To help out the recently duped investors of FTX Tokens (FTT), shareholder rights litigation firm — Schall Law Firm — has taken up the task of investigating the investors’ claims against FTX for violations of the securities laws.
According to estimates, over 1 million people have lost their lives savings as a result of financial fraud committed in the name of FTX CEO Sam BankmanFried. The law firm is investigating FTX to determine if it has made misleading statements or failed to disclose vital information in order to assist investors in recovering their losses.
In an official statement, Schall Law Firm highlighted how various media publications uncovered the cracks within FTX-Alameda operations, eventually leading to the crash of FTX’s in-house FTT tokens.
FTT token investors were advised by the law office to join in the drive by sharing any information related to their purchase or sale of FTT tokens. Investors need to know that unless the class gets certified — wherein the court determines that a class action is the best option to manage the multiple claims — they are not represented by an attorney.
Moreover, crypto entrepreneurs, including Tether executives and Binance CEO Changpeng ‘CZ’ Zhao, believe that SBF was proactively trying to destabilize the crypto market to save FTX.
Related: Sam Bankman-Fried’s parents no longer on the Stanford Law School roster
FTX recently hired a team of financial forensic investigators to track down the investors’ lost money. The firm’s primary goal is to conduct “asset-tracing” to identify and recover the missing digital assets.
On Nov. 22, a lawyer — James Bromley, a partner at law firm Sullivan & Cromwell — representing FTX debtors stated that “a substantial amount of assets have either been stolen or are missing” from FTX. Additionally, he disclosed that Chainalysis, a blockchain analytics firm, had been called in to assist with the proceedings.