FTX Files Multiple Lawsuits Against SBF and His Allies
FTX has filed multiple lawsuits in the U.S. Bankruptcy Court, District of Delaware yesterday May 17 to recoup funds from former CEO, Sam Bankman-Fried popularly called SBF, former FTX executives, and other parties that profited from Embed Financial Technologies’ acquisition.
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FTX Trading along with Alameda Research and West Realm Shires (Plaintiff) sued former CEO Sam Bankman-Fried, Nishad Singh, and Gary Wang in a lawsuit.
FTX also filed separate lawsuits to recover funds from Embed founder Michael Giles and venture capital firms.
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Recall that on 9 May, Sam Bankman-Fried had asked the U.S. District Judge Lewis Kaplan to dismiss most of the charges against him saying some charges were based on a theory of fraud.
SBF also believes a recent Supreme Court decision limiting the scope of fraud prosecutions makes him eligible for charges to be dismissed.
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Earlier on Feb 16, 2023, the FTX founder Sam Bankman-Fried left the Manhattan federal court in New York and sought dismissal of criminal charges against him in a court filing.
Sam Bankman said the prosecutors have improperly made federal crimes out of civil and regulatory issues that resulted from an industrywide collapse of cryptocurrency markets dubbed the “crypto winter.”
The Prosecutors in December 2022 alleged that Bankman-Fried defraud investors and looted customer deposits on FTX to make real estate purchases, lavish donations to politicians, and make risky trades at Alameda Research, Bankman’s cryptocurrency hedge fund trading firm.
U.S. Attorney Damian Williams called it one of the biggest frauds in U.S. history.
New charges were added to the indictment in March 2023 alleging that Bankman-Fried violated the anti-bribery provisions of the Foreign Corrupt Practices Act by directing the payment of $40 million in bribes to Chinese officials to free up $1 billion in cryptocurrency that was frozen in early 2021.
Bankman-Fried’s lawyers maintained the government disapproves of the cryptocurrency industry, FTX, and even Mr. Bankman-Fried – “but this does not give it license to turn them into federal crimes,” they said.
Sam Bankman-Fried was the former chief executive officer and founder of FTX Cryptocurrency Derivatives Exchange. Bankman filed for bankruptcy for FTX on 11 November, 2022.
Several allegations of fraud were filed against the 30 year old Sam Bankman and he was granted bail on $250 million bond and has been living in Palo Alto, California, with his parents since pleading not guilty to looting billions of dollars from FTX.
With the ongoing developments, what fate awaits Sam Bankman?
