Current executives of FTX sued former executives.
According to court documents filed on May 17, 2023, the current directors of FTX and its subsidiary Alameda Research are Sam Bankman-Fried, former CEO of FTX, Nishad Singh, former engineering director of FTX, and Gary Wang, FTX co-founder. filed a lawsuit against
FTX’s Current Executives Sue Against Former Executives for Irregularities
FTX Limited and its subsidiaries have taken three former FTX executives to court, arguing that the company is now “worthless” because of a deal. Allegedly, Bankman-Fried, Nishad Singh, and Gary Wang bought Embed, a stock clearing company, and Embed, a FINRA-licensed broker-dealer, prior to FTX’s filing for bankruptcy. However, the FTX Stocks service, which was planned to be launched as a result of this agreement, never materialized.
According to the lawsuit’s claims, the trio used FTX Group shares to complete the deal. The deal was completed just a few weeks before 11 November 2022. FTX lawyers allege that the assets of the FTX Group have been lavishly spent on massive fraud, private homes, jets, political donations and miscellaneous investments.
Allegedly, the Embed acquisition was fully funded by Alameda, and lawyers referred by FTX Insiders (Bankman-Fried, Singh and Wang) allege that Alameda secretly and illegally redirected assets belonging to FTX.com.
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