Over 1 Million FTX Customers Filed Class Actions To Get Their Money Back

Key Points:

• More than 1 million FTX customers have organized class action lawsuits for access to their assets.
• The client group also wants the court to specifically determine that the property held at Alameda that the customer can trace is not Alameda’s property.
• The lawsuit is the latest legal attempt to bring a claim against FTX’s dwindling assets.

On December 28, FTX customers filed a class-action lawsuit against crypto exchange FTX and its former executives (including SBF), asking the court to declare that the assets digital assets held by the company belong to the customer, according to Reuters.

The lawsuit seeks to represent more than 1 million FTX customers in the United States and abroad. The lawsuit asks the court to declare that funds are held in FTX US accounts for US customers, funds are held in FTX Trading accounts for non-US customers, or other traceable customer assets are not the property of FTX.

According to the complaint filed with the Delaware Bankruptcy Court, the customer also wants the court to clearly establish that the property held in Alameda that is traceable to the customer is not Alameda’s property. If the court determines that it is the property of FTX, then the customer will ask for a ruling that they have priority over other creditors.

If the court determines that it is the property of FTX, then the customer will ask for a judgment that they have priority over other creditors.

The lawsuit is the latest legal attempt to claim the dwindling assets of FTX, which has been up against liquidators in the Bahamas and Antigua and the bankrupt assets of another failed crypto firm, Blockfi, the report said.

Previously, FTX committed to segregation of customer accounts and instead allowed them to be misappropriated and as a result, customers must be reimbursed first, according to a lawsuit filed with the Delaware Bankruptcy Court in the United States.

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