The petition filed seeks to recover assets believed to be linked to SBF.
It is emphasized that the assets in question legally belong to the customers, not FTX.
Adam Moskowitz and David Boies, legal representatives of FTX creditors in a class action lawsuit, have made significant progress in seeking justice for those affected by the collapse of the crypto exchange. They are pushing for the seizure of assets connected to FTX founder, Sam Bankman-Fried (SBF), through a petition submitted to Judge Moore in Florida.
Furthermore, many creditors suffered severe financial losses due to FTX’s collapse. The petition aims to recover assets allegedly associated with SBF, potentially offering some compensation to the affected parties.
Ownership of the Assets in Dispute
FTX creditors’ spokesperson, Sunil Kavuri, stated that the class action lawsuit against SBF’s forfeited property was filed in Florida by their legal team, Moskowitz and Boies. The creditors argue that the claims typically part of the bankruptcy estate are not included in the MDL litigation. They also assert that the customers, not FTX, are the rightful owners of the assets in question.
Additionally, insiders at FTX have acknowledged that the plaintiffs deserve the return of these assets. According to Kavuri, the Terms of Service clearly support this claim. The creditors are confident in their ability to retrieve their cryptocurrency holdings as they are closely tied to investments made by SBF.
Furthermore, the proposed restructuring plan for FTX Trading Ltd. and its affiliates has faced opposition from the Moskowitz Law Firm and Boies Schiller Flexner LLP, representing numerous plaintiffs in the MDL against FTX. They argue that the plan does not meet the disclosure standards outlined in Bankruptcy Code 1125. They also criticize the recovery statistics as misleading and failing to account for the increase in crypto value since the petition date.
FTX Creditors File Class Action Lawsuit to Seize SBFs Assets
