Tag: FTX

FTX sues Sam Bankman-Fried and other former execs to claw back $1B

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FTX has sued former CEO Sam Bankman-Fried and several other former key executives from the now-bankrupt crypto exchange to recover more than $1 billion in misappropriated funds.  A July 20 complaint filed in a United States Bankruptcy Court named former Alameda Research CEO Caroline Ellison, FTX co-founder Zixiao “Gary” Wang, former FTX engineering director Nishad Singh and Bankman-Fried as defendants.  In the lawsuit, FTX claimed the defendants breached their fiduciary duties by allegedly misappropriating customer funds on a “continuous basis to finance luxury condominiums, political and ‘charitable’ contributions, speculative investments and…

FTX sues over investments, donations made by charity arm to life sciences companies

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FTX’s efforts to claw back customer funds are continuing. Alameda Research and FTX filed suit on July 19 seeking the return of $71.6 million in allegedly commingled corporate and customer funds related to investments and donations to life sciences companies. The defendants in the suit are six life sciences companies, the FTX Foundation philanthropical organization, the Latona Biosciences Group “sham” nonprofit, former FTX CEO Sam Bankman-Fried, FTX Foundation head Nicholas Beckstead and Latona head Ross Rheingans-Yoo. The suit claims that the FTX Foundation and Latona donated or invested funds in…

Terraform Labs seeks access to FTX wallets in fraud defense

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Terraform Labs is seeking permission from a judge to subpoena data from bankrupt crypto exchange FTX, claiming the information could help its defense against a lawsuit brought by the United States Securities and Exchange Commission in February, a court filing shows.   In a search for evidence that could back its defense from fraud charges, Terraform’s lawyers filed a motion on July 19 in FTX’s bankruptcy case to access the company’s information about digital wallets used by short sellers between March and May 2022. Terraform claims its stablecoin failure was a…

SBF and FTX Get Spoofed in Animated Comedy Starring T.J. Miller

Announced at Comic-Con, “FORTUN3,” which premieres this fall, will serve as a kind of origin story for SBF and FTX – the products of an easy-money culture mixed with unbridled tech optimism, explains John Attanasio, co-founder and CEO of Toonstar. Besides the FTX parody, viewers can expect references to other business boondoggles driven by egomaniacs with a messiah complex (think: Theranos and WeWork). T.J. Miller of “Silicon Valley” fame will voice the SBF clone. Source

Financial Stability Board Calls for Tougher Global Crypto Norms After FTX, Celsius Scandals

The Financial Stability Board (FSB), which groups regulators from some two dozen jurisdictions, including the U.S., EU, China and the U.K., published recommendations to ensure “consistent and comprehensive” regulation of the sector. The recommendations build on proposals originally floated in October and are focused on preventing the kind of behavior alleged to have been carried out by companies such as FTX and Celsius. Source

FTX victim raises $450k for liquid token startup

FTX victim, who lost over 90% of his net worth following the collapse, successfully raised $450,000 from his recently launched trading fund. Belgian resident Kasper Vendeloock recently launched Musca Capital, a new fund that trades liquid tokens. The venture is supported by Hashmask NFT project founders and two other investors. With the funds raised, Vandeloock aims to rebuild his trading systems and implement automated strategies. He will begin by trading liquid tokens on centralized exchanges. Vandeloock strives to recover from a substantial financial setback resulting from the collapse of the…

Former FTX CEO wants to exempt friends from security checks

Former FTX CEO Sam Bankman-Fried wants his close friends to visit him at his parents’ home without undergoing security checks.  On July 13 Bankman-Fried’s lawyers submitted a letter to New York District Court Judge Lewis Kaplan, seeking an exemption for court-approved visitors from the security measures mandated in his bail conditions. The current bail conditions mandate the presence of a security guard at the residence to screen visitors for electronic devices and the requirement for visitors to sign an electronic visitor log. However, Bankman-Fried’s legal team argued that only his…