Donnahue George filed the emergency motion alleging that Bankman-Fried, Caroline Ellison, and other defendants created large quantities of AMC-related tokenized instruments without owning actual AMC shares. George claimed these synthetic instruments continue to distort AMC's market price and cause ongoing harm to investors like himself. The lawsuit targets the collapsed FTX exchange's tokenized stock offerings, which George argues were misrepresented as being backed by underlying securities.
Judge Hunt found that George failed to meet the preliminary injunction standard established in Winter v. NRDC, particularly regarding likelihood of success on the merits and irreparable harm. 'While criminal convictions of certain defendants are established facts, Plaintiff has not demonstrated how past misconduct at a defunct exchange creates ongoing harm requiring immediate injunctive relief,' Hunt wrote in the order. The judge noted that FTX ceased operations in 2022 following Bankman-Fried's arrest.
The case was filed in January 2025 as George sought to prevent what he characterized as continued market manipulation through unbacked tokenized securities. George had requested broad injunctive relief requiring defendants to provide full accounting of all AMC-related instruments and prohibiting misrepresentations about asset backing. The motion included a proposed order that would have required defendants to verify and disclose backing for any AMC-linked tokenized securities.
The denial leaves George's underlying securities fraud and civil RICO claims pending, but removes the prospect of immediate injunctive relief. The case highlights ongoing litigation fallout from FTX's collapse, with Bankman-Fried currently serving a 25-year federal prison sentence. Legal experts note that proving ongoing harm from a defunct exchange's past operations presents significant challenges for investors seeking forward-looking relief.