In a bid to recover $157.3 million, bankrupt cryptocurrency exchange FTX has filed a lawsuit against former employees of Salameda, its Hong Kong-based associate firm. The legal action, announced on Friday, is seen as part of FTX's attempts to recoup the funds it alleges were controlled by its former CEO, Samuel Bankman-Fried.
The lawsuit targets Michael Burgess, Matthew Burgess, Lesley Burgess, Kevin Nguyen, Darren Wong, and two companies with accounts at FTX.com and FTX US. These defendants are accused of fraudulently withdrawing assets during the 90-day preference period leading up to the bankruptcy filing. FTX is seeking compensation equal to the total value of assets as of August 31 from these individuals and entities.
The ongoing legal proceedings coincide with challenges faced by the exchange's creditors. With a looming deadline of September 29, creditors are yet to agree or dispute their scheduled claims, which total $7.9 billion. Technical difficulties have been reported by many users while submitting their claims and passing Know Your Customer (KYC) procedures on various social media platforms.
To further aid the recovery of funds for creditor repayment, FTX has been reaching out to sports influencers, athletes, Formula 1 teams, and universities that have received donations from the exchange and its founder.
The recovery of these funds is considered vital for replenishing the exchange's assets for repaying its creditors. This comes almost a year after FTX filed for bankruptcy.
Meanwhile, former CEO Sam Bankman-Fried is scheduled to stand trial on October 3. The outcome of these legal proceedings will likely have significant implications for the future of FTX and its ability to settle its substantial debt.
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