FTX Donation Clawback Lawsuit Must Be Tossed, Nonprofit Says

A nonprofit with connections to the “effective altruism” movement took steps to dismiss FTX’s lawsuit aiming to claw back $5 million in donations from the bankrupt crypto firm and related entities.

The lawsuit, filed by FTX in the US Bankruptcy Court for the District of Delaware in May, seeks a court judgment forcing the Center for Applied Rationality to give back the money as part of its effort to boost payments for creditors. But the suit should be thrown out because it seeks to recover funds that weren’t part of FTX’s bankrupt estate, the organization said.

“Simply, Plaintiffs cannot assert ...