FTX sues Sam Bankman-Fried and other former execs to claw back $1B
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 other pet projects."
Additionally, the lawsuit alleged the former executives "abused their control" over FTX and its related companies to commit "one of the largest financial frauds in history."
This is a developing story, and further information will be added as it becomes available.