The crypto company FTX, the company that Sam Bankman-Fried founded and led until it collapsed, has now sued its former CEO.
Here, Sam Bankman-Fried is escorted out of a courtroom in New York in March this year. Photo: DREW ANGERER / AFPPublished: Published:
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It is the leaders of the restructuring of the company who have sued Sam Bankman-Fried, after the company was declared bankrupt in dramatic fashion last November.
It reports Financial Times.
The lawsuit is an attempt by the estate in the restructuring to get more money back from Bankman-Fried to the creditors of the crypto company. The lawsuit is after share payments, property purchases, money transfers and other transfers that the company says should be reversed.
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Among other things, one of the managers in the company is said to have transferred 22.5 million dollars to himself in bonus and invested it in an AI research company, according to the lawsuit.
The restructuring is led by lawyer John Ray, who previously led the restructuring of Enron – which collapsed in the aftermath of the dotcom bubble in the 2000s.
Ray said of FTX that he had never seen “such a complete failure of corporate governance and an absence of credible financial information.”
Collapse and billions on the way
Last fall, Sam Bankman-Fried’s crypto exchange FTX collapsed. The company filed for bankruptcy protection in the US, and Bankman-Fried stepped down as CEO soon afterwards.
FTX was among the largest and most high-profile crypto companies in recent years. Within a week, the company collapsed, as a result of a liquidity squeeze. A large number of the company’s customers tried to withdraw their funds in a short time.
The bankruptcy created enormous turbulence in the crypto markets. Afterwards, several of the world’s largest cryptocurrencies weakened by more than 20 percent in one week.
It turned out that 662 million dollars, over NOK 6.5 billion, mysteriously disappeared from FTX after the bankruptcy application had been submitted. This is despite the fact that the authorities in the Bahamas, where the company has its head office, had frozen all assets in the company.
In December, Bankman-Fried was arrested in the Bahamas at the request of the US authorities, and then extradited to the US
The charges against the former crypto top include fraud and money laundering which may have cost investors, customers and lenders several billion dollars. The charge has subsequently been further expanded.
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2023-07-22 19:39:40
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