Jonathan S. Ziss, a partner in Goldberg Segalla’s Cybersecurity and Data Privacy practice group, recently discussed with Carrier Management the potential fallout surrounding the now-bankrupt cryptocurrency exchange, FTX.
“There are many meteorological indicators of a significant storm to come,” Jonathan said in the article titled FTX Liability Tentacles Spread Far, in which he talked about who might be held liable and what lawsuits may be forthcoming.
“Anyone who invested in FTX,” he said, “or was involved as an adviser or a partnering firm, is potentially exposed to litigation.”
Jonathan said he foresees numerous lawsuits against multiple members of the company. However, he noted some investors may also argue “that their financial advisers performed insufficient due diligence.”
Even with the numerous potential lawsuits facing FTX, Jonathan does not believe this will be the end of cryptocurrency investment.
“My sense,” he said, “is that FTX does not sound the death knell for crypto as an investment class.”
READ THE FULL ARTICLE HERE: “FTX Liability Tentacles Spread Far,” Carrier Management, January 26, 2023
MORE ABOUT GOLDBERG SEGALLA’S JONATHAN S. ZISS:
Jonathan S. Ziss is co-chair of the firm’s Management and Professional Liability practice, chair of its Aviation Litigation practice, and a member of its Commercial Litigation and Cybersecurity practices. He devotes much of his practice to the representation of professionals, including accountants, attorneys, bankers, design professionals, insurance agents/brokers, directors and officers, and fiduciaries, in administrative and civil proceedings. He counsels and defends not-for-profit entities such as homeowners’ associations, faith-based organizations, and others, in management liability litigation as well as non-litigated disputes. Jonathan counsels clients and litigates, arbitrates, and mediates commercial disputes in a wide range of industries, from healthcare to hospitality. In addition, as a member of the firm’s cyber incident response team, he manages compliance and loss mitigation campaigns in the aftermath of data breaches.