- FTX lawyers seek to recover $71 million from the company’s Philanthropic and Life Science arm.
- The court filings claim that the donations were made with ulterior motives rather than to help those in financial need.
- This latest attempt adds to a string of others in which the company tries to recover misused funds.
Bankrupt crypto exchange FTX and its sister company Alameda Research want to recover over $71 million from its philanthropic arm and other life science entities, court documents reveal. This latest attempt follows similar actions by FTX as the now-defunct company tries to recover misappropriated funds. So far, as of June 2023, the company has recovered over $7 billion.
Per the court documents, the donations made to the company’s philanthropic arm were for “the personal aggrandizement” of Sam Bankman-Fried. According to the firm’s lawyers, the donations were made under the guise of altruism, an ideology rooted in the redistribution of wealth to the most vulnerable. Instead, the filings claim the donations were made to improve the former CEO’s goodwill and political influence.
Lumen Bioscience Inc. and Platform Life Sciences Inc. are some of the companies that received these donations. On its part, the New York Museum of Arts has agreed to return $550000 it received in donations from the company.
The CEO is also involved in many scandalous donations made to politicians and celebrities using customers’ funds. Since the crypto exchange’s collapse, the company has tried to recover funds misused by the company.
Earlier in the month, the company sued FTX Europe, its European arm, to recover $323 million from the company. According to the filing, the European expansion was one of the ways through which Sam Bankman-Fried and associates tried to enrich themselves.
There have also been many cases against celebrities, politicians, and affluent individuals. Close associates such as Gabe Bankman-Fried, Sam’s brother, Duncan Rheingans-Yoo, and Xiaoyun “Lilly” Zhang have also been implicated in the proceedings.
Should the recoveries be successful, FTX’s new administration claims that the company could be revived. With the trial scheduled for October, Sam Bankman-Fried maintains his innocence after pleading not guilty to the charges.
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