The number of lawsuits against former FTX CEO Sam Bankman-Fried has been piling up since the fall of his cryptocurrency empire.; The former cryptocurrency “white knight” has been a defendant in seven class action lawsuits filed since the FTX bankruptcy.
These lawsuits are independent of the numerous probes and investigations examining FTX and Sam Bankman-Fried.such as a market manipulation investigation by federal prosecutors and the likely Federal Election Commission investigation into Bankman-Fried’s black money donations to the Republican Party.
Next provides a summary of class action lawsuits filed against Sam Bankman-Fried since November 11.
December 7: Podalsky et al. v. Bankman-Fried et al.
In this class action lawsuit brought by Gregg Podalsky and four others, former FTX clients accused the Golden State Warriors, Bankman-Fried, and numerous other FTX executives and personalities of fraudulently inducing “unsophisticated investors” to purchase unregistered securities in form of interest-bearing accountsresulting in clients losing billions of dollars.
Other public figures also cited in the lawsuit include Tom Brady, Kevin O’Leary, Stephen Curry, Trevor Lawrence and Shaquille O’Neal.and Podalsky demands that the case have a jury trial.
December 5: Jessup v. Bankman-Fried et al.
FTX client Michael Elliott Jessup has filed a class action lawsuit against Bankman-Fried, former Alameda CEO Caroline Ellison and other FTX executives, accusing them of fraudunjust enrichment and conversion.
Unjust enrichment in legal cases refers to situations in which one person enriches himself at the expense of another, in circumstances that the law considers unfairwhile conversion refers to situations in which one person “converts” another’s property into their own.
Jessup, who has also called for the case to have a jury, alleges that clients holding funds in FTX had legitimate possession of their crypto assets and that the defendants transferred these assets to Alameda Research without authority to do so.which constitutes conversion in the eyes of Jessup’s lawyers.
December 2: Hawkins v Bankman-Fried et al.
filed in californiathis lawsuit is a class action brought by Russell Hawkins – an FTX client who held funds on the exchange – on behalf of all those similarly situated and alleges that the clients were deceived through unfair and deceptive practices.
Defendants include Bankman Fried and other FTX executives, as well as accounting firms Armanino and Prager Metis.which had issued certified reports in which they considered FTX to be in good financial health:
“As set forth herein, the individual defendants made false or misleading statements in connection with the YBAs [Yield-bearing accounts] and the FTX entities. They publicly stated that the FTX entities and YBAs were a viable and safe way to invest in cryptocurrency, a statement designed to mislead consumers into investing in the FTX entities.”
November 23: Pierce v. Bankman-Fried et al.
With the same defendants as in the Hawkins case, FTX client Stephen Pierce filed a class action lawsuit in California accusing Bankman-Fried of being “one of the great frauds in history,” and that he “and his inner circle treated those assets as a fund to finance their own property investments and an assortment of personal boondoggles.”
The plaintiff (Pierce) has again called for a jury, alleging a violation of the Organized Crime Influenced and Corrupt Organizations (RICO) Act..
Extortion is a type of organized crime in which a coordinated illegal plan or operation is established that allows authors to profit systematically.
November 21: Kavuri vs. Bankman-Fried et al.
FTX client Sunil Kavuri has filed a class action lawsuit similar to Podalsky’s against Bankman-Fried in Florida, in which the defendants include celebrities or public figures who have endorsed or otherwise promoted FTXsupposedly without disclosing his remuneration or participation in the company.
It’s also a case the Securities and Exchange Commission may be watching closely, as Kavuri alleges that FTX was promoting unregistered securities that were fraudulently presented as securities. in an effort to attract customers and generate interest.
November 20: Lam vs. Bankman-Fried
Elliot Lam, a Hong Kong resident and FTX customer, is the plaintiff in another class action lawsuit filed in California, alleging that Bankman-Fried, Ellison and the Golden State Warriors have violated California’s unfair competition and deceptive advertising laws and have also committed fraudulent cover-up and civil conspiracy.
Lam claims that the defendants sold and marketed to a public that could not know the “true nature of FTX and YBAs.”and that if the public had had the same information as the defendants, they would not have chosen to use FTX’s products, which constitutes fraudulent concealment.
November 15: Garrison v. Bankman-Fried et al.
This lawsuit again includes the full range of famous actors and public figures who are understood to have endorsed or participated in marketing campaigns for FTX; Class action lawsuit filed by Edwin Garrison in Florida alleges that FTX YBAs were illegally offered securities.
Garrison also accuses FTX of engaging in deceptive and unfair business practices and engaging in a “fraudulent scheme.” that he intentionally took advantage of “unsophisticated investors.”
Once these lawsuits and the necessary documents were filed, they were assigned a file number and immediately assigned to a judge. From there, each defendant is served with a Summons and Complaint, and the judge sets a timetable for next steps.
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