Kaplan Fox Investigates Liquidity Crisis at Cryptocurrency

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

If you have been affected by the recent revelations about FTX and would like to discuss our investigation, please contact us by email [email protected] or by calling (212) 687-1980.

As of November 2, 2022, news emerged that Alameda Research was facing a liquidity crunch after Alameda’s balance sheet leaked. According to a Coindesk article, an industry expert observed “It is fascinating to see that the majority of equity in the Alameda enterprise is actually FTX’s own centralized and printed token”.

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

FTX suspended client withdrawals earlier this week after being hit by around $5 billion in withdrawal requests, according to a tweet from Mr Bankman-Fried. The crisis forced FTX to scramble for an emergency investment. “We are spending the week doing everything we can to raise cash,” FTX CEO Sam Bankman-Fried said in a statement. Tweeter. As of this afternoon, FTX’s website for US users indicates that it is currently unable to process withdrawals and “strongly advises against” making deposits.

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

WHY CONTACT KAPLAN FOX – Kaplan Fox is a leading national law firm specializing in 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 background that clients demand. By pursuing cases at the federal and state levels, Kaplan Fox has successfully shaped the law by winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you can visit our website at www.kaplanfox.com.

If you have any questions regarding this survey, please contact:

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 687-1980
E-mail: [email protected]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: [email protected]

Comments are closed.