The post FTX Pursues Asset Recovery Through New Lawsuits Targeting Political Donations and Market Manipulation appeared on BitcoinEthereumNews.com.

FTX’s aggressive legal strategy intensifies as it files more than 20 lawsuits aimed at recovering substantial losses tied to fraudulent activities. The recent lawsuits target entities involved in political donations and other dealings, spotlighting the failed crypto exchange’s push to reclaim misappropriated funds. “These lawsuits signal a pivotal moment for FTX’s recovery efforts,” remarked a legal analyst, underscoring their potential impact on the industry. FTX pursues over 20 new lawsuits in its quest to recover $1 billion in losses, targeting political donations, fraud cases, and prominent figures. FTX Pursues $1 Billion Recovery Through Legal Action The latest legal maneuvers by FTX come as part of its ongoing bankruptcy proceedings and highlight the exchange’s intent to address the widespread financial damages suffered by its customers. The lawsuits predominantly contend with various allegations ranging from misappropriated funds to market fraud and manipulation, collectively estimated to exceed $1 billion in losses. Since initiating bankruptcy proceedings in late 2022, FTX has filed a strategic total of 51 adversary actions, with a significant portion emerging in recent weeks. These actions primarily focus on key claims involving political contributions made with customer funds, indicating a broader strategy to recover assets linked to former executives and parties involved in managing the failed exchange. Legal Framework for Asset Recovery According to Thomas Braziel, founder of 117 Partners, FTX is utilizing U.S. bankruptcy law to reclaim donations that were diverted with fraudulent intent. He asserts that funds can be reclaimed if they were given without equivalent value or if the donor was insolvent at the time of the donation. “Not all donations are immune from recovery; bankruptcy trustees scrutinize intent, timing, and the financial state of the debtor to determine eligibility for clawbacks,” Braziel explained. These newly filed lawsuits represent FTX’s determined effort to hold accountable not only the…

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Filed under: News - @ November 9, 2024 11:40 pm