{"id":22435,"date":"2023-07-21T07:23:44","date_gmt":"2023-07-21T07:23:44","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-files-lawsuit-against-former-executives-over-alleged-misappropriation-of-funds\/"},"modified":"2023-07-21T07:23:44","modified_gmt":"2023-07-21T07:23:44","slug":"ftx-files-lawsuit-against-former-executives-over-alleged-misappropriation-of-funds","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-files-lawsuit-against-former-executives-over-alleged-misappropriation-of-funds\/","title":{"rendered":"FTX Files Lawsuit Against Former Executives Over Alleged Misappropriation of Funds"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Sam Bankman-Fried, a former CEO of cryptocurrency exchange FTX, and other former senior personnel are the targets of legal action by the exchange in an effort to recover more than $1 billion in monies that were allegedly misused. The defendants are accused of violating their fiduciary obligations and conducting one of the biggest financial scams in history in the complaint, which was filed in a US bankruptcy court.<\/p>\n

The Allegations<\/strong><\/h2>\n

The previous executives, according to FTX,<\/strong><\/a> constantly misappropriated consumer monies to pay for opulent real estate purchases, political donations, speculative investments, and individual side projects. According to the complaint, they allegedly established an atmosphere in which a small number of workers had minimal control over the movements of fiat and cryptocurrency assets.<\/p>\n

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The lawsuit also claims that the defendants gave themselves shares worth over $725 million without giving anything back to the business. A further $546 million is alleged to have been stolen by Bankman-Fried and Wang and used to fund the Robinhood trading platform.<\/p>\n

Former Alameda Research CEO Caroline Ellison is accused of taking $28.8 million in compensation for herself and investing $10 million of that money in an artificial intelligence business.<\/p>\n

Suspicious Transfers and Code Modifications<\/strong><\/h2>\n

According to FTX, Bankman-Fried made a $10 million \u201cgift\u201d from his FTX US account to his father\u2019s account on the same exchange on January 24, 2022. Soon after, Bankman-Fried\u2019s father sent $6.75 million in total across six payments to his personal accounts at TD Ameritrade and Morgan Stanley. According to FTX, this \u201cgift\u201d is being used to pay for Bankman-Fried\u2019s legal representation.<\/p>\n

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The complaint also claims that the defendants were aware of the exchange\u2019s insolvency at the time when many of the allegedly fraudulent transactions took place. Negative balances were initially forbidden by FTX, but Sam Bankman-Fried<\/strong><\/a> is accused of ordering staff to tweak the exchange\u2019s coding so that Alameda could continue to have a negative balance.<\/p>\n

This code change allowed FTX to continue operating regularly even though it had significant shortfalls. According to reports, Ellison calculated that the FTX exchange will have a liquidity shortfall of more than $10 billion by March 2022.<\/p>\n<\/p><\/div>\n

Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) Sam Bankman-Fried, a former CEO of cryptocurrency exchange FTX, and other former senior personnel are the targets of legal action by the exchange in an effort to recover more than $1 billion in monies that were allegedly misused. The defendants are accused of violating their fiduciary […]<\/p>\n","protected":false},"author":34,"featured_media":22436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22435"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=22435"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/22436"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=22435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=22435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=22435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}