FTT investors’ claims to be investigated for securities laws violations

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FTT investors' claims to be investigated for securities laws violations
Ledger



To help out the recently duped investors of FTX Tokens (FTT), shareholder rights litigation firm — Schall Law Firm — has taken up the task of investigating the investors’ claims against FTX for violations of the securities laws.

It is estimated that over one million people have lost their life savings owing to the financial fraud committed by FTX CEO Sam Bankman-Fried. To help the investors legally recoup losses, the law firm plans to investigate FTX for issuing misleading statements or failing to disclose crucial information.

In an official statement, Schall Law Firm highlighted how various media publications uncovered the cracks within FTX-Alameda operations, eventually leading to the crash of FTX’s in-house FTT tokens.

The law firm advised all FTT investors to participate in the drive by sharing information linked to their purchase and sale of FTT tokens. Investors need to know that unless the class gets certified — wherein the court determines that a class action is the best option to manage the multiple claims — they are not represented by an attorney.

Phemex

Moreover, crypto entrepreneurs, including Tether executives and Binance CEO Changpeng ‘CZ’ Zhao, believe that SBF was proactively trying to destabilize the crypto market to save FTX.

Related: Sam Bankman-Fried’s parents no longer on the Stanford Law School roster

FTX recently hired a team of financial forensic investigators to track down the investors’ lost money. The firm’s primary goal is to conduct “asset-tracing” to identify and recover the missing digital assets.

On Nov. 22, a lawyer — James Bromley, a partner at law firm Sullivan & Cromwell — representing FTX debtors stated that “a substantial amount of assets have either been stolen or are missing” from FTX. Moreover, he revealed that blockchain analytics firms such as Chainalysis had been enlisted to help as part of the proceedings.



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