FTX’s Alameda Sues K5 Global to Claw Back $700 Million in Funds

June 23, 2023, 5:45 PM UTC

Bankrupt FTX’s trading arm Alameda Research Ltd. has sued venture capital firm K5 Global and its managers, including a former aide to President Bill Clinton, seeking to recoup $700 million in allegedly fraudulent transfers.

The transactions are part of a larger environment of “lavish spending” in which FTX Trading Ltd. insiders took advantage of the cryptocurrency company’s “lack of controls and recordkeeping to perpetrate a massive fraud,” according to the complaint filed Thursday.

The suit, filed in the US Bankruptcy Court for the District of Delaware, takes aim at investments FTX former CEO Sam Bankman-Fried and Alameda Research made last ...

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