SBF received 7 lawsuits
2022.12.09 01:16
SBF received 7 lawsuits
Budrigannews.com – Since the demise of his crypto empire, former FTX CEO Sam Bankman-Fried has been the subject of a growing number of lawsuits. Since FTX’s bankruptcy, seven class-action lawsuits have been filed against him.
These lawsuits are distinct from the numerous investigations into FTX and Sam Bankman-Fried, such as a reported federal prosecutors’ investigation of market manipulation and the likely investigation into Bankman-Fried’s dark money donations to the Republican Party by the Federal Election Commission.
The following is a rundown of the legal claims brought against Sam Bankman-Seared since Nov. 11.
In this class action lawsuit filed by Gregg Podalsky and four others, former FTX customers claim that Golden State Warriors, Bankman-Fried, a slew of celebrities, and FTX executives conned “unsophisticated investors” into purchasing unregistered securities in the form of yield-bearing accounts, causing customers to lose billions of dollars.
The lawsuit also names Tom Brady, Kevin O’Leary, Stephen Curry, Trevor Lawrence, and Shaquille O’Neal. Podalsky wants the case to be tried by a jury.
Michael Elliott Jessup, a customer of FTX, has filed a class action lawsuit against Bankman-Fried, Caroline Ellison, the former CEO of Alameda, and other FTX executives, alleging that they engaged in fraud, unjust enrichment, and conversion.
In legal cases, the terms “unjust enrichment” and “conversion” refer to instances in which one person “converts” another person’s property for themselves, while “unjust enrichment” refers to instances in which one person benefits at the expense of another.
Jessup, who has likewise requested the case have a jury, charges that clients who held assets on FTX had legitimate ownership of their crypto resources, and that the respondents moved these resources for Alameda Exploration without the power to do so — which is change according to Jessup’s attorneys.
This lawsuit, which was filed in California, is a class action brought by Russell Hawkins, a FTX customer who held funds on the exchange. It claims that customers were misled by unfair and deceptive practices and represents all those in a similar situation.
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Bankman Fried and other FTX executives are among the defendants, as are Armanino and Prager Metis, accounting firms that had issued certified reports stating that FTX was in good financial health, as noted in the filing:
“As set forth herein, the Individual Defendants made statements regarding YBAs [Yield-bearing accounts] and the FTX Entities that were untrue or misleading. They publicly represented that the FTX Entities and YBAs were a viable and safe way to invest in crypto, a statement designed to deceive consumers into investing with the FTX Entities.”
Stephen Pierce, a FTX customer, filed a class action lawsuit in California against Bankman-Fried, naming the same defendants as in the Hawkins case. Pierce claimed that Bankman-Fried was “one of the great frauds of history” and that “his inner circle treated those assets as a slush fund to fund their own proprietary investments and a variety of personal boondoggles.”
The plaintiff (Pierce), who asserts that the Racketeering Influenced and Corrupt Organizations Act (RICO) has been violated, has requested a jury once more.
Racketeering is a type of organized crime in which a criminally coordinated scheme or operation is set up to consistently generate a profit for the perpetrators.
Sunil Kavuri, a customer of FTX, has filed a class action lawsuit in Florida that is similar to Podalsky v. Bankman-Fried in that the defendants listed include public figures and celebrities who have allegedly endorsed or promoted FTX without disclosing their payment or stake in the company.
Kavuri claims that FTX promoted unregistered securities that were fraudulently presented as securities in an effort to attract customers and generate interest. This is another case that the Securities and Exchanges Commission may be keeping an eye on.
Hong Kong occupant and FTX client Elliot Lam is the offended party in one more legal claim recorded in California, who charges that Bankman-Broiled, Ellison and the Brilliant State Heroes have disregarded California’s calculated deception and unjustifiable rivalry regulations, and have likewise dedicated fake covering and common trick.
Lam asserts that the defendants sold and marketed to a public that could not have known the “true nature of FTX and YBAs,” and that if the public had been provided with the same information as the defendants, they would not have chosen to use FTX’s products, resulting in fraudulent concealment.
The class action lawsuit that was filed by Edwin Garrison in Florida alleges that FTX’s YBAs were illegally offered securities. This lawsuit once again includes a full suite of celebrity actors and public figures who are understood to have endorsed or been involved in marketing campaigns for FTX.
In addition, Garrison asserts that FTX was engaged in a “fraudulent scheme” that purposely exploited “unsophisticated investors” and engaged in deceptive and unfair business practices.
A docket number was assigned to these complaints as soon as they were filed, and a judge was immediately assigned to them. After that, the judge will set a schedule outlining the next steps and serve a summons and complaint on each of the defendants.
