Cryptocurrency Exchange
FTX USHeadquarters
Information and Alerts
Alert Details
This business has 3 alerts.
Government Actions
CFTC Obtains $12.7 Billion Judgment Against FTX and Alameda
On August 28,2024 The Commodity Futures Trading Commission announced the U.S. District Court for the Southern District of New York entered a consent order of permanent injunction and other equitable relief against FTX Trading Ltd. and Alameda Research LLC (together, FTX) and ordered FTX to pay $12.7 billion in monetary relief to FTX customers and victims of FTX’s fraud. The order requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered as a result of the massive fraudulent scheme orchestrated by Samuel Bankman-Fried, his now-bankrupt FTX group of companies, and a core group of FTX insiders.
The founder Sam Bankman-Fried was sentenced in March to 25 years in prison for stealing $8bn from customers. He has appealed the conviction. The order finds FTX and Alameda made material misrepresentations and omissions to customers. For more details go here.
Alert
In August 2024, BBB investigated FTX US's business practices. This investigation was prompted by consumer complaints alleging the business has been withholding consumers financial funds and after sending billions of dollars to FTX, believing their assets were secure on the FTX trading platform.
per the details of the lawsuit, Bankman-Fried the Owner improperly diverted customer
assets to his privately-held crypto hedge fund, Alameda Research LLC (“Alameda”), and then
used those customer funds to make undisclosed venture investments, lavish real estate purchases,
and large political donations.
BBB is currently reaching out to the business for any information regarding the business current standing.
On 08/13/2024, and 08/19/2024 BBB requested additional information. As of 8/27/2024, BBB has not received any response from the business.
Based on the information detailed above, BBB cannot confirm the legitimacy of FTX US.
Bankruptcy
On 11/11/2022, the business filed for reorganization under Chapter 11 of the federal Bankruptcy Act, case# 22-11068. This permits the business to continue to operate with court supervision while developing a plan of reorganization. Those with monetary claims against the business are advised to obtain a Proof of Claim form by writing to United States Bankruptcy Court for the District of Delaware 824 N Market St. 5th Floor, Courtroom No. 5 Wilmington DE 19801 for resubmission to that court.
The case number should be entered on the form. Claims must be submitted by 11/11/2022
Important Information
Believed to be out of business
According to information in BBB files, it appears that this business is no longer in business.
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