According to court documents, the bankrupt cryptocurrency exchange FTX and its subsidiary company Alameda Analysis are owed well over $71 million by its charity arm and other life science organizations. This latest attempt follows similar steps taken by FTX as the now-defunct company seeks to recover misused monies. By June 2023, the corporation had already recovered almost $7 billion.
The court documents state that Sam Bankman-Fried’s “private aggrandisement” was the purpose of the payments made to the company’s charitable arm. The payments were made under the pretext of altruism, a concept centred in the redistribution of riches to the most vulnerable, according to the agency’s attorneys. Instead, the records state that the donations were made to strengthen the former CEO’s reputation and political influence.
Among the businesses that received these donations are Platform Life Sciences Inc. and Lumen Bioscience Inc. The New York Museum of Arts has promised to refund the $550000 it received in corporate donations as its part of the deal.
Many scandalous payments to politicians and celebrities made with clients’ money may involve the CEO. Due to the fall of the cryptocurrency market, the company has been working to recover monies that were improperly spent.
The company sued FTX Europe, its European subsidiary, earlier this month to recover $323 million from the company. According to the submission, Sam Bankman-Fried and colleagues strove to complement themselves in a number of ways, one of which was through the European expansion.
In addition, there have been other incidents involving wealthy individuals, politicians, and public figures. Close friends including Duncan Rheingans-Yoo, Sam’s brother, Gabe Bankman-Fried, and Xiaoyun “Lilly” Zhang have all been charged in the case.
If the recoveries are successful, FTX’s new management asserts that the company might be reborn. Sam Bankman-Fried, who has pleaded not guilty to the charges, maintains his innocence as the trial is set to begin in October.
