In this article. FTX has filed 22 refund lawsuits, bringing the total number of hostile lawsuits to 30 in 10 days.
The exchange is also going after the Storybook Brawl team and Deltec Bank.
who allegedly stole nearly $1 billion from #FTX through market manipulation.
The administrators of bankrupt #cryptocurrency exchange FTX filed 22 hostile lawsuits on November 8, targeting various entities and individuals. Including this lawsuit, since November 11, 2022, FTX debtors have filed 51 lawsuits, 30 of which were filed in the last 10 days.
According to FTX's bankruptcy filing, most of the new lawsuits are against non-profit organizations to which FTX or its executives have donated money in the past and have no intention of paying it back. FTX has filed lawsuits against 26 nonprofit organizations, seeking refunds ranging from $10 million to as little as $BTC most of these organizations are political action committees (PACs) on both sides of the issue. If the court grants FTX's claims in all lawsuits, the failed exchange will receive $55,275,000. However, whether all proceedings will be successful is another question.
According to crypto investor Thomas Brazell, U. S. bankruptcy law allows for refunds under certain circumstances. In this case, it is important to determine if the donation is not refundable.
he states:
Under U. S. bankruptcy law, donations can be refunded if they were made with the intent to defraud creditors or without receiving equivalent value. This is often the case if the donation was made when the donor was insolvent.
Since FTX's bankruptcy trustee is already handling these donations, he believes these funds can be recovered. However, some creditors believe that not all of these lawsuits are worth the financial costs incurred by FTX's estate, and that lawyers appear to be trying to increase billable hours.
In addition to Storybook, FTX is suing Jean Shalopin, chairman of Deltec Bank, to recover $ 11.
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