Future FinTech Group Faces Legal Challenges Following Court Judgments

Future FinTech Group Inc. (NASDAQ:FTFT) has recently encountered legal obstacles, as disclosed in a Form 8-K filing with the Securities and Exchange Commission. The company has been embroiled in a legal dispute with FT Global Capital, Inc., a former placement agent, since January 2021. The lawsuit, filed in the Superior Court of Fulton County, Georgia, alleged breaches of an exclusive placement agent agreement dating back to July 2020.

Following a series of legal proceedings, the United States District Court for the Northern District of Georgia entered a judgment against Future FinTech Group awarding FT Global $10,598,379.93, which includes damages, prejudgment interest, and attorney’s fees. A post-trial motion challenging the judgment was filed by the Company on May 9, 2024, and remains pending.

In response to the judgment, the Southern District of New York ordered Future FinTech Group to turn over its shares in subsidiary companies for auction to satisfy the outstanding amount owed to FT Global. The United States Marshal for the Southern District of New York oversaw the auction, where various subsidiaries’ securities were sold for $25,000 to Alec Orudjiev, the general counsel of FT Global, on December 18, 2024.

The legal battle escalated further as FT Global sought a turnover order for unissued shares of Future FinTech Group’s common stock to be sold to satisfy the judgment. The Company, contesting this motion, believes that these shares are not existing assets and are subject to corporate governance principles, Florida corporate law, and federal securities regulations. Future FinTech Group intends to oppose the motion and is evaluating its legal options.

Despite these legal challenges, Future FinTech Group remains committed to defending its position vigorously. The Company has appealed the turnover order of the Southern District of New York concerning the auction of securities of its subsidiaries in Hong Kong and China to the United States Court of Appeals for the Second Circuit. Future FinTech Group is awaiting the final decision of the Court of Appeals and will continue to navigate the legal proceedings in response to these developments.

For further updates and details on the ongoing legal matters, investors and stakeholders are advised to monitor future disclosures from Future FinTech Group as the situation evolves.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Future FinTech Group’s 8K filing here.

Future FinTech Group Company Profile

Future FinTech Group Inc, through its subsidiaries, operates online shopping platforms in People’s Republic of China. It operates in three segments: Supply Chain Financing Service and Trading Business, Asset Management Service, and Others. The company offers cross-border money transfer service, brokerage and investment banking, and cryptocurrency mining farm business.