The legal battle to recover assets linked to SBF, the troubled founder of FTX, is gaining momentum. Adam Moskowitz and David Boies, representing FTX creditors in a class action lawsuit, are pushing for justice for those affected by the crypto exchange’s collapse. They have filed a petition with Judge Moore in Florida to seize assets associated with SBF.
FTX’s demise left many creditors in financial ruin, prompting the petition to seek the recovery of assets connected to SBF in hopes of providing some compensation to those affected.
In a statement, Sunil Kavuri, the spokesman for FTX creditors, revealed that the lawsuit against SBF’s forfeited property was initiated in Florida by the legal team of Moskowitz and Boies. They argue that the claims, which would typically be part of the bankruptcy estate, are excluded from the MDL litigation. It is emphasized that customers, not FTX, are the rightful owners of the assets in question.
Even FTX insiders acknowledge that the plaintiffs deserve the return of these assets, as outlined in the Terms of Service. The creditors are confident in their right to reclaim their cryptocurrency holdings, which are closely tied to investments made by SBF.
The proposed restructuring plan for FTX Trading Ltd. and its affiliates faces opposition from the Moskowitz Law Firm and Boies Schiller Flexner LLP. They represent thousands of plaintiffs in the MDL against FTX, raising concerns that the plan falls short of the disclosure standards set by Bankruptcy Code 1125. They argue that the recovery statistics are misleading and fail to account for the increase in crypto value since the filing date.
In other crypto news today, Curve Finance’s founder claims a $10M debt repayment amidst a liquidation crisis.