Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
FTX Leadership Seeks Return of Over $1B in Cash, Stocks From Former Executives

FTX Leadership Seeks Return of Over $1B in Cash, Stocks From Former Executives

CoindeskCoindesk2023/07/21 08:14
By:Sam Reynolds

A lawsuit alleges that fraudulent transfers of cash and shares were used to finance political donations, real estate buys, Sam Bankman-Fried’s criminal defense, and even potentially an island.

FTX Founder Sam Bankman-Fried being extradited back to the United States from the Bahamas (Royal Bahamas Police Force)

The estate for bankrupt crypto exchange FTX is looking to recover over $1 billion in cash and shares from founder Sam Bankman-Fried and other executives it alleges were fraudulently transferred to themselves.

The , filed Thursday, alleges that the defendants used their close control over the FTX Group's businesses and systems to perpetrate what it calls a massive fraud between February 2020 and November 2022, squandering FTX’s assets on luxury homes, political and "charitable" contributions, and various investments.

According to the filing, FTX issued more than $725 million worth of equity to Bankman-Fried, former CTO and Co-Founder Gary Wang, Director of Engineering Nishad Singh, and former Alameda Research CEO Caroline Ellison. Of this $725 million, $447.8 million allegedly went to Singh, and the lawsuit documents how it was recorded as a loan between Singh, trading arm Alameda and FTX.

“In reality, no one paid for the shares, and no one intended to do so,” the lawsuit reads.

The lawsuit also alleges that FTX transferred $4.86 million to the group in order to purchase real estate, and Bankman-Fried’s father, Allen “Joe” Bankman, received $10 million from Alameda to be used for legal expenses.

It also says that Gabriel Bankman-Fried, Sam’s brother, planned to purchase the nation of Nauru – a small island northeast of Australia – with FTX Foundation funds, and more than $100 million in political donations to both parties and political action committees were made from funds mixed with FTX customer money.

Caroline Ellison, with the U.S. Attorney’s Office of the Southern District of New York, is accused of awarding herself a $22.5 million bonus at the height of FTX’s crisis last November.

Recently, the U.S. Department of Justice asked a court to silence Bankman-Fried from making out-of-court statements about the case after he to the New York Times.

Edited by Sandali Handagama.

172

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

6 Reasons XRP Price Could Hit $1 This Summer (Opinion)

Many are wondering if XRP can reach $1 anytime soon. Well, here are a few reasons in support.

Cryptopotato2024/07/21 16:55
6 Reasons XRP Price Could Hit $1 This Summer (Opinion)