NASSAU, BAHAMAS — A San Francisco-based law firm specializing in class action lawsuits says that it is investigating claims by “an increasing number of Bahamian residents” that FTX and its partners illegally promoted the benefits of its investments while failing to disclose the “volatile and highly leveraged” nature of their accounts.
The law firm states that led by former CEO Sam Bankman-Fried, a legal resident of the Bahamas, and CEO of Alameda Research, Caroline Ellison, FTX enlisted numerous celebrities and high-profile franchises to create a worldwide FTX presence resulting in billions of investment dollars infused from individuals around the globe.
“Unbeknownst to the consumers, FTX’s business was constructed and promoted with flimsy corporate controls and dubious financial information that led to the collapse of FTX in November of 2022,” the law firm stated.
“As a result of this collapse, consumers that were induced to invest by misleading advertisement campaigns launched by FTX have been unable to withdraw the money they deposited in FTX’s services, as FTX does not have nearly enough liquid funds to honor money deposited with them.”
The law firm claims that if a person is a Bahamian resident who invested money with FTX, “they may be entitled to recover investments that resulted from FTX’s suspected fraud, corporate malfeasance and/or misleading advertising initiatives.”
Individuals are being urged to contact the firm for a free, confidential consultation to determine whether they may have a viable claim for damages as part of the FTX lawsuit.
Attorney General Ryan Pinder in a national address on Sunday praised the Securities Commission for its “swift and decisive” decisions in response to the abrupt collapse of crypto exchange giant FTX, stating that any attempt to lay the entirety of the blame for FTX debacle on this nation is a “gross oversimplification of reality.”
Pinder, during a national address on behalf of the government on the FTX developments, slammed what he called “ill-informed” speculation on the matter as he dismissed assertions that FTX came to The Bahamas because it did not want to submit to regulatory scrutiny.