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Business

FTX Lawyers Accuse Sam Bankman-Fried of Using $10 Million in Embezzled Funds to Fund Criminal Defense. (United Latest News)

(United Latest News)- Sam Bankman-Fried, the co-founder of the now-defunct cryptocurrency exchange FTX, faced legal action in Delaware bankruptcy court last Thursday. His ex-company’s legal representatives filed a lawsuit against him and other members of the leadership team, accusing them of embezzling hundreds of millions of dollars.

The lawyers are aiming to reclaim funds from Bankman-Fried and former executives of both FTX and the sister hedge fund, Alameda Research. One alleged method of misappropriation was a $10 million gift to Bankman-Fried’s father, Joe Bankman, a distinguished legal scholar. According to the lawsuit, a significant portion of this gift was transferred from FTX to Bankman-Fried’s accounts at Morgan Stanley and TD Ameritrade around January 2022. It is asserted that these funds are currently being used to cover Bankman-Fried’s expenses related to his criminal defense.

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When approached for comment, a representative for Bankman-Fried chose not to provide a statement.

Following FTX’s declaration of bankruptcy late last year, Bankman-Fried was indicted on charges of fraud, bribery, and campaign finance violations. The collapse of his once $32 billion-valued exchange occurred abruptly as liquidity vanished, and customers sought withdrawals that the company could not fulfill.

Bankman-Fried has pleaded not guilty, and his trial is anticipated to commence later this year. Meanwhile, lawyers representing FTX have been diligently searching for any remaining company assets to maximize recovery for creditors.

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