Venture capital firms for allegedly manipulating customers for FTX were named as defendants in the class action lawsuit.
The legal processes of the crypto exchange FTX continue. Although FTX aims to return to the market with its restructuring plans, the litigation processes are not over.
In a class action lawsuit filed in the US District Court for the Northern District of California, venture capital firms including Temasek and Softbank were cited as defendants.
Venture capital firms worked for FTX?
Eighteen leading venture capital firms, including Temasek, Sequoia Capital, Sino Global, and Softbank, are at the table in FTX lawsuits.
These investment companies are allegedly aiding and abetting FTX scams. The class action lawsuit in the US alleges that FTX has built a stronghold for itself using all its crypto branches.
The venture capital firms involved in the lawsuit are accused of complicity in multibillion-dollar scams by making misleading statements about FTX and client incentives. The companies will appear in court as the defendants in the case. Temasek, one of the investment companies, is known as a company that receives the support of the Singapore government.
Venture capital firms can turn millions of dollars in assets in any crypto venture. According to the claim in the case, these companies have reflected their customer assets to FTX with the method of persuasion, thus putting money into FTX’s safe.
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