Brazil-based FTX customers organize to file class action lawsuit

A group of customers of the recently collapsed FTX are organizing to file a lawsuit against the company. The suit is reportedly being led by Ray Nasser, CEO of Arthur Mining, and will be brought by customers who had more than $100,000 on the exchange at the time of its bankruptcy.

Brazilian customers to file suit against FTX

The recent collapse of the crypto-currency exchange FTX has created problems for customers around the world, who are at a loss as to how to proceed. Brazilians are no exception, and one of them is leading a group to organize and take legal action against the exchange.

The group is led by Ray Nasser, CEO of Arthur Mining, a Brazilian-run crypto-currency mining company. The executive said that while his company was not exposed to the FTX debacle, he wants to help those around him who have suffered losses. He explained:

My company has no exposure to FTX, but we need to support those who have supported us all these years among investors and partners and help them as much as possible. A lot of people have been hurt.

Ray Nasser’s class action lawsuit will be brought by FTX customers who had more than $100,000 on the platform at the time the company’s funds were frozen. The lawsuit will be filed in the jurisdiction of the United States or the Bahamas, where the exchange was headquartered.

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Employees caught off guard

Antonio Neto, director of FTX in Brazil, communicated that the stock market drop took him by surprise and that he thought the company had the liquidity to handle massive withdrawals. In a message sent to the Telegram group of the stock exchange in Brazil on November 11, Neto said: he was also the victim of an unexpected situation. He stated:

All my personal funds and investments were also trapped in FTX, these are losses that are hard to swallow. But the hardest part is the frustration of believing in something and sharing it with my family and friends who were also taken by surprise.

According to an article by Coingecko, Brazil was the tenth most affected country by the FTX bankruptcy. Brazilian users represented 2.8% of the site’s traffic, with an average of 134,000 monthly visits. Colombia was the second largest Latin American country on the list, with 1.3% of monthly traffic.

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