FTX Trading eyes recovery of $71 million from philanthropic units

By Sarah Lizee

Olympia, Wash., July 20 – FTX Trading Ltd. filed a complaint that seeks to recover $71 million from former chief executive officer Sam Bankman-Fried, the FTX Foundation and Latona Biosciences Group, among others, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The FTX Foundation, which was the philanthropic arm of the FTX group, and Latona, a “sham non-profit company” organized in the Bahamas, together took over $71 million of commingled funds from FTX and Alameda accounts to make investments in and donations to life sciences companies for Bankman-Fried’s personal aggrandizement, the complaint alleges.

FTX said no benefits received for the investments went to either Alameda or FTX, even though they both transferred the funds to the life sciences companies.

FTX has headquarters in the Bahamas. The company filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.