Millions in payments were made to celebrities and sports organizations to promote the failed cryptocurrency exchange, and FTX now wants claw back those payments as it faces lawsuits brought by investors and customers.
A massive scandal left FTX investors without access to their digital assets, and has resulted in a growing number of cryptocurrency exchange lawsuits throughout the federal court system.
Investors seek damages from celebrities and venture capital firms who failed to make sure the FTX cryptocurrency exchange was legally operated and stable before endorsing it publicly
At least 8 FTX cryptocurrency exchange class action lawsuits have been filed in federal courts over investment irregularities that led to the collapse.
It is believed the founder, Sam Bankman-Fried, used investors' cryptocurrency funds for illegal, risky investments in another firm, in violation of investment laws.
