{"id":411744,"date":"2023-06-25T18:59:47","date_gmt":"2023-06-25T18:59:47","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=411744"},"modified":"2023-06-25T18:59:47","modified_gmt":"2023-06-25T18:59:47","slug":"ftxs-battle-for-redemption-pursuing-700-million-allegedly-misused-by-sam-bankman-fried-in-a-bid-for-influence","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ftxs-battle-for-redemption-pursuing-700-million-allegedly-misused-by-sam-bankman-fried-in-a-bid-for-influence","title":{"rendered":"FTX’s Battle for Redemption – Pursuing $700 Million Allegedly Misused by Sam Bankman-Fried in a Bid for Influence"},"content":{"rendered":"
FTX’s new management is embarking on a legal battle to retrieve a staggering $700 million, which they claim was misused by disgraced crypto mogul Sam Bankman-Fried to buy influence.<\/p>\n
The lawsuit, filed on Thursday, sheds light on Bankman-Fried’s association with Michael Kives, a former Hollywood agent turned investor and ex-aide to Hillary Clinton, who is known for his extensive network.<\/p>\n
As per the lawsuit, an encounter between Sam Bankman-Fried and Michael Kives took place during a prestigious dinner in February 2022. The event boasted the presence of distinguished guests, including several billionaires and a former Presidential candidate.<\/p>\n
Bankman-Fried, evidently captivated by Kives’ extensive network of influential individuals, made the decision to transfer a substantial amount of $700 million to Kives’ K5 entities over the course of the year. The move was driven by Bankman-Fried’s perception of Kives as an invaluable asset for fostering valuable relationships.<\/p>\n
https:\/\/twitter.com\/AFTXcreditor\/status\/1671933063385825313?s=20<\/p>\n
FTX’s new management is now pursuing legal action against Kives and his investment firm, K5, in an attempt to recover the allegedly misappropriated funds. The lawsuit alleges that the payments were made through shell corporations, adding a layer of complexity to the situation.<\/p>\n
It is worth noting that FTX itself faced significant challenges last year when the crypto exchange experienced a highly-publicized collapse<\/a>, leading to bankruptcy proceedings.<\/p>\n Prosecutors have accused the exchange of criminal mismanagement, resulting in Bankman-Fried’s arrest in the Bahamas in December. He has since been charged with multiple financial crimes, including wire fraud and violations of campaign finance laws.<\/p>\n In their quest to reclaim the funds, FTX’s lawyers have filed a petition with the U.S. Bankruptcy Court for the District of Delaware. They seek to recover the $700 million from K5 Global Technology, its subsidiaries, and the founders of the firm, Michael Kives and Bryan Baum.<\/p>\n The attorneys argue that the defendants received the funds without undergoing proper due diligence, and FTX did not receive “equivalent value” in return.<\/p>\n However, doubts have been raised about the potential outcome of the legal proceedings. Observers note that only $100 million of the funds were transferred within the 90-day preference window, which could limit FTX’s ability to reclaim more than that amount.<\/p>\n Furthermore, given Kives’ alleged connections, some speculate that he may find ways to avoid repaying any of the funds.<\/p>\n In response to the lawsuit, a spokesperson for K5 dismissed the claims, stating that they believed Bankman-Fried to be legitimate and entered into a fair and mutually beneficial business relationship.<\/p>\n It remains to be seen how the legal battle will unfold and whether FTX<\/a> will be successful in recovering the allegedly misappropriated funds.<\/p>\n <\/p>\nMedia Giants Renew Push for Transparency in FTX Bankruptcy Case<\/h2>\n