The number of lawsuits against former FTX CEO Sam Bankman-Fried has been piling up since the fall of his crypto empire, with the former crypto “white knight” finding himself a defendant in seven class action lawsuits filed since bankruptcy. from FTX.
These lawsuits are independent of the extensive evidence and investigations examining FTX and Sam Bankman-Fried, such as a report market manipulation investigation by federal prosecutors and the probable Federal Election Commission investigation into Bankman-Frieds dark money donations to the Republican Party.
Below is a summary of the 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 to you by Gregg Podalsky and four others, former FTX clients accuse the Golden State Warriors, Bankman-Fried and many other celebrities and FTX executives of fraudulently inducing "unsophisticated investors" to buy unregistered securities in the form of performance accounts, resulting in clients losing billions of dollars.
Other public figures also named in the lawsuit include Tom Brady, Kevin O'Leary, Stephen Curry, Trevor Lawrence and Shaquille O'Neal, with Podalsky demanding that the case go to a jury trial.
Dec. 5: Jessup v. Bankman-Fried et al.
FTX client Michael Elliott Jessup has He brought a class action lawsuit against Bankman-Fried, former Alameda CEO Caroline Ellison and other FTX executives accusing them of fraud, unjust enrichment and conversion.
Unjust enrichment in legal cases refers to situations where one person enriches himself at the expense of another, in circumstances deemed unfair by law, while conversion refers to situations where one person 'converts' another's property For herself.
Jessup, who also called for the case to have a jury, alleges that the clients who held funds in FTX were in rightful possession of their crypto assets, and that the defendants transferred these assets to Alameda Research without the authority to do so, which constitutes conversion in the eyes of Jessup's lawyers.
December 2: Hawkins v Bankman-Fried et al.
Filed in California, this lawsuit is a class action brought by Russell Hawkins, an FTX client who held funds on the exchange, on behalf of all those in similar situations and alleges that clients were misled by unfair and deceptive practices.
The defendants include Bankman Fried and other FTX executives, as well as accounting firms Armanino and Prager Metis, who issued certified reports that they considered FTX to be in good financial health, with the filing stating:
“As set forth herein, the Individual Defendants made statements with respect to the YBAs [Yield-bearing accounts] and the FTX Entities that were false or misleading. They publicly represented that FTX Entities and YBAs were a viable and safe way to invest in crypto, a statement designed to mislead consumers into investing with FTX Entities."
Nov. 23: Pierce v. Bankman-Fried et al.
With the same defendants like 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 slush fund to finance his own proprietary investments and a variety of personal extravagances.”
Once again, the plaintiff (Pierce) has demanded a jury, who alleges that the Organized Crime Influenced and Corrupt Organizations (RICO) Act has been violated.
Racketeering is a type of organized crime in which a coordinated illegal scheme or operation is established that allows the perpetrators to consistently make a profit.
Nov 19, 21: Revelation v. According to Bankman-Fried et al.
FTX client Sunil Kavuri has archived a class action lawsuit in Florida similar to Podalsky v Bankman-Fried, in which the named defendants include celebrities or public figures who endorsed or promoted FTX, allegedly without disclosing their pay or stake in the company.
It's also a case the Securities and Exchange Commission may be keeping a close eye on, with Kavuri alleging that FTX was promoting unregistered securities that fraudulently presented themselves as securities in an effort to attract customers and generate interest.
Nov. 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 broken California's misleading advertising and unfair competition laws, and have also engaged in fraudulent cover-up and civil conspiracy.
Lam asserts that the defendants sold and marketed to the public who could not have known the "true nature of FTX and YBA," and that if the public had had the same information as the defendants, they would not have chosen to use FTX's products, thereby which constitutes fraudulent concealment.
Nov. 15: Garrison v. Bankman-Fried et al.
This claim once again It includes an entire set of famous actors and public figures alleged to have endorsed or participated in marketing campaigns for FTX, the class action lawsuit filed by Edwin Garrison in Florida alleges that FTX YBAs were illegally offered securities.
Related: Sam Bankman-Fried misses the deadline to respond to the request for testimony, now what?
Garrison also accuses FTX of having engaged in deceptive and unfair business practices, and participated in a "fraudulent scheme" that intentionally took advantage of "unsophisticated investors."
Once these complaints and the necessary documents were presented, they were given a file number and immediately assigned to a judge. From there, each of the defendants receives a summons and a complaint, and the judge will set a timeline detailing the next steps.
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