Former customers of the now bankrupt crypto exchange FTX have launched a class action lawsuit against the company and its executives, including Sam Bankman-Fried, for priority rights to repayment before non-customer creditors.
The suit claims that a group of FTX directors did not put in place sufficient safeguards for customer funds, resulting in the misappropriation of billions of dollars in customer assets and digital currencies.
According to bankruptcy filings, FTX Trading Ltd. and its affiliates owe their 50 biggest creditors approximately $3.1 billion.
In addition, the US Department of Justice has started a criminal investigation into the $372 million stolen from FTX when it filed for bankruptcy and has been able to freeze a portion of it.
The collapse of FTX, previously the number two crypto exchange in the world, has had far-reaching consequences on different business ventures and has resulted in the loss of many jobs in the sector.