Customers of failed cryptocurrency exchange FTX sued in bankruptcy court in hopes of being first in line to recover some of the billions lost in the meltdown of Sam Bankman-Fried’s digital-asset empire.
A group of four FTX customers asked a bankruptcy judge Tuesday to rule their holdings in the Bahamas-based exchange belong to them, rather than FTX. They want the judge to give customers repayment priority over other FTX creditors, according to a Delaware bankruptcy court filing. The group is also asking to have the suit certified as a class-action case.
Authorities accuse Bankman-Fried – the exchange’s 30-year-old founder – of fraudulently raising $1.8 billion from investors and using FTX funds to make high-risk bets at his hedge fund, Alameda Research, and cover personal expenses. He’s facing federal criminal charges of wire fraud, securities fraud and money laundering. He’s currently free on bond and living with his parents in California.
