Tag: FTX

MIAX completes acquisition of FTX subsidiary LedgerX

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The Miami International Securities Exchange (MIAX), owned by Miami International Holdings, has completed the acquisition of LedgerX, which was one of the FTX assets court-approved for sale in January. LedgerX is an exchange and clearinghouse regulated by the United States Commodity Futures Trading Commission (CFTC).  The acquisition of LedgerX was “an important part of our growth strategy, expanding our ability to offer new and innovative products to the swaps and futures industry,” CEO of Miami International Holdings (MIH) Thomas Gallagher said in a statement. MIAX is one of a suite of…

FTX pursues $244M clawback from ‘wildly inflated’ Embed acquisition deal

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FTX’s leadership is looking to claw back more than $240 million from insiders and executives that benefited from FTX’s “wildly inflated” acquisition of stock-clearing platform Embed in September. Cointelegraph reported yesterday that a lawsuit was filed against former FTX CEO Sam Bankman-Fried and other top FTX insiders on May 17 concerning the Embed acquisition, which they allege was conducted without enough due diligence.  However, on the same day, a separate lawsuit was filed seeking to claw back funds from Embed’s CEO Michael Giles and its shareholders, accusing FTX of paying…

Cryptocurrency Exchange FTX Files Lawsuit Against Former CEO and Executives Over Controversial Acquisition

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Cryptocurrency exchange FTX has taken legal action against its former CEO Sam Bankman-Fried, co-founder Zixiao Wang, and former senior executive Nishad Singh. The lawsuit stems from the controversial $220 million acquisition of stock-clearing platform Embed, with FTX lawyers claiming a lack of due diligence in the transaction. In a filing on May 17, FTX alleged that it had acquired Embed through its United States subsidiary without conducting thorough due diligence. Following FTX’s bankruptcy filing, the court approved the sale of Embed and other FTX assets, but the highest bid for…

U.S. Court Asked to Reverse Decision on Appointment Independent Examiner in FTX Bankruptcy

Although parties to the FTX case have complained about the “alleged” costs associated with appointing an examiner, for “both legal and practical purposes, any costs associated with appointing an examiner do not justify departure from the statutory requirement to appoint an examiner where, as here, the statutory criteria are met,” DOJ Trustee Andrew R. Vara said in the filing. Source

FTX leadership sues Sam Bankman-Fried over $220M deal made prior to bankruptcy

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FTX lawyers are suing former CEO Sam Bankman-Fried, co-founder Zixiao Wang, and former senior executive Nishad Singh over the $220 million acquisition of stock-clearing platform Embed, alleging lack of due diligence.  According to a May 17 filing, FTX had paid $220 million to acquire Embed through its United States subsidiary after having allegedly “performed almost no due diligence” on the platform. After FTX filed for bankruptcy, the judge in charge of the proceedings approved the sales of Embed and other assets of FTX, but the top bidder for the platform offered just…

FTX Founder Sam Bankman-Fried’s Ties to George Santos Are a Thread in a Web of Lies

This information was puzzling when it first emerged – Santos had no clear connection to FTX, and no apparent interest in crypto or any other issues Bankman-Fried feigned concern about. According to Puck News, though, the explanation for the Santos connection is relatively straightforward. Salame’s girlfriend, Michelle Bond, former CEO of the FTX-backed crypto trade group Association for Digital Asset Markets, ran for Congress in 2022 as a MAGA Republican, in a district near Santos’. Source

Lawsuit against FTX celebrity promoters gets backup from former exec

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A class action lawsuit against celebrities who allegedly promoted the now-bankrupt FTX has scored the cooperation of a former exchange executive — ex-compliance chief Daniel Friedberg. A May 11 proposed amended complaint filed in a Florida District Court from the class action lawyers said Daniel Friedberg provided evidence that promotional activity for FTX originated from Florida. Friedberg was the chief regulatory officer at FTX and the chief compliance officer of FTX US, the exchange’s United States arm. The declaration could potentially rebut a key defense made by some of the…

IRS Files Claim against FTX & Affiliates, Seeks $44B in Unpaid Taxes

In its claim, the IRS alleged that FTX, Alameda, and co failed to report transactions and activities for a sustained period.  The US Department of Treasury and Internal Revenue Service (IRS) has filed a $44 billion claim against FTX and its subsidiaries. In the documents, dated April 27th and 28th, the IRS alleged that the embattled crypto exchange and its affiliated entities owe the revenue service $44 billion. The Washington, DC-based federal revenue service agency said the unpaid claims were due to FTX failing to report several transactions properly. The single most significant…