FT GLOBAL CAPITAL, INC. STEPS UP ITS ENFORCEMENT EFFORTS AGAINST FUTURE FINTECH TO COLLECT ON THE $10.8 JUDGMENT

Rhea-AI Summary

FT Global Capital, a Miami Beach-based broker-dealer, is intensifying efforts to collect a $10.8 million judgment against Future FinTech Group (Nasdaq: FTFT). The judgment stems from FTFT's failure to pay fees after raising over $80 million from investors introduced by FT Global. Key developments include:

1. A New York District Court order for FTFT to turn over subsidiary shares for sale.
2. Denial of FTFT's motion to quash a subpoena on its accounting firm.
3. FT Global's plans to pursue enforcement in additional jurisdictions and potentially against FTFT's officers and directors.

Despite these efforts, FTFT has not yet paid any part of the judgment, and it's uncertain if its subsidiaries have sufficient value to satisfy the amount owed.

Positive

• FT Global Capital secured a $10.8 million judgment against Future FinTech Group
• Court order granted for FTFT to turn over subsidiary shares for sale
• Subpoena on FTFT's accounting firm upheld, requiring disclosure of financial records

Negative

• Future FinTech Group failed to pay fees after raising $80 million from investors
• FTFT has not paid any part of the $10.8 million judgment
• Uncertainty about the value of FTFT's subsidiaries to satisfy the judgment
• Potential legal action against FTFT's officers and directors

MIAMI BEACH, Fla., Aug. 30, 2024 /PRNewswire/ -- FT Global Capital, Inc. ("FT Global"), a Miami Beach-based registered broker-dealer and investment banking firm, announced today that it has stepped up its enforcement efforts to collect on $10.8 million Judgment against Future FinTech Group Inc. (Nasdaq: FTFT) ("Future FinTech"). On January 14, 2021, FT Global brought this lawsuit based on Future FinTech's failure to pay fees after raising over $80 million from investors that FT Global introduced to Future FinTech.

On April 16, 2024, the U.S. District Court for the Northern District of Georgia entered an Amended Judgment in favor of FT Global against Future FinTech in the approximate amount of $10.8 million. Future FinTech later moved to vacate the Amended Judgment, but failed to post any bond. On May 21, 2024, the Court ruled that FT Global could enter the Amended Judgment in other Federal Districts, allowing FT Global to commence further enforcement proceedings. FT Global has entered the Amended Judgment in the Southern District of New York, among other courts. To date, Future FinTech has not yet paid any of the judgment.

On August 28, 2024, the District Court in New York granted FT Global's motion for an order directing FTFT to turn over the shares of its subsidiaries to be sold to satisfy the Amended Judgment. The Court's Order provides, in pertinent part, that "…Defendant shall turn over the shares, membership, or limited partnership interests in all of its subsidiaries, and the corporate seals of its China and Hong Kong-based subsidiaries, to the U.S. Marshal for auction or sale until the judgment is satisfied." While FT Global intends to work with the U.S. Marshal in connection with the foregoing, it is unclear if the subsidiaries have sufficient value to pay the Amended Judgment.

Earlier, FT Global, through its counsel, served a third-party subpoena on Fortune CPA, Inc., Future FinTech's independent public accounting firm, to obtain information relating to banking and financial accounts of Future FinTech. On August 8, 2024, the U.S. District Court for the Central District of California denied Future FinTech's motion to quash the subpoena, thus requiring Fortune CPA to turn over the requested records.

FT Global intends to continue with its enforcement effort, as appropriate, which may include seeking relief in additional jurisdictions in the United States, in foreign jurisdictions or against Future FinTech's officers and directors.

About FT Global Capital, Inc.

FT Global Capital, Inc. is an investment banking firm and a FINRA member firm based in Miami Beach, FL and New York, NY.

Olshan Frome Wolosky LLP, a New York law firm, serves as FT Global's litigation counsel. Eric Lang, Esq. of Lang Legal served as co-counsel.  FT Global has also retained local counsel in various jurisdictions to prosecute its enforcement effort, noted above.

About Future FinTech

Future FinTech Group Inc.'s filings made with the U.S. Securities and Exchange Commission are at https://www.sec.gov/edgar/search/#/ciks=0001066923&entityName=Future%2520FinTech%2520Group%2520Inc.%2520(FTFT)%2520(CIK%25200001066923).

Media Enquiries:

Alec Orudjev
General Counsel, FT Global Capital, Inc.
646-202-2619

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SOURCE FT Global Capital, Inc.

FAQ

What is the amount of the judgment FT Global Capital is trying to collect from Future FinTech Group (FTFT)?

FT Global Capital is trying to collect a $10.8 million judgment from Future FinTech Group (FTFT).

Why was the lawsuit filed against Future FinTech Group (FTFT)?

The lawsuit was filed because Future FinTech Group (FTFT) failed to pay fees after raising over $80 million from investors that FT Global Capital introduced to them.

What recent court order has been granted in favor of FT Global Capital against FTFT?

On August 28, 2024, a New York District Court granted an order directing FTFT to turn over the shares of its subsidiaries to be sold to satisfy the $10.8 million judgment.

Has Future FinTech Group (FTFT) made any payments towards the judgment?

No, as of the date of the press release, Future FinTech Group (FTFT) has not paid any part of the $10.8 million judgment.