The plaintiffs emphasize that the FTX User Agreement did not permit the platform to use customer funds for its own purposes, including borrowing or using it for operating expenses.
What the lawsuit seeks to obtain are the priority rights to return digital assets held by FTX US or FTX.com to its customers.
Any removal of customer funds from accounts was an “impermissible co-mingling, misappropriation, misuse, or conversion of customer property,” according to the complaint.Hence, any 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.”into the whereabouts of approximately $372 million in missing digital assets from FTX. On Nov. 12, amid its bankruptcy and internal collapse, FTX warned customers of abnormal wallet activity regarding at least 228,523 Ether transferred out of the exchange from an unknown perpetrator.
Another foul play was suspected when the crypto wallets associated with now-bankrupt trading firm Alameda Research, the sister company of FTX, began
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