Crypto News – According to a court document filed late on Thursday, FTX is suing former Salameda workers to recover around $157.3 million. Salameda is a Hong Kong-incorporated company connected to FTX that the company claims was under the control of Sam Bankman-Fried, the former CEO of the company.
FTX-Salameda Case: FTX Demands $157 Million from Former Employees of Salameda
According to the petition, Michael Burgess, Matthew Burgess, their mother Lesley Burgess, Kevin Nguyen, Darren Wong, and two organizations owned or controlled a number of businesses with accounts registered at FTX.com and FTX US, and they fraudulently took funds in the days preceding FTX’s bankruptcy, the filing claims. Additionally, the petition claims that Matthew Burgess used other FTX workers to “push out” some pending withdrawal requests from one of Michael Burgess’ FTX US exchange accounts while falsely claiming ownership of the account, according to messages on the messaging service Slack.
The defendants benefited from withdrawals that constitute preferential transfers and “are avoidable under the Bankruptcy Code,” according to the petition, during the Preference Period, which is the 90 days prior to the bankruptcy filing on November 11, 2022. According to the petition, the defendants rushed to remove funds and took use of their relationships with FTX employees to guarantee they would be given preference over other clients.
This is Not FTX’s First Time
The FTX bankruptcy estate has attempted to recoup payments from linked parties previously. Bankman-Fried and his executives, his parents, FTX’s charity and life science divisions, as well as Bankman-Fried himself, have already been targeted. In addition, it is attempting to recover payments made to the similarly bankrupt Genesis Global Capital, which is controlled by CoinDesk’s parent company, Digital Currency Group.
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