FTX Token ($FTT) Investor Settlement
Now ANY CRYPTO INVESTOR who was damaged directly or “indirectly” by FTX collapse can JOIN CASE!
FTX has reached a tentative settlement to resolve investor claims tied to the collapse of FTX, the handling of customer funds, Alameda’s FTT exposure, and the role of related parties in the crisis.
Outline:
On November 2, 2022, a report said Alameda Research held a large amount of FTT and that Bankman-Fried had transferred billions in FTX funds to support it. On November 7, Binance said it would sell its FTT position, adding to pressure on the token and the exchange. On November 8 and 9, FTX’s liquidity crisis deepened as Binance first agreed to explore a deal, then walked away, while regulators and the press revealed more about the situation. FTT crashed, FTX filed for bankruptcy, and the matter has now moved to a tentative settlement.
Timeline:
November 2, 2022: CoinDesk reported that a significant portion of Alameda Research’s assets consisted of FTT tokens and that Bankman-Fried had transferred at least $4 billion in FTX funds to support Alameda.
November 7, 2022: Binance CEO Changpeng Zhao said Binance would sell its entire FTT position, worth at least $580 million.
November 8, 2022: Zhao said Binance had entered into a non-binding agreement to acquire FTX because of a liquidity crisis.
November 9, 2022: Bloomberg reported that the SEC and CFTC were investigating FTX and its connections to Bankman-Fried’s holdings.
November 9, 2022: The Wall Street Journal reported that Binance would not proceed with the FTX deal, and FTX said it was not processing withdrawals.
November 11, 2022: FTX filed for Chapter 11 bankruptcy in the United States, and Bankman-Fried stepped down as CEO.
Background:
FTX had been one of the biggest names in crypto, and FTT was closely tied to confidence in the exchange. At the start of 2022, investors valued FTX at about $32 billion, and Sam Bankman-Fried’s wealth was estimated at more than $17 billion.
The crisis intensified on November 2, 2022, when reporting said Alameda Research held a large concentration of FTT and that Bankman-Fried had transferred billions in FTX funds to support Alameda. Investors say those revelations raised immediate concerns about leverage, related-party exposure, and the true condition of FTX.
Pressure increased further on November 7, when Binance said it would sell its FTT holdings. The next day, Binance said it had signed a non-binding deal to acquire FTX because of a liquidity crisis, but that proposal quickly collapsed.
On November 9, reports said regulators were investigating FTX and that Binance would not move forward with the deal. FTX also said it was not processing withdrawals, and FTT fell more than 85% over three days, wiping out more than $2.2 billion in market value.
Two days later, FTX filed for Chapter 11 bankruptcy and Bankman-Fried stepped down as CEO. Investors say the events support claims of fraud, breaches of fiduciary duty, and possible manipulation involving FTX, Alameda, and other connected parties.
The matter is now in partial settlement proceedings. Several First Tranche settlements have already received preliminary approval, and plaintiffs have filed for preliminary approval of a Second Tranche of settlements. The claims process is not open yet because the Court still needs to approve the coordinated notice and claims schedule.
What Can Investors Expect Now?
FTX has reached a tentative settlement to resolve investor claims tied to the collapse of FTX, the handling of customer funds, Alameda’s FTT exposure, and the role of related parties in the crisis.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons or entities who, within the applicable limitations period, purchased or held legal title or beneficial interest in fiat or cryptocurrency deposited or invested through an FTX Platform, enrolled in a Yield-Bearing Account (YBA), or purchased FTT (FTX Token), and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.