FTX Sues Ex-Execs Including SBF to Recover Over $1B Misappropriated Funds

FTX sued SBF and several other former executives in Delaware bankruptcy court on Thursday, accusing them misappropriated more than $1 billion before FTX went bankrupt, seeking to recover the funds.

Other defendants include former Alameda Research CEO Caroline Ellison, former FTX technology chief Gary Wang, and former FTX engineering director Nishad Singh.

According to FTX, the defendants conducted various fraudulent transfers between February 2020 and November 2022 that benefited them personally, but did nothing for FTX. The transfers include taking $546 million from Alameda Research to acquire shares of Robinhood Markets, providing Alameda Research with allegedly sham loans, using fake loans to acquire stock from FTX worth $250 million, and more. In addition, SBF once gave his father a $10 million gift, and the money is now paying for SBF's criminal defense bills.

"The transfers were made when FTX-related entities were insolvent, and defendants knew it," FTX added.

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