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FTX seeks to claw $700M from Bankman Fried mates and affiliated funds

FTX has filed a lawsuit in the USA Chapter Courtroom for the District of Delaware towards a number of the funding corporations it had ties to earlier than its collapse. The go well with, filed June 22, contained 16 counts and seeks over $700 million from the defendants.

The lawsuit submitting named K5 World – an incubator and funding firm, Mount Olympus Capital and SGN Albany Capital, in addition to affiliated entities and K5 World co-owners Michael Kives and Bryan Baum, as defendants. Kives is a former agent for the CAA expertise company and former aide to Hilary Clinton. The go well with famous the then-CEO of FTX Sam Bankman-Fried (SBF) attended a social occasion hosted by Kives in 2022:

“True to Kives’s fame as a high-profile ‘super-networker,’ the attendees on the feast included a former Presidential candidate, high actors and musicians, actuality TV stars and a number of billionaires.”

Subsequently, the go well with alleged, FTX-affiliated crypto buying and selling agency Alameda Analysis transferred $700 million to Kives, Baum and K5 World, however they constructed the offers as coming from shell firms SGN Albany and Mount Olympus Capital.

Associated: FTX chapter will probably be ‘very costly’ however for a purpose: Auditor

The go well with seeks the return of funds transferred from Alameda Analysis that ended up in SGN Albany Capital and funds transferred from Kives, Baum and SGN Albany Capital to Mount Olympus Capital.

The transfers have been described as being carried out “with out receiving equal worth” and, crucially, as avoidable. In U.S. chapter legislation, an avoidable transaction is one that may be reversed beneath the Chapter Code or different legal guidelines.

Kives, Baum and SBF additionally developed shut private ties, with Baum even having his personal bed room within the FTX executives’ Bahamas residence, the go well with mentioned. After the FTX collapse, “Kives and Baum labored behind the scenes with Bankman-Fried on a method to search out somebody to bail out the FTX Group (and to guard their golden goose).”

9 of the counts within the go well with involved fund transfers. Kives and Buam have been personally charged with aiding and abetting breach of fiduciary responsibility and dishonest help, and SGN Albany Capital was charged with unjust enrichment.

Cointelegraph reached out to K5 World for remark however didn’t obtain an instantaneous response.

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