The former cryptocurrency exchange FTX has taken legal action against a former aide of Hilary Clinton and the investment firm K5 Global to recover $700 million in funds. FTX claims in a lawsuit filed in Wilmington, Delaware, that its founder Sam Bankman-Fried transferred money to K5 entities in 2022. The lawsuit also names Mount Olympus Capital, SGN Albany Capital, and affiliated entities as defendants, along with K5 Global co-owners Michael Kives and Bryan Baum.
According to the suit, Bankman-Fried attended a social gathering hosted by Kives in 2022, which included high-profile attendees such as former presidential candidates, top actors, musicians, reality TV stars, and billionaires. FTX claims that shortly after the event, it transferred millions from Alameda Research, an FTX-affiliated crypto trading company, to Kives, Baum, and K5 Global. Also, the funds were transferred in the name of shell companies SGN Albany and Mount Olympus Capital.
One of the transactions highlighted in the lawsuit includes $214 million used from FTX to purchase a minority stake in Kendall Jenner’s 818 Tequila brand, valued at just $2.94 million, according to filings with the US Securities and Exchange Commission. Notably, FTX expects to recover funds from SGN Albany Capital and the amounts transferred from Kives, Baum, and SGN Albany Capital to Mount Olympus Capital. The lawsuit describes these transfers as receiving inadequate value and potentially avoidable under the Bankruptcy Code or other laws.
FTX also accuses Kives and Baum of working with Bankman-Fried behind the scenes to find someone to help bail out FTX Group after the collapse of the cryptocurrency exchange. While making efforts to recoup the available finances, FTX is struggling with rising legal and advisory costs, with charges already amounting to $121.8 million in fees between February and April of this year.
FTX’s bankruptcy advisors also mentioned the potential sale of Anthropic’s stake, which the crypto exchange reportedly owned around $500 million worth of when it filed for bankruptcy last year. As the demand for AI technologies continues to grow, Anthropic’s significant growth could lead to the sale expected to fetch a nine-figure sum, which can then be distributed to former FTX customers. The boutique bank Perella Weinberg is overseeing FTX’s bankruptcy proceedings and discussing the possible sale with interested parties.
Ultimately, the recovery of the $700 million funds and the potential sale of Anthropic’s stake could prove significant for the blockchain future, technology, and markets. On one hand, the usage of shell companies and questionable investments highlight concerns about the safety and transparency of the crypto industry. On the other hand, the growth of AI companies like Anthropic can drive innovation and development in technology, paving a brighter future for all stakeholders involved.
Source: Cryptonews
