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<p class="is-style-lead">Bankrupt crypto exchange FTX has taken legal action by filing a lawsuit against a former aide to Hillary Clinton and the aide’s investment firm. The exchange seeks to reclaim $700 million in investments that it alleges were made using misappropriated FTX funds.</p> 
<p>According to <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MTUzMzc3MA==&amp;id2=-1" target="_blank" rel="noopener">court documents</a>, FTX’s founder, Sam Bankman-Fried, authorized the transfer of $700 million to entities affiliated with K5 Global, an investment firm led by former Clinton aide Michael Kives and co-founder Bryan Baum. FTX claims that Bankman-Fried allowed this transfer as part of a scheme to misuse company assets for personal gain.</p> 
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   <p lang="en" dir="ltr">FTX moves to claw back $800 million from K5 Global, Olympus Capital, SGN Albany et al.<br><br>Defendants are further accused of aiding and abetting SBF, dishonest assistance and unjust enrichment. <a href="https://t.co/IPcDEtuFxL" target="_blank">pic.twitter.com/IPcDEtuFxL</a></p>— FTX 2.0 Coalition (@AFTXcreditor) <a href="https://twitter.com/AFTXcreditor/status/1671933063385825313?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 22, 2023</a>
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<p>The lawsuit reveals that Bankman-Fried described Kives as an individual with extensive political and celebrity connections, referring to him as “the most connected person I’ve ever met.” </p> 
<p>FTX alleges that Bankman-Fried utilized K5 Global’s connections to enhance his political and social influence.</p> 
<p> You might also like: <a href="https://crypto.news/binance-us-usd-withdrawal-potential-discontinuation/"> Binance.US resolves USD withdrawal issues, warns of potential discontinuation </a> </p> 
<p>Despite concerns raised by FTX employees regarding K5’s intentions, Bankman-Fried allegedly continued to invest in K5 projects, ultimately benefiting Kives and Baum at the expense of the exchange and its customers.</p> 
<h2 class="wp-block-heading" id="alleged-questionable-investments-and-response">Alleged questionable investments and response</h2> 
<p>One specific investment highlighted in the lawsuit involves a Bankman-Fried-controlled shell company, which used $214 million from FTX to purchase a minority stake in Kendall Jenner’s 818 Tequila brand.</p> 
<p>K5 Global has vehemently denied the allegations, stating that they believed Bankman-Fried and FTX were legitimate partners engaged in a mutually beneficial business relationship. A spokesperson for K5 Global <a href="https://www.reuters.com/legal/ftx-sues-ex-clinton-aides-investment-firm-700-million-2023-06-22/" target="_blank" rel="noopener">emphasized </a>their belief in a fair and long-term partnership.</p> 
<p>Bankman-Fried, on the other hand, has <a href="https://crypto.news/disgraced-ftx-founder-sbf-pleads-not-guilty/">pleaded not guilty </a>to charges alleging that he defrauded FTX customers by using their funds to support his risky investments.</p> 
<p>Since filing for bankruptcy, FTX’s new leadership has managed to recover more than $7 billion in assets, which can be utilized to repay customers whose funds were frozen during the collapse of the cryptocurrency exchange.</p> 
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<p>In addition to the current lawsuit, FTX has also filed legal actions related to its pre-bankruptcy investment in the stock platform <a href="https://crypto.news/ftx-seeks-to-reclaim-over-240m-in-controversial-acquisition-of-embed/">Embed </a>and its payments to <a href="https://crypto.news/ftx-seeks-to-recover-nearly-4b-in-bankruptcy-case/">Genesis Global Capital</a>, the bankrupt lending arm of crypto firm Genesis.</p> 
<p>Furthermore, FTX recently <a href="https://crypto.news/met-museum-to-refund-550k-in-donations-from-ftx/">announced </a>a settlement with the Metropolitan Museum of Art, in which the museum agreed to return $550 million in donations it received from FTX companies in 2022.</p> 
<p> Read more: <a href="https://crypto.news/prime-trust-insolvency-fears-nevada-cease-desist-order/"> Prime Trust insolvency fears, Nevada regulator issues cease-and-desist order </a> </p>

FTX files $700m lawsuit against investment firm tied to Hillary Clinton aide

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