Kaplan Fox Investigates Liquidity Crisis at Cryptocurrency Platform FTX

NEW YORK, Nov. 10, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating potential claims concerning the crypto exchange platform FTX Trading LTD d/b/a FTX, FTX US, their founder and CEO Sam Bankman-Fried, and Alameda Research, a related party cryptocurrency trading firm.

If you have been affected by the recent revelations concerning FTX and would like to discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling (212) 687-1980.

Starting on November 2, 2022, news emerged that Alameda Research faced a liquidity crisis after Alameda’s balance sheet was leaked. According to a Coindesk article, one industry expert observed “It’s fascinating to see that the majority of the net equity in the Alameda business is actually FTX’s own centrally controlled and printed-out-of-thin-air token”.

Then it was revealed that FTX Chief Executive Sam Bankman-Fried told an investor this week that Alameda owes FTX about $10 billion. FTX reportedly extended loans to Alameda using money that customers had deposited on the exchange for trading purposes. FTX reportedly had $16 billion in customer assets and lent more than half of its customer funds to Alameda.

FTX paused customer withdrawals earlier this week after it was hit with roughly $5 billion worth of withdrawal requests, according to a tweet from Mr. Bankman-Fried. The crisis forced FTX to scramble for an emergency investment. “We’re spending the week doing everything we can to raise liquidity,” FTX CEO Sam Bankman-Fried said in a tweet. As of this afternoon, FTX’s website for U.S. users says that it is currently unable to process withdrawals and “strongly advises” against making deposits.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

WHY CONTACT KAPLAN FOX – Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in complex litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.

If you have any questions about this investigation, please contact:

Jeffrey P. Campisi
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 687-1980
E-mail: jcampisi@kaplanfox.com

Laurence D. King
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.comox.com

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