FTX founder Bankman-Fried sued in US court over yield-bearing crypto accounts

The proposed class action filed late Tuesday night in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the U.S. When the crypto exchange faltered on liquidity concerns, U.S. investors sustained $11 billion in damages, the lawsuit alleges.

FTX founder Sam Bankman-Fried has been sued in U.S. court by investors alleging the company's yield-bearing crypto accounts violated Florida law, according to court papers. The proposed class action filed late Tuesday night in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the U.S.

When the crypto exchange faltered on liquidity concerns, U.S. investors sustained $11 billion in damages, the lawsuit alleges. The lawsuit seeks damages from Bankman-Fried and a number of celebrities who allegedly helped promote FTX, including National Football League quarterback Tom Brady and tennis star Naomi Osaka.

Representatives for Brady, Osaka and Bankman-Fried did not immediately respond to requests for comment. FTX filed for bankruptcy and is facing scrutiny from U.S. authorities amid reports that $10 billion in customer assets were shifted from FTX to Bankman-Fried's trading company Alameda Research.

Reuters has reported that at least $1 billion in client funds are missing.