Commingling and misuse of customer and corporate funds occurred from the inception of FTX, says current CEO John J. Ray III. Source
FTX Bankruptcy Team Says the Exchange Owed Customers $8.7B
Tag: FTX
Tokenized FTX claim is used as collateral for a loan
A creditor of now-bankrupted crypto exchange FTX pledged a claim as collateral for a loan in the decentralized finance (DeFi) protocol Arcade. The transaction was the first on-chain loan backed by a FTX claim, according to the bankruptcy claims platform Found. The claim worth $31,307 was tokenized and its ownership represented by a nonfungible token (NFT). The NFT was then used on June 23 as a collateral for a $7,500 loan to be repaid in five days. In the event of a payment default, the lender is entitled to the…
Mainstream media challenge decision to protect FTX customers: Report
The four major media outlets advocating for the release of FTX customer names have opposed the decision to seal them. Meanwhile, a crypto lawyer told Cointelegraph that “there is clear evidence” of potential harm if the names were to be disclosed. According to a June 23 Reuters report, Bloomberg, Dow Jones & Company, The New York Times, and the Financial Times have appealed Judge Dorsey’s decision to seal the names of FTX customers from the public. The decision to allow FTX to “permanently redact” the names of individual customers from all…
FTX files $700m lawsuit against investment firm tied to Hillary Clinton aide
Bankrupt crypto exchange FTX has taken legal action by filing a lawsuit against a former aide to Hillary Clinton and the aide’s investment firm. The exchange seeks to reclaim $700 million in investments that it alleges were made using misappropriated FTX funds. According to court documents, FTX’s founder, Sam Bankman-Fried, authorized the transfer of $700 million to entities affiliated with K5 Global, an investment firm led by former Clinton aide Michael Kives and co-founder Bryan Baum. FTX claims that Bankman-Fried allowed this transfer as part of a scheme to misuse…
Sequoia partner says investing in FTX was the right move: Report
American venture capitalist Alfred Lin, a partner at Sequoia Capital, stood up for the firm’s multimillion-dollar investment in the now-bankrupt crypto exchange FTX. Speaking at Bloomberg’s Tech Summit, Lin said if he were tasked with evaluating FTX again for the first time, Sequoia would likely make the same investment decision. “I looked at the work we did in 15 different ways. […] We probably would have made the investment again,” Lin reportedly stated. Sequoia Capital has about $85 billion of assets under management, with investments in major technology companies and…
K5 Global Sued to Court by FTX, May Pay $700 Million
The suit was filed at the United States Bankruptcy Court for the District of Delaware. Bankrupt FTX exchange has filed a lawsuit against K5 Global – an investment firm owned by a former aide to Hillary Clinton. According to a Reuters report, the suit was filed at the United States Bankruptcy Court for the District of Delaware. It contains 16 counts against the defendants and seeks to recover about $700 million from them. According to the filing, the defendants include K5 Global, Mount Olympus Capital, SGN Albany Capital, their affiliates,…
FTX seeks to claw $700M from Bankman Fried friends and affiliated funds
FTX has filed a lawsuit in the United States Bankruptcy Court for the District of Delaware against some of the investment firms it had ties to before its collapse. The suit, filed June 22, contained 16 counts and seeks over $700 million from the defendants. The lawsuit filing named K5 Global – an incubator and investment company, Mount Olympus Capital and SGN Albany Capital, as well as affiliated entities and K5 Global co-owners Michael Kives and Bryan Baum, as defendants. Kives is a former agent for the CAA talent agency and…
FTX bankruptcy will be ‘very expensive’ but there’s a reason: Auditor
Fees charged by the lawyers and the restructuring team working on the bankrupt crypto exchange FTX have topped $200 million in just over seven months, but an independent auditor argues it makes sense, given the mammoth task. On June 20 the court-appointed fee examiner, Katherine Stadler, filed a 47-page report on the fees charged by the law firms in the roughly three months following FTX’s Nov. 11 bankruptcy and concluded they were not “wholly unreasonable in the moment.” She remarked on the “largely unregulated financial system” in which FTX operates,…
FTX Incurred More than $121M in Legal and Advisory Fees between February 1 and April 30
SBF is expected to return for a court hearing later this year, when all the investigations will be tabled for the judge to rule on the matter. The bankrupt cryptocurrency exchange FTX and its sister investment firm Alameda Research are nowhere near making the creditors whole again. With more than $8 billion missing from FTX and Alameda Research’s balance sheet according to John J. Ray III – the acting CEO – the court will not have a ride in the park dividing the remaining assets among hundreds of institutional investors…
FTX incurs over $120m in advisor fees as bankruptcy costs mount
FTX, the bankrupt crypto exchange, faces significant legal and advisory costs, with filings revealing that fees and expenses between February 1 and April 30 amounted to $121.8 million. The data, compiled by The Block Research, shows that FTX’s lawyers at Sullivan & Cromwell billed the exchange $37.6 million during that period, representing 30.9% of the total fees and expenses. Restructuring consultants at Alvarez and Marsel charged $37 million, while investment banking firm Jefferies billed the lowest amount at 0.6% of the total fees and expenses. The expenses include various items…