FTX has filed a lawsuit in the USA Chapter Courtroom for the District of Delaware towards among the funding corporations it had ties to earlier than its collapse. The swimsuit, filed June 22, contained 16 counts and seeks over $700 million from the defendants.
The lawsuit submitting named K5 World – an incubator and funding firm, Mount Olympus Capital and SGN Albany Capital, in addition to affiliated entities and K5 World co-owners Michael Kives and Bryan Baum, as defendants. Kives is a former agent for the CAA expertise company and former aide to Hilary Clinton. The swimsuit famous the then-CEO of FTX Sam Bankman-Fried (SBF) attended a social occasion hosted by Kives in 2022:
“True to Kives’s popularity as a high-profile ‘super-networker,’ the attendees on the ceremonial dinner included a former Presidential candidate, prime actors and musicians, actuality TV stars and a number of billionaires.”
Subsequently, the swimsuit alleged, FTX-affiliated crypto buying and selling agency Alameda Analysis transferred $700 million to Kives, Baum and K5 World, however they constructed the offers as coming from shell corporations SGN Albany and Mount Olympus Capital.
Associated: FTX chapter shall be ‘very costly’ however for a purpose: Auditor
The swimsuit seeks the return of funds transferred from Alameda Analysis that ended up in SGN Albany Capital and funds transferred from Kives, Baum and SGN Albany Capital to Mount Olympus Capital.
The transfers had been described as being carried out “with out receiving equal worth” and, crucially, as avoidable. In U.S. chapter legislation, an avoidable transaction is one that may be reversed below the Chapter Code or different legal guidelines.
FTX strikes to claw again $800 million from K5 World, Olympus Capital, SGN Albany et al.
Defendants are additional accused of aiding and abetting SBF, dishonest help and unjust enrichment. pic.twitter.com/IPcDEtuFxL
— FTX 2.0 Coalition (@AFTXcreditor) June 22, 2023
Kives, Baum and SBF additionally developed shut private ties, with Baum even having his personal bed room within the FTX executives’ Bahamas residence, the swimsuit mentioned. After the FTX collapse, “Kives and Baum labored behind the scenes with Bankman-Fried on a technique to seek out somebody to bail out the FTX Group (and to guard their golden goose).”
9 of the counts within the swimsuit involved fund transfers. Kives and Buam had been personally charged with aiding and abetting breach of fiduciary obligation and dishonest help, and SGN Albany Capital was charged with unjust enrichment.
Cointelegraph reached out to K5 World for remark however didn’t obtain a right away response.
Journal: Are you able to belief crypto exchanges after the collapse of FTX?
