FTX founder Bankman-Fried sued in US court over yield-bearing crypto

By JODY GODOY, Reuters

Published November 16, 2022 10:54pm

In this file photo taken on February 9, 2022, Samuel Bankman-Fried testifies during a Senate committee hearing about "Examining Digital Assets: Risks, Regulation, and Innovation," on Capitol Hill in Washington, DC. Saul Loeb/ AFP

FTX founder Sam Bankman-Fried has been sued in US court by investors alleging the company's yield-bearing crypto accounts violated Florida law, according to court papers.

The proposed class action filed late Tuesday night in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the US

When the crypto exchange faltered on liquidity concerns, US investors sustained $11 billion in damages, the lawsuit alleges.

The lawsuit seeks damages from Bankman-Fried and a number of celebrities who allegedly helped promote FTX, including National Football League quarterback Tom Brady and tennis star Naomi Osaka. — Reuters

Tags: FTX, cryptocurrency, cryptocurrencies, Sam Bankman-Fried, business and industry