FTX Trading Ltd. sued Sam Bankman-Fried and other former leaders of the bankrupt crypto empire for allegedly using misappropriated funds to buy an “essentially worthless” stock-clearing firm in 2022 for $220 million.
Bankman-Fried and other former company insiders orchestrated “a series of self-dealing transactions” that enabled FTX, under his leadership, to acquire Embed Financial Technologies Inc. at a “wildly inflated” price, the bankrupt crypto exchange said in complaints filed Wednesday in the US Bankruptcy Court for the District of Delaware.
The sale amounts to a fraudulent transfer that entitles FTX to claw back the money, FTX said.
Bankman-Fried and other ...
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