FTX Sues Bankman-Fried, Others Over $220 Million Embed Deal
05/18 20:10
FTX Trading Ltd. has filed a lawsuit against Sam Bankman-Fried and other former leaders of the bankrupt crypto empire for allegedly using misappropriated funds to buy an "essentially worthless" stock-clearing firm in 2022 for $220 million. FTX claims that Bankman-Fried and other former company insiders orchestrated "a series of self-dealing transactions" that enabled FTX to acquire Embed Financial Technologies Inc. at a "wildly inflated" price. The sale amounts to a fraudulent transfer that entitles FTX to claw back the money, FTX said. The company insiders "surreptitiously and unlawfully diverted and transferred assets belonging to FTX.com" to fund the transaction, believing it would help the company expand into conventional securities markets and enhance their own riches.
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