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FTX Trading Ltd., the cryptocurrency exchange that declared bankruptcy, has <a href="https://www.bloomberg.com/news/articles/2023-07-20/ftx-sues-bankman-fried-associates-over-1-billion-in-bad-deals" rel="noopener noreferrer nofollow">initiated</a> a lawsuit against its founder, Sam Bankman-Fried, and several high-ranking executives. The company seeks to recover millions of dollars and reverse transactions amounting to over $1 billion, which it deems dubious.The lawsuit alleged that Bankman-Fried, Gary Wang, the co-founder of FTX, Nishad Singh, the former director of engineering, and Caroline Ellison, the former co-CEO of Alameda Research LLC, a key FTX unit, were involved in fraudulent transfers. These transfers allegedly benefited them personally but did nothing to aid FTX. One such instance involves Bankman-Fried and Wang allegedly taking $546 million from Alameda to acquire shares in Robinhood Markets Inc., using sham loans that required no collateral and offered below-market interest rates.Adding to the complexity of the case, Bankman-Fried has been <a href="https://twitter.com/crypto/status/1682263165806030849?s&#61;20" rel="noopener noreferrer nofollow">accused</a> by US prosecutors of leaking writings by his ex-girlfriend, Caroline Ellison, to the press. This move is seen as an attempt to discredit her as a potential witness in his criminal fraud trial. Ellison, who <a href="https://www.nytimes.com/2022/12/21/technology/ftx-fraud-guilty-pleas.html#:~:text&#61;Ellison%20pleaded%20guilty%20to%20seven,wire%2C%20securities%20and%20commodities%20fraud." rel="noopener noreferrer nofollow">pleaded guilty to fraud charges</a> in the previous year related to the collapse of the cryptocurrency exchange, has agreed to cooperate with prosecutors in their case against Bankman-Fried.Further <a href="https://restructuring.ra.kroll.com/FTX/Home-DocketInfo" rel="noopener noreferrer nofollow">allegations suggest</a> that FTX executives and Ellison privately estimated that FTX.com owed customers over $8 billion in fiat currency that it was unable to repay. This revelation has added another layer to the ongoing legal proceedings.-Read full article at <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">C</a><a href="https://cryptotale.org/ftx-targets-founder-in-lawsuit-amid-fraud-trial-and-bankruptcy-woes/" rel="noopener noreferrer nofollow">ryptoTale.</a>

FTX Targets Founder in Lawsuit Amid Fraud Trial and Bankruptcy Woes

CryptoTale

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