FTX legal woes are about to kick off as US law firm Rosen announces plans to sue the company.
Rosen Law Firm, a global investor rights law firm, has launched an investigation into potential securities claims made by investors of FTT tokens, the native cryptocurrency of embattled crypto exchange FTX.
According to a press release, the move enables Rosen to file a lawsuit against FTX to help FTT investors recover their losses.
“The Rosen Law Firm is preparing a class action seeking recovery of investor losses,” the announcement read.
Investors With Losses Of Up to $100k
Notably, FTT investors are entitled to compensation without making any form of payment via a contingency fee arrangement. Investors of FTT who suffered huge losses above $100k are advised to contact Rosen’s injury lawyer, Phillip Kim, Esq, for more information about the class action.
Furthermore, victims of FTT collapse are asked to select qualified counsels with a track record of success in leadership roles, adding:
“Often, firms issue notices that do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not litigate securities class actions. Be wise in selecting counsel.”
Rosen has been involved in several crypto-related litigations. The law firm played an important role in the class action against the executives of TerraForm Labs, the team behind the collapsed Terra project.
FTT Massive Collapse
According to reports, investors of FTT suffered huge losses over the weekend that plunged the value of their holdings. FTT, trading around $25, plummeted to $2.2 this week after Binance announced it would liquidate its position in FTT.
The announcement led to a series of troubles for FTX and its execs, including a huge hole of over $6 billion in Alameda Research’s balance sheet. Despite FTX’s claims that everything was fine with the exchange, users were seen moving their funds out of the trading platform for fear that FTX was facing bankruptcy.
While many investors are concerned about their funds getting stuck if FTX goes bankrupt, some crypto stakeholders stressed that the industry should be more concerned about Alameda Research’s possible collapse. Alameda Research has a significant investment in numerous cryptocurrency projects, which will put the entire crypto market at risk.
Recall that the US department of justice and SEC are investigating the FTX collapse, and Tether has started to freeze FTX USDT accounts on authorities’ request.
At press time, FTT is changing hands at $3.28, up over 10% in 24 hours.