The Schall Law Firm is taking up the cause of duped investors who lost money in the FTX Token (FTT) scam. It is estimated that around one million people have been financially ruined by the alleged fraud of FTX CEO Sam Bankman-Fried.
The firm is investigating the company for possible violations of securities laws, including issuing false or misleading statements or failing to disclose essential information.
If successful, the firm intends to pursue legal action against FTX to help the investors recoup their losses.
Schall Law Firm revealed that multiple media sources had documented the issues within FTX-Alameda’s operations and the resulting crash of FTT tokens.
The firm encouraged FTT investors to provide information about their purchase and sale of FTT tokens to take part in their initiative.
They noted, however, that the investors have no legal representation unless the court certifies a class action as the best way to manage the claims.
Crypto entrepreneurs, including Tether executives and Binance CEO Changpeng ‘CZ’ Zhao, suspect that SBF was attempting to destabilize the crypto market in order to save FTX.
To respond to this, FTX has hired a team of financial forensic investigators to track down the missing digital assets. The firm’s purpose is to identify and recover the lost funds for the investors.