Crypto Exchange FTX and Alameda Seek to Retrieve $71 Million from Philanthropic and Life Science Entities Defunct cryptocurrency exchange
FTX and its sister company Alameda Research are seeking clawbacks from FTX's philanthropic arm and other life science entities.
According to court documents
filed on Wednesday, the firms are seeking
to recover more than $71 million that was allegedly diverted from the FTX Foundation and “Latona” – a “sham non-profit company organized in the Bahamas” –
for ex-FTX boss Sam Bankman Fried (SBF)’s personal aggrandizement and political influence.
Lawyers representing FTX and Alameda Research argued that the funds were transferred
to life science companies, including Lumen Bioscience Inc. and Platform Life Sciences Inc., purportedly to support
“effective altruism” – a philosophy often espoused by SBF before his empire came crashing down.
The philosophy advocates for the redistribution of wealth
from wealthy individuals to those in need. However,
FTX’s lawyers claim that the true intention behind these transactions
was far from philanthropic.
“Bankman-Fried in fact pursued these transactions because he believed that doing so would generate goodwill and amass political capital and influence for himself," the lawyers said in the filing.
