The bankrupt cryptocurrency exchange, FTX has sued its Founder and former CEO Sam Bankman-Fried in an attempt to recover USD $1 billion. The funds are part of a larger sum of money allegedly misappropriated before the company’s collapse.
Additionally, the lawsuit, which was filed in bankruptcy court in Delaware, named Caroline Ellison, the former Chief Executive Officer of Alameda Research, Zixiao Gary Wang, the former Chief Technology Officer of FTX, and Nishad Singh, the company’s former Director of Engineering as defendants in the lawsuit.
Ellison, Wang, and Singh later surrendered to the authorities and pleaded guilty to charges including conspiracy to commit fraud and money laundering and violation of campaign finance laws. However, Bankman-Fried pleaded not guilty to all charges related to the FTX collapse in January and is set to face trial in October.
FTX’s lawyers accused the defendants of allegedly using money to finance parties, acquire luxury real estate, and invest in speculative business. According to the document presented before the court, the alleged fraudulent activities were carried out between February 2020 and November 2022, when FTX declared bankruptcy.
In addition to that, the lawsuit accused the defendants of not observing good corporate governance and putting their personal goals and aspiration before that of the exchange. Additionally, the lawsuit highlighted a lack of effective corporate controls in FTX.
Additional Charges
“The defendants created an environment in which a handful of employees had nearly unlimited power to direct fiat currency and cryptocurrency transfers and to hire and fire employees without effective oversight and control over how they exercised those broad powers,” FTX explained.
Finance Magnates reported yesterday (Thursday) that FTX’s bankruptcy lawyers planned to recover USD $71 million invested by the defunct exchange in life science companies. The lawyers said the donations were not motivated by philanthropic intentions but to gain Bankman-Fried political influence and goodwill. Additionally, the bankruptcy team plans to recover USD $323 million paid to the management of FTX Europe.
Meanwhile, reports surfaced yesterday (Thursday) of a possible phishing attack targeting FTX users. As reported by Coindeskusers of the exchange received suspicious password reset emails from the company’s official support email address.
The bankrupt cryptocurrency exchange, FTX has sued its Founder and former CEO Sam Bankman-Fried in an attempt to recover USD $1 billion. The funds are part of a larger sum of money allegedly misappropriated before the company’s collapse.
Additionally, the lawsuit, which was filed in bankruptcy court in Delaware, named Caroline Ellison, the former Chief Executive Officer of Alameda Research, Zixiao Gary Wang, the former Chief Technology Officer of FTX, and Nishad Singh, the company’s former Director of Engineering as defendants in the lawsuit.
Ellison, Wang, and Singh later surrendered to the authorities and pleaded guilty to charges including conspiracy to commit fraud and money laundering and violation of campaign finance laws. However, Bankman-Fried pleaded not guilty to all charges related to the FTX collapse in January and is set to face trial in October.
FTX’s lawyers accused the defendants of allegedly using money to finance parties, acquire luxury real estate, and invest in speculative business. According to the document presented before the court, the alleged fraudulent activities were carried out between February 2020 and November 2022, when FTX declared bankruptcy.
In addition to that, the lawsuit accused the defendants of not observing good corporate governance and putting their personal goals and aspiration before that of the exchange. Additionally, the lawsuit highlighted a lack of effective corporate controls in FTX.
Additional Charges
“The defendants created an environment in which a handful of employees had nearly unlimited power to direct fiat currency and cryptocurrency transfers and to hire and fire employees without effective oversight and control over how they exercised those broad powers,” FTX explained.
Finance Magnates reported yesterday (Thursday) that FTX’s bankruptcy lawyers planned to recover USD $71 million invested by the defunct exchange in life science companies. The lawyers said the donations were not motivated by philanthropic intentions but to gain Bankman-Fried political influence and goodwill. Additionally, the bankruptcy team plans to recover USD $323 million paid to the management of FTX Europe.
Meanwhile, reports surfaced yesterday (Thursday) of a possible phishing attack targeting FTX users. As reported by Coindeskusers of the exchange received suspicious password reset emails from the company’s official support email address.
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