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FTX filed a fresh lawsuit against former CEO Sam Bankman-Fried (SBF) and his close associates. It is looking to recover over $1 billion in misappropriated funds. 
The <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1=MTY1NzA5Mg==&amp;id2=-1" target="_blank" rel="noopener noreferrer nofollow">lawsuit</a> lists: 
<ul> 
 <li>Former co-founder SBF</li> 
 <li>Chief technology officer Zixiao “Gary” Wang</li> 
 <li>Former Alameda head Caroline Ellison</li> 
 <li>FTX’s former Director of Engineering Nishad Singh</li> 
</ul> 
The lawsuit claims that they failed in their fiduciary duties while at the helm, causing the eventual collapse of the cryptocurrency exchange.&nbsp; 
<a href="https://crypto.news/tag/ftx/" data-type="URL" data-id="https://crypto.news/tag/ftx/" rel="noopener noreferrer nofollow">FTX</a> alleges that Bankman-Fried and his associates failed to maintain robust financial records. They allegedly carried out various transfers and expenses unchecked and also obfuscated their illegal activities. 
FTX said these transfers were made when the exchange and its subsidiaries were insolvent, claiming they were aware of the failing financial situation.&nbsp; 
 You might also like: <a href="https://crypto.news/u-s-authorities-to-seize-460m-robinhood-shares-tied-to-ftx/" rel="noopener noreferrer nofollow"> U.S. authorities to seize $460m Robinhood shares tied to FTX </a> 
Part of the numerous transfers and transactions listed in the lawsuit include previously mentioned <a href="https://crypto.news/ftx-co-founder-sbf-hit-with-new-charges/" rel="noopener noreferrer nofollow">political donations</a> worth $100 million. Also, the defendants used more than $500 million to acquire Robinhood shares, <a href="https://crypto.news/us-doj-ftx-probe-seizes-robinhood-shares-worth-nearly-500m/" rel="noopener noreferrer nofollow">confiscated</a> by government officials.&nbsp; 
One of the people mentioned in the lawsuit, former Alameda Research CEO Caroline Ellison, allegedly paid herself $22.5 million in bonuses, with $10 million invested in an artificial intelligence company. Another bonus was around $6.2 million.&nbsp; 
 You might also like: <a href="https://crypto.news/caroline-ellison-admits-to-stealing-billions-of-dollars-from-ftx-customers/" rel="noopener noreferrer nofollow"> Caroline Ellison admits to stealing billions of dollars from FTX customers </a> 
Wang and Singh also benefited from the illegal transfers at FTX. The complaint claims that all persons listed as defendants used co-mingled user funds worth over $243 million to purchase luxury properties for themselves, their families, and friends. FTX alleged these actions further plunged the crypto exchange debt worth billions of dollars. 
The lawsuit also noted the absence of information security or cybersecurity personnel to protect the company, associated entities, and customer funds against fraud and hackers.&nbsp; 
<blockquote class="wp-block-quote"> 
 “Defendants used their close control over the FTX Group’s businesses and systems to perpetrate massive fraud — squandering the FTX Group’s assets on, among other things, luxury homes, political and “charitable” contributions, and various investments that would inure to the benefit of defendants rather than the corporate entities that had paid for them.” <cite>Excerpt from FTX lawsuit</cite> 
</blockquote> 
<h2 class="wp-block-heading" id="sbf-s-father-allegedly-involved">SBF’s father allegedly involved</h2> 
Further allegations stated that Bankman-Fried transferred $10 million from his account on FTX to his father, Joseph Bankman, a law professor at Stanford Law School. It was labeled as a gift. The lawsuit claims that SBF’s father uses part of the “gift money” to fund his son’s criminal defense.&nbsp; 
While Wang, Ellison, and Singh have <a href="https://crypto.news/caroline-ellison-admits-to-stealing-billions-of-dollars-from-ftx-customers/" rel="noopener noreferrer nofollow">pleaded guilty</a> to charges leveled against them, Bankman-Fried has pleaded not guilty to criminal charges.&nbsp; 
The recent lawsuit is part of an ongoing effort by CEO John J. Ray III to recover misappropriated funds. FTX, under John Ray’s leadership, previously <a href="https://crypto.news/ftx-recovers-7b-making-strides-in-creditor-repayment/" rel="noopener noreferrer nofollow">recovered $7 billion</a> owed to creditors and is recently looking to <a href="https://crypto.news/ftx-to-clawback-71-5-million-from-bankman-frieds-ngo/" rel="noopener noreferrer nofollow">recoup more than $70 million</a> invested in various life science companies by the Bahamas-based Latano science fund and FTX Foundation.&nbsp; 
 Read more: <a href="https://crypto.news/former-ftx-ceo-wants-to-exempt-friends-from-security-checks/" rel="noopener noreferrer nofollow"> Former FTX CEO wants to exempt friends from security checks </a>

FTX sues Bankman-Fried and execs to recover $1b

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