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FTX files lawsuit to recover $1 billion from former top executives while SBF father is accused of misappropriating company funds.
Cryptocurrency exchange FTX has filed a lawsuit seeking to recover over $1 billion from its former top executives. According to a July 20 court filing, the defendants breached their fiduciary duties and embezzled hundreds of millions of dollars from FTX, ultimately leading to the exchange's collapse. The lawsuit alleges that the top executives' fraudulent transfers could total more than $1 billion. Among the top executives accused are SBF, Ellison, CTO Zixiao “Gary” Wang and Nishad Singh. The lawsuit emphasizes that these executives put their personal interests ahead of the interests of the companies they managed. Also in the lawsuit, FTX claims that…
FTX files lawsuit to recover $1 billion from former top executives while SBF father is accused of misappropriating company funds.
Cryptocurrency exchange FTX has filed a lawsuit seeking to recover over $1 billion from its former top executives. According to a July 20 court filing, the defendants breached their fiduciary duties and embezzled hundreds of millions of dollars from FTX, ultimately leading to the exchange's collapse. The lawsuit alleges that the top executives' fraudulent transfers could total more than $1 billion.
Among the top executives accused are SBF, Ellison, CTO Zixiao “Gary” Wang and Nishad Singh. The lawsuit emphasizes that these executives put their personal interests ahead of the interests of the companies they managed. Also in the lawsuit, FTX alleges that SBF's father, Bankman-Fried, misused company vaults for his own defense.
According to FTX, SBF illegally ordered a transfer of $10 million from an FTX US account to its own account on the same exchange. SBF's father then transferred $6.775 million from this fund to personal accounts at Morgan Stanley and TD Ameritrade, reducing the balance in the FTX US account to $3.225 million. Due to cryptocurrency trading losses, the current balance on FTX’s US account is now $2.2 million.
It is important to note that all top executives, with the exception of SBF, have already pleaded guilty to criminal charges brought by the US government.
Through the lawsuit, FTX hopes to recover much of the embezzled funds and receive compensation for the collapse of the exchange. The case is expected to reveal more details about the top executives' fraudulent activities. The future of FTX remains uncertain as the exchange struggles to recover from financial losses caused by the illegal actions of its former top executives.