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Kaplan Fox Investigates Cryptocurrency Liquidity Crisis

NEW YORK, November 10, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating possible claims related to cryptocurrency exchange platform FTX Trading LTD d/b/a FTX, FTX US , its founder and CEO Sam Bankman-Fried, and Alameda Research, a related-party cryptocurrency trading firm.

If you have been affected by the recent revelations about FTX and would like to discuss our investigation, please contact us by email jcampisi@kaplanfox.com or by calling (212) 687-1980.

As of November 2, 2022, news emerged that Alameda Research was facing a liquidity crisis after Alameda’s balance sheet was leaked. According to a Coindesk article, one industry insider observed: “It is fascinating to see that the majority of the net capital in the Alameda business is actually the centrally controlled FTX token printed out of thin air.”

It was then revealed that FTX CEO Sam Bankman-Fried told an investor this week that Alameda owes FTX about $10 billion. FTX reportedly made loans to Alameda using money customers had deposited with the exchange for business purposes. FTX reportedly had $16 billion in client assets and lent more than half of its client funds to Alameda.

FTX halted customer withdrawals earlier this week after it received approximately $5 billion worth of withdrawal requests, according to a tweet from Bankman-Fried. The crisis forced FTX to seek an emergency investment. “We spent the week doing everything we can to increase liquidity,” FTX CEO Sam Bankman-Fried said in a tweet. As of this afternoon, the FTX website for US users says that it is currently unable to process withdrawals and “strongly discourages” making deposits.

This press release may be considered attorney advertising in some jurisdictions under applicable law and ethical standards.

WHY CONTACT KAPLAN FOX – Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. With more than 50 years of complex litigation experience, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases at the federal and state levels, Kaplan Fox has successfully shaped the law by winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you can visit our website at www.kaplanfox.com.

If you have any questions about this research, please contact:

Jeffrey P. Campisi
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 687-1980
Email: jcampisi@kaplanfox.com

Laurence D King
1999 Harrison Street, Suite 1560
Oakland, Calif. 94612
(415) 772-4704
Fax: (415) 772-4707
Email: lking@kaplanfox.comox.com

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