FTX tries to reclaim $ 700 million that were allegedly issued after a networking party

FTX tries to reclaim $ 700 million that were allegedly issued after a networking party

In order to regain as many assets as possible and possibly even restart FTX, the new management of the insolvent stock exchanges has submitted applications from previous business partners and donation recipients.

Requirements against former managers, including SBF itself, were also submitted, although the amounts that may be reimbursed by managers are fade -out compared to the amounts required by other platforms such as Genesis.

false investments

yesterday the legal team from FTX filed a lawsuit against several hedge funds, including SGN Albany Capital, K5 Global and Mount Olympus Capital. In the document, companies associated with these hedge funds as well as the K5 executives Bryan Baum and Michael Kives are also called.

According to the application, Sam Bankman-Fried had gone to one of the many networking events organized by the two top managers. After this incident, SBF invested around $ 700 million in the funds managed by the defendants.

Although this in view of the amounts that the FTX Group regularly invested in different activities, as a superficial amount may appear, they supposedly had no real meaning.

"Bankman-Fried, Kives and Baum have signed a simple term sheet, which says that" Sam Bankman-Fried or a connected company "personally gives $ 125 million from Kives and Baum and would invest billions of dollars in K5 globally and associated companies [...]. The term sheet was little more than a superficial list of investment ideas and repeatedly stated that the actual "mechanics" of these very extensive investments later "in the long -term documents" were drawn up. Although the parties had not agreed on final conditions, the funds were transferred the day after signing. ”

Apart from the charges for unjustified enrichment that were raised against the hedge funds themselves, Kives and Baum was also accused of aid for duty to loyalty to loyalty in "one of the greatest financial fraud cases in history".

ftx wants to reclaim $ 800 million from K5 Global, Olympus Capital, SGN Albany and others.

The accused will continue to be accused of aid to SBF, unfair aid and unjustified enrichment. pic.twitter.com/ipcdetufxl

-ftx 2.0-coalition (@aftxcreditor) 22. June 2023

keep new friends close

In court proceedings, it also says that shortly after the meeting an internal FTX announcement was brought into circulation, in the SBF "raved" by the connections available via the couple. SBF seemed to be striving to "work with them on democratic politics" and "maybe invest in them or something, no idea."

The relationship took a while, and huge amounts were invoiced and invested between the companies - many of which themselves seemed to be exaggerated or incorrectly to the notorious laxies from FTX.

When it became clear that FTX was shortly before the demise, “Kives and Baum worked with Bankman-Fried behind the scenes on a strategy to find someone who saves the FTX Group (and protects its golden goose).”

If the lawsuit is successful, FTX may be back up to $ 700 million. According to reports, the actual amount that is invested in the networks of Kives and Baum is much higher.

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