scheme with customer funds.
The lawsuit was filed in Miami, the city of FTX’s headquarters.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.