FTX investors sue FTX lawyers while AI coins are pumping

It had been foretold for a while and now it’s finally happening. The dissatisfied former customers of the major crypto platform FTX have started a lawsuit against the legal team that handled the bankruptcy. Meanwhile in the broader altcoin market, we saw AI coins such as Worldcoin, the Graph and Render moon yesterday.

Sullivan & Cromwell

Investors who lost money due to the collapse of the major American crypto platform FTX in 2022 are still trying to get their money back in all kinds of ways. By now, they have started a lawsuit against the well-known law firm Sullivan & Cromwell.

S&V provided consulting services to FTX before it went bankrupt and then handled the bankruptcy itself. The investors now claim that the lawyers of S&V mainly enriched themselves instead of recuperating FTX funds for former customers.

The claims are not new and were already discussed in detail in the New York Times last September. They calculated that the group of law firms handling the bankruptcies of crypto firms like FTX, Celsius, Voyager digital and Genesis Global earned around 700 million dollars in fees.

All this while the former customers of those companies are still waiting for a refund. Investors have now had enough and are asking a judge to rule on whether the lawyers have done something wrong. Don’t expect a judgment anytime soon. Law firms will try to stall of course.

AI coins

As reported yesterday, Worldcoin, the AI coin of Sam Altman, the CEO of OpenAI, has risen sharply in the last week (158%), especially since the launch of Sora, the company’s new ‘text to video’ AI platform.

Other digital coins linked to AI followed in Worldcoin’s wake and rose sharply as well. Render went up 24% in the last week and the Graph rose 43% in the last seven days.

With less than 0.05 $ETH ($137), this trader made $176K on $SORA, a gain of 1280x!😱

He spent a total of 0.049 $ETH($137) to buy 16M $SORA and sold 12.36M $SORA for 36.57 $ETH($102,492), with 3.64M $SORA($74K) left, the total profit is ~$176K.https://t.co/Z43Vph9NTw pic.twitter.com/cdMjlYSl5D

— Lookonchain (@lookonchain) February 18, 2024

To give you an idea of just how crazy AI coins are rising: an anonymous trader bought Sora for $137, this is an unknown coin that simply had the same name as the latest AI program from Open AI, and sold it a few days later. Profit he made: $176,000 or 1,280 times his initial investment.

That Sora token has since crashed ever since other investors found out it had nothing to do with Open AI of course.