HomeNewsFTX Crypto Exchange on the Hunt for $71M Misallocated by Philanthropic and...

FTX Crypto Exchange on the Hunt for $71M Misallocated by Philanthropic and Scientific Entities

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  • FTX and Alameda Research are seeking to reclaim more than $71 million from their philanthropic and life science entities, a move considered the latest in their bid to recover funds for their clientele.
  • The companies claim that these funds were misused for the personal aggrandizement of FTX’s founder, Sam Bankman-Fried.

Cryptocurrency exchange FTX, now defunct, and its sibling organization Alameda Research, are endeavoring to reclaim over $71 million from FTX’s philanthropic wing and multiple life science entities. This move, detailed in court documents filed on Wednesday, represents the latest effort by the bankrupt firm to retrieve funds on behalf of its customer base.

This pursuit for asset recovery started last month when Alameda’s legal team sought to recover an astonishing $700 million. These funds were allegedly used by FTX founder Sam Bankman-Fried to foster connections with notable personalities and political figures. In addition to this, FTX also recently requested the court to reclaim $323 million from the leadership team of the exchange’s European branch.

Behind the Alleged Misuse of Funds

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According to the lawyers, the FTX Foundation and Latona, another involved entity, siphoned approximately $71.5 million from FTX and Alameda Research. These funds were purportedly utilized to make investments and donations to life sciences companies for the personal glorification of Bankman-Fried.

Companies such as Lumen Bioscience Inc. and Platform Life Sciences Inc. received these transfers under the cloak of “effective altruism.” This philosophy promotes the redistribution of wealth from the well-off to those in financial need. However, the attorneys argue that the firms’ philanthropic aims weren’t truly charitable.

Bankman-Fried was not solely motivated by altruistic purposes such as pandemic prevention and preparedness, as presented, the lawyers contended in their filing. Instead, he allegedly engaged in these transactions to cultivate goodwill, accumulate political influence, and self-promotion.

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In another twist in this saga, New York’s Metropolitan Museum of Art has agreed to return $550,000 in donations it had previously received from FTX.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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