- FTX hired financial forensic investigators to track the missing users’ funds.
- The former FTX CEO was arrested in the Bahamas
- The Schall Law Firm filed a lawsuit against Affirm Holdings, Inc.
The shareholder rights litigation firm Schall Law firm announced that the firm would start investigating FTT investors who claim against FTX for violating the securities laws. The law firm requested all the FTT investors to provide information on their trading of FTT tokens. More than 1 million investors lost their life savings due to FTX’s sudden collapse.
The new management of FTX recently hired financial forensic investigators to track the missing users’ funds from the failed crypto exchange. Recently, Chainalysis released data that shows the funds stolen from the FTX were not directly sent to the Bahamas Securities Commission. Moreover, $333 million worth of FTX-related Bitcoins has disappeared.
According to the reports, Alameda purchased FTT tokens at a lower price. The entity waited a long time to increase the price of FTT tokens. After some days, Alameda started borrowing “real money” using these highly inflated FTT tokens as collateral.
Recently, the Schall Law Firm filed a lawsuit against Affirm Holdings, Inc. for violating federal securities laws. The law firm said the investors who bought the fintech services company’s shares between February 12, 2021 and December 15, 2021, contact the firm before February 6, 2023. As per the complaint, the entity misled the investors with false statements.
The Schall Law Firm represents investors worldwide who have been harmed by securities fraud and cooperative malfeasance. Some of the latest achievements include:
- In re Toronto-Dominion Bank Securities Litigation- $13.2 million settlement.
- Daniel Turocy et al. v. El Pollo Loco Holdings, Inc., et al.- $20 million settlement.
- In re CPI Card Group Inc. Securities Litigation- $11 million settlement.
SBF Arrested In Bahamas
The US Attorney’s office spokesperson confirmed that former FTX CEO Sam Bankman-Fried was arrested in the Bahamas. United States prosecutor Damian Williams said, “at the request of the US government, based on a sealed indictment filed by the United States Attorney’s Office for the Southern District of New York.”
On November 11, with FTX’s bankruptcy filing, the crypto industry faced a major shock. FTX, once the world’s second-largest crypto exchange platform, was valued at $32 billion (USD).
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.