FTX Lawyers Pursue Salameda Ltd. Employees for Funds
FTX, the failed crypto exchange that collapsed almost a year ago, is still entangled in controversy. In an attempt to recover funds for investors, FTX lawyers are now targeting employees of Salameda Ltd. These employees, who allegedly worked under former FTX CEO Bankman-Fried’s control, are accused of prioritizing their own asset withdrawals before the exchange’s crash on November 11, 2022.
FTX Seeks the Return of $150 Million
According to court documents, Michael Burgess, Matthew Burgess, Kevin Nguyen, and Darren Wong, all former Salameda employees, fraudulently withdrew assets from their FTX accounts just hours before the bankruptcy. The filings suggest that these defendants were effectively FTX Group employees due to their senior-level positions at FTX Group companies.
Prior to its collapse, FTX faced scrutiny regarding its liquidity and solvency, leading many customers to request withdrawals. However, while other customers experienced delays in processing their requests and did not receive their funds before the bankruptcy filing, the defendants received preferential treatment due to their connections with FTX Group executives.
FTX’s Legal Efforts to Recover Funds
Since filing for bankruptcy, FTX has initiated multiple lawsuits in an effort to recover funds for investors and customers. In July, the exchange filed a similar case against executives of its European subsidiary seeking to recover $323 million.
The exchange’s lawyers recently targeted Sam Bankman-Fried’s parents, accusing them of misappropriating funds during the exchange’s operation. However, Bankman-Fried’s parents have denied these claims. Sam Bankman-Fried himself is scheduled to face trial on October 3 for eight charges brought against him.
Hot Take: FTX Continues to Pursue Legal Action to Recover Funds
Despite its collapse, FTX remains embroiled in legal battles as it seeks to recoup funds for its investors. The latest move involves pursuing employees of Salameda Ltd. who allegedly prioritized their own withdrawals before the exchange’s crash. FTX is demanding the return of $150 million that was fraudulently transferred to these employees. The exchange has been actively filing lawsuits and taking legal action to recover money since filing for bankruptcy. These ongoing efforts reflect FTX’s determination to hold individuals accountable and provide some compensation for its customers and investors.
By
By
By
By