Indicted FTX founder Sam Bankman-Fried exits United States Court in New York City, June 15, 2023.<\/p>\n
Mike Segar | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Sam Bankman-Fried, co-founder of failed crypto exchange FTX, was sued in Delaware bankruptcy court on Thursday by his ex-company’s lawyers, who accuse him and members of his leadership team of stealing hundreds of millions of dollars<\/a>.<\/p>\n The lawyers are seeking to recover funds from Bankman-Fried and former executives of FTX and sister hedge fund Alameda Research. One way the attorneys for the bankrupt exchange say Bankman-Fried pilfered money was through a $10 million gift to his father, distinguished legal scholar Joe Bankman.<\/p>\n <\/img><\/p>\n <\/img><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Much of that $10 million gift from was routed from FTX to Bankman-Fried’s Morgan Stanley<\/a><\/span><\/span><\/span> and TD Ameritrade accounts around January 2022, the lawsuit alleges. The complaint claims those proceeds are now paying for Bankman-Fried’s criminal defense bills.<\/p>\n A representative for Bankman-Fried declined to comment. <\/p>\n Bankman-Fried was indicted on fraud and bribery charges as well as campaign finance<\/a> violations after FTX filed for bankruptcy late last year. His exchange, once valued at $32 billion, collapsed almost overnight after liquidity dried up and customers demanded withdrawals that the company couldn’t meet. <\/p>\n Bankman-Fried pleaded not guilty. His trial is expected to begin later this year. <\/p>\n Lawyers for FTX have been in search of the company’s remaining assets in an effort to recover as much money as possible for creditors. <\/p>\n FTX<\/a><\/span><\/span><\/span> and Alameda executives Caroline Ellison, Gary Wang<\/a>, and Nishad Singh<\/a> are co-defendants in the case, alongside Bankman-Fried. <\/p>\nrelated investing news<\/h2>\n