Amid several government agencies and individuals looking to sue FTX and its former CEO, a group of aggrieved users of FTX exchange has filed a suit to be ahead of others.
The lawsuit was filed by four individuals on December 27 in United States Bankruptcy Court for the District of Delaware.
According to the suit, the plaintiffs demand priority access to frozen assets of FTX for its customers, not investors. The four plaintiffs further claimed that they’re representing the whole class of FTX exchange customers, which might be up to 1 million customers.
The plaintiffs in the lawsuit posited that the exchange user agreement does not allow FTX to either use customers’ money for operating expenses or use users’ funds for its own purpose. Attempts to take out customers’ funds from accounts is “impermissible co-mingling, misappropriation, misuse, or conversion of customer property,” as written in the suit.
Therefore, funds frozen by FTX and traceable as customer property cannot be used to pay non-customer expenses, claims or creditors until customers are repaid, the lawsuits states:
“Customer class members should not have to stand in line along with secured or general unsecured creditors in these bankruptcy proceedings just to share in the diminished estate assets of the FTX Group and Alameda.”
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