{"id":10878,"date":"2023-05-19T08:47:29","date_gmt":"2023-05-19T12:47:29","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/ftx-sues-sam-bankman-fried-and-others-seeking-to-claw-back-240-million-from-embed-deal\/"},"modified":"2023-05-19T08:47:30","modified_gmt":"2023-05-19T12:47:30","slug":"ftx-sues-sam-bankman-fried-and-others-seeking-to-claw-back-240-million-from-embed-deal","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=10878","title":{"rendered":"FTX sues Sam Bankman-Fried and others, seeking to claw back $240 million from Embed deal"},"content":{"rendered":"
\n

Failed crypto exchange FTX is suing co-founder and former Chief Executive Sam Bankman-Fried and others, seeking to claw back about $240 million related to the company\u2019s acquisition of stock-trading platform Embed.<\/p>\n

In a filing Wednesday in U.S. Bankruptcy Court in Delaware, FTX claimed Bankman-Fried and others \u2014 including FTX co-founders Zixiao Wang and Nishad Singh \u2014 conducted little to no due diligence and rushed the $240 million acquisition ahead of FTX\u2019s collapse last November.<\/p>\n

\n

The lawsuit claimed money for the Embed acquisition came from Alameda Research, FTX\u2019s affiliated hedge fund, which had illegally diverted assets belonging to FTX \u2014 constituting fraud.<\/p>\n

\u201cThe FTX insiders purportedly pursued the Embed acquisition because they
believed it would help expand FTX.US\u2019s operations into conventional securities markets, thereby enriching themselves,\u201d the suit claimed, and FTX ended up paying a \u201cwildly inflated\u201d price for Embed.<\/p>\n

In a related filing Wednesday, FTX also sued Embed founder Michael Giles and other former Embed workers and shareholders.<\/p>\n

The deal for Embed closed just six weeks before FTX filed for bankruptcy on Nov. 11. <\/p>\n

FTX, under new management, recently tried to sell Embed as part of a bankruptcy-related asset sale, but it received a high bid of only $1 million \u2014 from Giles himself, the suit said, claiming other bidders had figured out that \u201cEmbed\u2019s vaunted software platform was essentially worthless.\u201d<\/p>\n

FTX\u2019s Wang and Singh have already pleaded guilty to crimes that facilitated the acquisition of Embed, the suit noted. Bankman-Fried has been charged by federal prosecutors with multiple counts of conspiracy and fraud.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Failed crypto exchange FTX is suing co-founder and former Chief Executive Sam Bankman-Fried and others, seeking to claw back about $240 million related to the company\u2019s acquisition of stock-trading platform Embed. In a filing Wednesday in U.S. Bankruptcy Court in Delaware, FTX claimed Bankman-Fried and others \u2014 including FTX co-founders Zixiao Wang and Nishad Singh […]<\/p>\n","protected":false},"author":1,"featured_media":10879,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-10878","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nFTX sues Sam Bankman-Fried and others, seeking to claw back $240 million from Embed deal | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Failed crypto exchange FTX is suing co-founder and former Chief Executive Sam Bankman-Fried and others, seeking to claw back about $240 million related to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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