2 years ago
Bankrupt crypto speech FTX filed a ailment with the tribunal asking to retrieve $700 cardinal from, Michael Kives, a high–profile networker approached by Sam Bankman-Fried, and a institution helium co-owned, K5 Global, according to a June 22 tribunal filing.
FTX alleges that its laminitis Sam Bankman-Fried (SBF), pursued the woody to leverage Kives’ high-value web to bolster his governmental and societal influence. Bankman-Fried resigned arsenic FTX CEO successful November 2022 and was replaced by John J. Ray III.
SBF, Kives, and Baum’s relationship
FTX described Bankman-Fried arsenic a “profligate patron” of Kives and his co-founder Bryan Baum.
Kives and Baum are co-founders of K5 Global, an concern and incubation firm. Kives wields respective almighty connections has represented oregon worked with aggregate nationalist figures and powerfulness brokers, including Arnold Schwarzenegger, Katy Perry, Mikhail Gorbachev, Warren Buffett, and some Bill and Hillary Clinton. K5 Global holds stakes successful SpaceX, Airbnb, 818 Tequila, and more.
The suit alleged that K5 and FTX entities had a “highly unorthodox, profoundly intertwined relationship” with Kives and Baum, who “regularly advis[ed]” Bankman-Fried connected concern strategies and were included successful interior FTX Slack Channels.
Furthermore, Bankman-Fried described Kives arsenic “probably, the astir connected idiosyncratic I’ve ever met,” and “a one-stop shop” for governmental relationships and personage partnerships that could beryllium utilized, according to the complaints.
Additionally, the filing alleges that Bankman-Fried had attended societal events hosted by Kives successful 2022 with “a erstwhile Presidential candidate, apical actors and musicians, world TV stars and aggregate billionaires” successful attendance.
While FTX executives wondered if Baum was acting successful FTX’s champion interest, Bankman-Fried allegedly stated that the narration was “complicated and liminal and unclear.”
When FTX was connected the brink of collapse, the suit alleged Kives and Baum worked down the scene, reaching retired to assorted billionaires, backstage equity firms, and financiers connected Bankman-Fried’s behalf.
“When Bankman-Fried’s fraudulent strategy began to collapse, Kives and Baum worked down the scenes with Bankman-Fried connected a strategy to find idiosyncratic to bail retired the FTX Group (and to support their aureate goose).”
$700 million
According to the lawsuit, Bankman-Fried directed Alameda Research, an FTX-related cryptocurrency trading firm, to transportation a full of $700 cardinal to K5 Global-related entities without making immoderate owed diligence astir the expected “investments.”
“Bankman-Fried directed Plaintiffs to marque a bid of ligament transfers totaling $700 cardinal successful furtherance of the K5 Transaction and Mount Olympus Transaction.”
These transactions were allegedly disguised arsenic originating from ammunition companies named SGN Albany and Mount Olympus Capital.
“Plaintiff Alameda Ventures LLC had nary ownership involvement successful either of these entities, and Plaintiff Alameda Research Ltd. owned lone astir 8% of SGN Albany LLC.”
FTX alleged that Bankman-Fried pursued the transactions to burnish his governmental and societal power and defraud FTX’s customers. The woody handsomely rewarded Kives and Baum with $125 million, respectively.
“Bankman-Fried pursued the K5 Transaction and Mount Olympus Transaction to burnish his ain governmental and societal influence. In pursuing these transactions, Bankman-Fried cavalierly agreed to marque billion-dollar investments utilizing different people’s money, with nary owed diligence, and accepted presumption that personally enriched Defendants Kives and Baum by excessively overpaying each of them $125 cardinal arsenic portion of the K5 Transaction.”
Furthermore, an Bankman-Fried-controlled steadfast made a $214 cardinal concern to acquisition a number involvement successful a celebrity-backed tequila marque with assets valued astatine $2.94 million, according to its filings with the U.S. Securities and Exchange Commission.
The station FTX files ailment to retrieve $700M from “super-networker” Bankman-Fried courted for connections appeared archetypal connected CryptoSlate.
English (US) 