FTX accuses Sam Bankman-Fried of funding criminal defense with $10 million in misappropriated funds

Sam Bankman-Fried, co-founder of failed crypto speech FTX, was sued successful Delaware bankruptcy tribunal connected Thursday by his ex-company's lawyers, who impeach him and members of his enactment squad of stealing hundreds of millions of dollars.

The lawyers are seeking to retrieve funds from Bankman-Fried and erstwhile executives of FTX and sister hedge money Alameda Research. One mode the attorneys for the bankrupt speech accidental Bankman-Fried pilfered wealth was done a $10 cardinal acquisition to his father, distinguished ineligible student Joe Bankman.

Much of that $10 cardinal acquisition from was routed from FTX to Bankman-Fried's Morgan Stanley and TD Ameritrade accounts astir January 2022, the suit alleges. The ailment claims those proceeds are present paying for Bankman-Fried's transgression defence bills.

A typical for Bankman-Fried declined to comment.

Bankman-Fried was indicted connected fraud and bribery charges arsenic good arsenic campaign finance violations aft FTX filed for bankruptcy precocious past year. His exchange, erstwhile valued astatine $32 billion, collapsed astir overnight aft liquidity dried up and customers demanded withdrawals that the institution couldn't meet.

Bankman-Fried pleaded not guilty. His proceedings is expected to statesman aboriginal this year.

Lawyers for FTX person been successful hunt of the company's remaining assets successful an effort to retrieve arsenic overmuch wealth arsenic imaginable for creditors.

FTX and Alameda executives Caroline Ellison, Gary Wang, and Nishad Singh are co-defendants successful the case, alongside Bankman-Fried.

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