Tag: FTX

FTX Sues Ex-Employees of Salameda as It Seeks to Recover $157M

The defendants allegedly used their connections on the inside to ensure that their withdrawals were prioritized over those of other customers. Bankrupt crypto exchange FTX has sued former employees of its Hong Kong-based affiliate Salameda in hopes of recovering $157.3 million. According to a Thursday filing, Salameda was being controlled by the firm’s ex-CEO, Sam Bankman-Fried. New Filing against Ex-Employees of Salameda Reveals ‘Shady’ FTX Withdrawals The filing claims that 5 individuals and two companies are behind several withdrawals that took place in the days leading up to FTX’s bankruptcy.…

FTX opens lawsuit against former employees of Hong Kong affiliate

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Defunct cryptocurrency exchange FTX filed a lawsuit on Sept. 21 against former employees of the Hong Kong-incorporated company Salameda, which was previously affiliated with the FTX group, according to court documents. The court filing says FTX seeks to recover $157.3 million that it claims was fraudulently withdrawn in the hours before the exchange filed for bankruptcy. According to the filing, Michael Burgess, Matthew Burgess and their mother, Lesley Burgess, as well as Kevin Nguyen and Darren Wong, along with two other companies, allegedly held ownership of companies with registered accounts…

Investors buy $250M of FTX claims — Report

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The bankruptcy claims market has been growing bullish on the debts of the collapsed cryptocurrency exchange FTX as major credit investors have been rushing to buy FTX debts. Investors like Silver Point Capital, Diameter Capital Partners and Attestor Capital have purchased more than $250 million worth of FTX debts so far in 2023, Bloomberg reported on Sept. 21, citing an in-house analysis of public court filings. The FTX debt has also attracted investors like Hudson Bay Capital Management, which reportedly bought a $23 million FTX claim and subsequently sold about…

Understanding How FTX Founder Sam Bankman-Fried’s Trial May Play Out

Though the trial is scheduled to begin next month, there’s still some time before the actual arguments are made. The first step, which may occur as soon as next week, is a final pretrial conference where Southern District of New York Judge Lewis Kaplan will lay out what a final witness schedule may look like, how long the trial date may be and rule on any final outstanding motions. Judge Kaplan may also entertain a few motions after the jury is selected, said Martin Auerbach, an attorney at law firm…

Stanford University to Return Millions in Gifts Linked to FTX amid Controversy

The move comes shortly after the beleaguered crypto exchange FTX filed a lawsuit against the parents of its founder, Joseph Bankman and Barbara Fried, both distinguished professors at Stanford Law School. Stanford University has decided to return millions of dollars in gifts it received from the now-bankrupt crypto exchange FTX following allegations of impropriety involving the parents of FTX’s founder Sam Bankman-Fried (SBF). The gifts in question, initially received by Stanford from the FTX Foundation and related entities, were purportedly intended for pandemic-related prevention and research initiatives, according to a…

Stanford to return millions in crypto donations from FTX

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The California-based university Stanford University said it plans to return all funds it received from the now defunct cryptocurrency exchange FTX, according to a report from Bloomberg.  Stanford received a total of $5.5 million in gifts from FTX-related entities in the timespan between November 2021 and May 2022. In an email statement on Sept. 19, a university spokesperson said: “We have been in discussions with attorneys for the FTX debtors to recover these gifts and we will be returning the funds in their entirety.” The statement from Stanford clarified that…

Stanford University, Home of Sam Bankman-Fried’s Professor Parents, Will Return ‘Gifts’ Donated by FTX: Report

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Parents of Sam Bankman-Fried Sued by FTX Estate Over Allegedly Siphoning Funds From Crypto Exchange: Report

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The parental guardians of former FTX CEO Sam Bankman-Fried are reportedly being sued by the crypto exchange’s bankruptcy estate for allegedly misappropriating funds. According to a new article from the Financial Times, Joseph Bankman and Barbara Fried are being sued by the FTX estate over allegedly siphoning funds from the now-bankrupt exchange. Says prosecutors, “As early as 2018, Bankman described Alameda as a ‘family business’ — a phrase he repeatedly used to refer to the FTX Group.” However, Bankman and Fried’s lawyers say the allegation is “a dangerous attempt to intimidate…