By lesenews
A judge has given EthereumMax (EMAX) investors suing a list of celebrities over their alleged endorsements of the defunct cryptocurrency a third and final shot at an amended class action complaint. Meanwhile, Sam Bankman-Fried’s college roommate testified about FTX’s $8 billion deficit before its bankruptcy and the FTX exploiter has suddenly started transferring funds.
Judge gives EMAX investors final shot at class suit
The judge presiding over the EthereumMax (EMAX) investor class action gave a final chance for the plaintiffs to amend their lawsuit against celebrities they accuse of promoting the now-defunct cryptocurrency.
In an Oct. 3 order, United States District Court Judge Michael Fitzgerald gave EMAX investors a third try at submitting an amended complaint — but warned its their last time to get it right.
“Plaintiffs have repeatedly failed to cure the deficiencies identified by the Court and were explicitly warned that this would be their last opportunity to amend.”
The suit alleges boxing champion Floyd Mayweather, pro basketball star Paul Pierce and reality TV personality Kim Kardashian and others promoted EMAX — which the suit called a “pump and dump” scheme.
Last year, the suit was dimissed but was revived in June after the judge refused to throw out the plaintiff’s “unfair competition” claims against the celebrities.
Yedidia testifies in SBF criminal case
Adam Yedidia, a former FTX developer and roommate of Sam Bankman-Fried, testified in court about the financial connection between the crypto exchange and sister company Alameda Research.
The connection between the two companies is one of the key pieces in Bankman-Fried’s alleged fraud. According to Yedidia, he informed Bankman-Fried about a bug in FTX’s code that ensured “Alameda’s liabilities did not decrease,” which ultimately resulted in an $8 billion error.
And now, Mark Cohen and his assistant – #SBF‘s defense counsel. pic.twitter.com/c3Xh8PHbYB
— Cointelegraph (@Cointelegraph) October 5, 2023
“[H]ow long until we’re bullet proof again?” Yedida asked Bankman-Fried while still employed atht ecompany. “[He said] six months to three years. He looked nervous.”
Yedidia said he resigned from FTX once he found out that “Alameda had used customer deposits to pay its loans.”
FTX exploiter moves $36.8 million in Ether as Sam Bankman-Fried’s trial starts
The crypto wallet address linked to the FTX exploiter moved roughly $36.8 million worth of Ether in the last 24 hours amid the ongoing court trials of the defunct crypto exchange’s ex-CEO, Sam “SBF” Bankman-Fried.
Accounts linked to FTX and FTX US were drained of $600 million on Nov. 11, 2022, hours after the crypto exchange had filed for Chapter 11 bankruptcy.
After nearly 10 months of silence, the FTX exploiter began siphoning out the stolen funds, starting with a transfer of 10,250 ETH worth $17.1 million via four addresses between Sept. 30 and Oct. 1, confirms data from Spot On Chain.
Since Sept. 30, a total of 67,500 ETH has been transferred out of five out of the 15 wallet addresses linked to the FTX exploiter.
Out of the lot, 64,948 ETH ($108 million) was transferred through the THORchain router and 52 ETH (worth $84,000) to the Railgun contract. The remaining 2,500 ETH ($4.19 million) was swapped for Bitcoin (tBTC).
The trial of SBF in connection with the collapse of FTX began on Oct. 3. The entrepreneur has pleaded not guilty to all seven counts of fraud and money laundering charges.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.