FTX Seeks to Recover $700 Million from Sam Bankman Fried’s Funds24. Juni 2023
• FTX has filed a complaint in bankruptcy court to retrieve $700 million from former Hilary Clinton aide and his investment firm, K5 Global.
• The funds were sent to Kives, K5 Global and Baum after Bankman-Fried attended a social event hosted by Kives in 2022.
• The company claims that the transfer of funds was done without receiving equivalent value and can be reversed under the Bankruptcy Code or other laws.
FTX Sues for $700 Million
Now-defunct cryptocurrency exchange FTX has sued a former aide of Hilary Clinton and the former aide’s investment firm, K5 Global, to retrieve $700 million in funds. On Thursday, the company filed a complaint in Wilmington, Delaware, bankruptcy court asking back the money its founder Sam Bankman-Fried transferred to K5 entities in 2022.
The lawsuit names K5 Global, Mount Olympus Capital, and SGN Albany Capital as well as affiliated entities and co-owners Michael Kives and Bryan Baum as defendants. It claims that Bankman-Fried was „profligate patron“ who sent millions to them after he attended a social event hosted by Kives in 2022.
Questions Over Funds
According to the complaint, FTX-affiliated crypto trading firm Alameda Research transferred funds to Kives, Baum, and K5 Global from shell companies SGN Albany and Mount Olympus Capital without receiving equivalent value. The suit even claimed that a shell company controlled by Sam Bankman-Fried used $214 million in funds from FTX for an questionable investment involving Kendall Jenner’s 818 Tequila brand.
FTX has sought the return of funds transferred from Alameda Research that ended up in SGN Albany Capital and funds transferred from Kives, Baum, and SGN Albany Capital Mount Olympus Capital. The suit described these transfers as being carried out “without receiving equivalent value” which can be reversed under the Bankruptcy Code or other laws if necessary .
FTX Costs Increase During Process
As FTX is scrambling to recover the lost funds , costs have increased due to delays caused by legal processes .