FTX Yield-Bearing Accounts

Investigation

Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of FTX yield-bearing account (“YBAs”) holders. YBA holders are encouraged to obtain additional information and assist the investigation. 

 

The investigation concerns FTX's decision to lend customer assets to an affiliated trading firm to fund risky investments.

 

On November 10, 2022 the Wall Street Journal published an article titled "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall." The article claimed that FTX advanced roughly $10 billion worth of customer assets to an affiliated trading firm, Alameda Research – a firm known for aggressive trading strategies funded by borrowed money – to "fund risky" bets. The article continues to state that FTX's Chief Executive Officer’s, Sam Bankman-Fried, "told an investor this week that Alameda owes FTX about $10 billion" and that he “described [the decision] as a poor judgment call." That same morning, Mr. Bankman-Fried tweeted that about $5 billion worth of customer withdrawals were requested on Sunday, forcing FTX to pause withdrawals earlier this week. FTX was then forced to "scramble for an emergency investment."

 

If you are aware of any facts relating to this investigation or are a YBA holder,

you can assist this investigation. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484. 

 

Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits.  The firm has recovered hundreds of millions of dollars for investors nationwide.  Attorney advertising. Prior results do not guarantee similar outcomes.