FTX INVESTIGATION ALERT: Berger Montague Investigates Claims On Behalf of FTX Customers

PHILADELPHIA, Nov. 10, 2022 /PRNewswire/ -- Berger Montague is investigating potential claims on behalf of customers of FTX Crypto Exchange. Specifically, Berger Montague is investigating potential claims arising from FTX's decision to lend customer assets to an affiliated trading firm to fund risky investments.

According to a November 10, 2022 Wall Street Journal article titled "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall," FTX advanced about $10 billion worth of customer assets to an affiliated trading firm, Alameda Research – a firm known for aggressive trading strategies funded by borrowed money – to "fund risky" bets.

The article reports that Sam Bankman-Fried, FTX's Chief Executive Officer, "told an investor this week that Alameda owes FTX about $10 billion" and that "Mr. Bankman-Fried described [the decision] as a poor judgment call."

In the morning of November 10, 2022, Mr. Bankman-Fried tweeted that roughly $5 billion worth of customer withdrawals were requested on Sunday, forcing FTX to pause withdrawals earlier this week.

In response to the crisis, FTX was forced to "scramble for an emergency investment." On Tuesday, November 8, 2022, FTX agreed to sell the company to its rival, Binance. The following day, Binance walked away from the deal.

If you are a customer of FTX and would like to learn more about our investigation, please contact Berger Montague: James Maro at jmaro@bm.net or (215) 875-3093, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015.

Whistleblowers: Anyone with non-public information regarding FTX is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.

Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.

Contacts:

James Maro, Senior Counsel

Berger Montague

(215) 875-3093

jmaro@bm.net

Andrew Abramowitz, Senior Counsel

Berger Montague

(215) 875-3015

aabramowitz@bm.net

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SOURCE Berger Montague

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First published on Fri, Nov 11, 2022

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