FTX is suing over investments, charitable donations to life sciences companies

FTX’s efforts to recover money from customers are ongoing. Alameda Research and FTX filed a lawsuit on July 19 seeking the return of $71.6 million in allegedly mixed corporate and client funds related to investments and donations in life science companies.

The defendants in the lawsuit are six life science companies, the philanthropic organization FTX Foundation, the Latona Biosciences Group “Sham” nonprofit, former FTX CEO Sam Bankman-Fried, FTX Foundation head Nicholas Beckstedt, and Latona head Ross Ringens-U.

The lawsuit alleges that the FTX Foundation and Latona donated or invested money in six life science companies for the personal benefit of Bankman-Fried and Ringens-U, and without any benefit to Alameda Research or FTX. It relates to eight transfers from Alameda Research to companies that were made on Latona’s behalf between February 2022 and October 2022.

FTX attempts to recover after escaping $71.5 million transfer

Life Sciences, Lumen Bioscience, Greenlight Biosciences Holdings, PBC, Riboscience, Genetic Network, 4J Therapeutics, Latona Biosciences, FTX Foundation, SBF, Ross Ringens-U and Nicolas Beckstedt pic.twitter.com/T7lF3sZmzN

– Sunil (FTX 2.0 Champion) (@sunil_trades) 20 July 2023

Investments in life science companies would have been made without due diligence or independent evaluation. By costume:

“Each of these transfers was made with intent to hinder, delay or defraud present or future creditors, a fact known to the FTX Foundation, Latona and Bankman-Fried.”

“In fact, Bankman-Fried continued with these transactions because he believed it would generate goodwill and accumulate political capital and influence,” the lawsuit said.

RELATED: FTX bankruptcy will be ‘really expensive’, but for a reason: accountant

The lawsuit included four counts of fraudulent transfer, two counts of recovery of assets, one unjust enrichment charge against Latona, dismissal of bankruptcy claims against life science companies, breach of fiduciary duty by Bankman-Fried and breach of fiduciary duty by Beckstead. includes collusion. , and Ringens-U.

The new FTX management has taken an aggressive stance on embezzlement of client funds. Recovering charitable donations has proven to be a particularly complex endeavor because the money has gone to wayward recipients, along with major universities, researchers, and even students.

The Magazine: Can You Trust Crypto Exchanges After the FTX Collapse?