On November 11, 2022, reeling from a run-on its accounts due to reports of misconduct, FTX.com sought bankruptcy protection. The total losses consumers and investors sustained is estimated to surpass $20 billion dollars.
As widely reported in the media, FTX.com engaged in creative accounting. Using the FTT token issued by a sister company, Alameda Research, FTX.com was able to prop up its balance sheet to the outside world. Said differently, the value of the FTT token – a manmade digital currency – was the primary asset supporting FTX.com’s considerable valuation.
Due to fraud and misrepresentations – perpetuated by FTX’s Board and celebrity endorsers–investors of FTX.com have been monetarily damaged. FTX.com’s value has plummeted from $32 billion to $0.
Our firm is working on investigating this matter and intends to file a Shareholder Derivative Class Action to recover damages for any investors in FTX.com that lost money.