- FTX directors filed that the funds had been deployed for Sam Bankman-Fried’s “private aggrandizement” quite than precise scientific developments and innovation.
- Bankman-Fried’s NGO Latona obtained over $71 million from the crypto trade and sister agency Alameda Analysis between February and October 2022.
- The bankrupt crypto agency had recovered $5 billion in buyer money and cryptocurrencies as of January 2023, legal professionals for the trade mentioned.
Chapter CEO John Ray and the FTX chapter staff filed to get well tens of millions in buyer funds redirected to Sam Bankman-Fried’s Latona, a Bahamas-based non-profit group targeted on supporting scientific innovation.
The crypto trade and sister agency Alameda Analysis transferred $71.5 million to the FTX Basis and SBF’s NGO Latona which then invested the cash in life science corporations like Lumen Bioscience, Genetic Networks, and GreenLight Biosciences.
Attorneys for the bankrupt crypto trade argued that Latona was a sham NGO touted to serve altruistic functions when in actuality, the agency used commingled funds from Alameda and FTX accounts for “Bankman-Fried’s private aggrandizement”.
Whereas purporting to make these investments for altruistic functions Bankman-Fried actually pursued these transactions as a result of he believed that doing so would generate goodwill and amass political capital and affect for himself.
FTX Fund Restoration
Directors for the bankrupt crypto trade proceed to search out misappropriated funds from SBF’s management of FTX and Alameda Analysis. Attorneys mentioned chapter CEO John Ray and his staff had recovered $5 billion in buyer crypto and funds again in January.
In June, FTX attorneys filed to get well a further $700 million transferred to funding store K5 World in 2022. The lawsuit alleged that Bankman-Fried transferred tens of millions to K5 World co-founder Michael Kives and Bryan Baum after attending a celebration that includes high-profile attended like ex-presidential candidate Hillary Clinton.
Entities just like the New York Metropolitan Museum additionally plan to return funds donated by Bankman-Fried’s corporations in a bid to stem authorized clawback and dangerous press.