The law firm consented to assisting FTX and disgraced founder Sam Bankman-Fried with several legal matters for more than a year before the cryptocurrency exchange collapsed. The Moskowitz Law Firm launched the legal complaint on Friday, 16 February 2024. This is the same firm that acted on behalf of former investors against celebrities such as…
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The initiative comes during intense developments within FTX’s bankruptcy process. The Official Committee of Unsecured Creditors has recently addressed insights from the FTX 2.0 Customer Ad Hoc Committee. They are focused on striking a fair equilibrium between the valuation and distribution of assets in the proposed reorganisation plan, a crucial element in determining the future…
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According to Forbes, FTX is currently perched atop an approximate total of $3.3bn Solana, Bitcoin, and other cryptocurrencies. The company was granted judicial approval to begin liquidating its recovered crypto, which was lost when its former CEO and founder, Sam Bankman-fried, committed wire fraud, of which he was found guilty. John Reed Stark, former chief…
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According to legal documents cited by Bloomberg, experts are trying to determine if all payments were above board. This includes sponsorships to well-knowns such as the NBA’s Shaquille O’Neal and professional tennis player, Naomi Osaka, who received approximately $3.2m from FTX. The once-prominent cryptocurrency exchange submitted its Chapter 11 filing for bankruptcy in November 2022.…
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This draft proposal puts forth ways to honour customer claims as of the official FTX bankruptcy date. Court documents indicate the plan suggests the sale of assets attached to different aspects of the business to affect repayments. Restarting an offshore exchange is also not off the table. The draft references three recovery pools for creditor…
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Additionally, the cancellation of the company’s AFS license does not affect requirements stemming from its membership with the Australian Financial Complaints Authority, and to have arrangements for compensating retail clients. The official announcement also detailed that John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha were appointed as voluntary administrators of FTX Australia and its…
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The Cypriot regulator initially suspended the license of the crypto exchange on 11 November 2022 following its collapse and extended the suspension once in December 2022 until March 2023. CySEC noted that during the suspension, the exchange is not permitted to offer or carry out investment services in the country or enter into any business…
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According to the court filings, between May 2019 and November 2022, FTX’s customer assets were not separated from the company’s as represented to the customers. Furthermore, they were “routinely held by FTX’s sister digital asset trading company, Alameda” and misappropriated for “luxury real estate purchases, political contributions, and high-risk, liquid digital asset industry investments.” The…
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The parent company FTX stopped its operations in November last year after a public collapse and filed for bankruptcy along with 134 subsidiaries. Its Japanese arm’s business was suspended and was supposed to resume withdrawals in December. The exchange pointed out that there might be delays in the processing of the withdrawals due to the…
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Court filings reveal around 117 interested parties have lined up for FTX’s subsidiaries. The collapsed crypto exchange’s lawyers sought after the sale of the assets earlier in December citing loss of value. Cypriot regulator CySEC suspended the FTX Europe's license and FTX Japan’s operations were suspended. It recently came to light that FTX’s liquidators have…
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