FTX Creditors Seek Seizure of SBFs Assets in Class Action Lawsuit
- The petition seeks to recover assets alleged to be associated with SBF.
- They stress that the customers, and not FTX, are the legal owners of the assets at issue.
Adam Moskowitz and David Boies, who are representing FTX creditors in a class action lawsuit, have made great strides in their quest for justice on behalf of those impacted by the crypto exchanges demise. They are requesting the seizure of assets associated with the troubled FTX founder, Sam Bankman-Fried (SBF). This is via a petition that was filed with Judge Moore in Florida.
Moreover, many creditors were left financially devastated by FTXs collapse. The petition seeks to recover assets alleged to be associated with SBF, which might provide some compensation to them.
Claim Over Legal Owners of the Assets
Furthermore, the spokesman representing FTX creditors, Sunil Kavuri, has stated that the class action lawsuit against SBFs forfeited property was filed in Florida by his legal team, Moskowitz and Boies. The creditors contend that the claims that would normally be part of the bankruptcy estate are not included in the MDL litigation. Also, they stress that the customers, and not FTX, are the legal owners of the assets at issue.
Also, even FTX insiders have acknowledged that the plaintiffs should get these assets back. And the Terms of Service are quite clear, according to Kavuri. Furthermore, the creditors are certain that they have a right to recover their cryptocurrency holdings as they are closely linked to investments made by SBF.
Moreover, the planned restructuring plan for FTX Trading Ltd. and its affiliates has been opposed by the Moskowitz Law Firm and Boies Schiller Flexner LLP. They are representing thousands of plaintiffs in the multi-district litigation (MDL) against FTX.
Claiming that the plan does not meet the full disclosure standards of Bankruptcy Code 1125. They contend that the recovery statistics are deceptive. And do not take into consideration the increase in crypto value since the petition date.
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Read more: https://thenewscrypto.com/ftx-creditors-seek-seizure-of-sbfs-assets-in-class-action-lawsuit/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
