FTX is stepping up its recovery efforts with 20 new lawsuits targeting political donations and alleged fraud in an effort to recover millions of dollars in lost assets. Among those it has filed are Waves founder Aleksandr Ivanov and Binance founder Changpeng Zhao. Here are the details…
FTX files lawsuits against multiple names
FTX has stepped up its legal efforts by filing more than 20 new lawsuits aimed at recovering assets linked to political donations, fraudulent investments, and market manipulation. These latest lawsuits target a variety of individuals and companies, including well-known figures such as former White House Communications Director Anthony Scaramucci and the video game team Storybook Brawl. Since November 2022, FTX’s bankruptcy administrators have filed 51 counterclaims, 30 of which were filed in the past few weeks, indicating that they are significantly intensifying their efforts to recover the funds.
One of the most prominent issues is the recovery of political donations allegedly made using customer funds. FTX targets donations to left-leaning groups, claiming that these donations were funded through fraud. Thomas Braziel, founder of 117 Partners, said that under US bankruptcy law, donations that are not fraudulent or of equivalent value can be revoked. The timing, purpose and financial situation of the donor are important factors in determining whether a donation is revocable.
Anthony Scaramucci, Binance founder sued for $100 million
One of the most prominent lawsuits involves Anthony Scaramucci. FTX is suing Scaramucci for more than $100 million. The exchange is also reportedly suing Nawaaz Mohammad Meerun, known as “Humpy the Whale,” for market manipulation. Meerun allegedly caused more than $1 billion in losses through this manipulation. FTX has accused Meerun of repeatedly violating exchange rules, claiming that he caused significant financial losses for FTX and its trading arm Alameda Research. Meerun’s activities allegedly led Alameda to finance risky positions, which resulted in hundreds of millions of dollars in additional losses.
As part of FTX’s asset recovery efforts, lawsuits have also been filed against centralized exchanges Crypto.com and KuCoin. The aim is to recover funds from the failed platform. On the other hand, it filed a $90 million bankruptcy lawsuit against Aleksandr Ivanov, founder of the Waves altcoin project. On the other hand, FTX’s focus is on Binance’s former CEO and founder Changpeng Zhao. The company filed a lawsuit against Zhao to recover $1.8 billion. Because Binance had made a deal with FTX co-founder Sam Bankman-Fried in 2021. This deal was a share buyback agreement. The money in question is the amount of shares bought back.
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