FTX Sues SBF, Former Execs to Recover Over $1 Billion
Crypto exchange FTX is trying to regain $1 billion in a lawsuit against
founder Sam Bankman-Fried (SBF) and some former executives. FTX’s new management argues the funds were misappropriated
through dubious deals and transactions made before the coin trading platform went bankrupt last fall.
Besides Bankman-Fried, among the defendants named in the suit are co-founder and former FTX Chief Technology Officer
Gary Wang, former CEO of SBF’s Alameda Research hedge fund
Caroline Ellison, and former FTX Engineering Director
Nishad Singh.
The transfers took place
between February 2020 and November 2022, when the company sought Chapter 11 protection. According to FTX, these transfers can be reversed
under the U.S. Bankruptcy Code or Delaware law as they were made before the bankruptcy
filing on Nov. 11.
The lawsuit alleges that the fraudulent transactions included
over $725 million of equity that FTX and West
Realm Shires, another entity controlled by SBF, awarded
“without receiving any value in exchange.”
