If you have suffered investment losses in FTX, or are an account holder with lost funds at FTX, you may be able to pursue recovery of your losses through securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
FTX Investors or Account Holders May Be Able to Pursue Recovery of their Losses
If you have suffered losses in the FTX cryptocurrency exchange. According to its website, FTX was built as a digital currency ecosystem to offer US traders a platform for cryptocurrency, with the hopes of becoming a market-leading US cryptocurrency exchange over the next two years. If you invested in FTX, or held an account with FTX, please contact Kons Law Firm today at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your FTX investment loss recovery options.
FTX Allegedly Used Customer Account Funds to Loan Affiliate Funds for Risky Trading
According to recent news reports, cryptocurrency exchange FTX allegedly lent approximately $10 billion dollars worth of customer funds deposited at FTX to fund risky trades made by its affiliated trading firm, Alameda Research. Upon information and belief, FTX had a total of $16 billion in customer deposits, making such loans to Alameda Research more than half of its customer fund deposits.
In or about the week of November 7, 2022, FTX paused customer withdrawals when it received approximately $5 billion worth of withdrawal requests. News reports indicated that FTX struck a deal to sell itself to Binance, which ultimately walked away from indicating that it could not assist with FTX’s problems. However, account holders may still not be able to access their funds.
As a result of these recent developments, the U.S. Department of Justice and the Securities and Exchange Commission have reportedly launched investigations into the sudden implosion of FTX. Prominent investors such as Sequoia Capital have also marked their investment in FTX down to $0 – meaning that Sequoia marked its investment in FTX as a complete loss.
FTX Investors May Have Investment Loss Recovery Options
Investors in FTX may be able to pursue recovery against securities brokers and third-party professionals who sold or materially participated in the offer and sale of investments in FTX. If you invested in FTX, please contact Kons Law Firm to discuss your particular recovery options.
If you are an investor or account holder in FTX, you may be able to pursue recovery of your losses through securities litigation against the broker or brokerage firm that sold an investment FTX to you, or a third-party professional that may have materially assisted in the offer or sale of such securities. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your FTX investment loss recovery options.
Kons Law Firm represents investors throughout the US in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation practice, please visit www.investmentlossattorney.com.