Former crypto king Sam Bankman-Fred has been sued by the company he founded – E24

Former crypto king Sam Bankman-Fred has been sued by the company he founded – E24

Crypto firm FTX, the company Sam Bankman-Fried founded and drove to failure, has sued its former CEO.

Here, Sam Bankman-Fried is escorted out of a New York courtroom in March of this year.
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It is the leaders of the company’s restructuring who sued Sam Bankman-Fried, after the company was declared bankrupt in dramatic fashion last November.

It’s reports financial times.

The lawsuit is an attempt by the estate at restructuring to get more money back from Bankman-Fried to the crypto company’s creditors. The lawsuit is after stock payments, real estate purchases, money transfers and other transfers that the company says should be reversed.

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Among other things, one of the directors at the company is said to have transferred $22.5 million to himself as a bonus and invested it in the AI ​​research firm, according to the lawsuit.

The restructuring is being led by attorney John Ray, who previously led the restructuring of Enron — which collapsed in the wake of the dotcom bubble of the 2000s.

Ray said of FTX that he had not seen “such a complete failure of corporate governance and such absence of reliable financial information”.

Meltdown and billions on the way

Last fall, Sam Bankman Fried cryptocurrency exchange FTX crashed. The company filed for bankruptcy protection in the United States, and Bankman-Fried stepped down as CEO shortly thereafter.

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FTX has been among the largest and most popular cryptocurrency companies in recent years. Within a week, the company collapsed as a result of liquidity pressures. A large number of the company’s clients tried to withdraw their money in a short time.

The bankruptcy caused massive turmoil in the cryptocurrency markets. After that, many of the largest cryptocurrencies in the world weakened by more than 20 percent in one week.

It turns out that $662 million, more than 6.5 billion kronor, mysteriously disappeared from FTX after filing for bankruptcy. This is despite the fact that the authorities in the Bahamas, where the company is headquartered, have frozen all assets in the company.

In December, Bankman Fried was arrested in the Bahamas at the request of the US authorities, and then extradited to the United States.

Charges against the former cryptocurrency top include fraud and money laundering which could cost investors, customers and lenders several billion dollars. Fees were later expanded.

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Dalila Awolowo

Dalila Awolowo

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