FTX Sue Against SBF, Singh And Wang To Recover Company Shares

Key Points:

• FTX has filed three lawsuits to recover its shares from SBF and his 2 associates
• The company also sued and requested the recovery of $156 million and the remainder related to stock, options, and cash securities from Embed’s former founders and executives.
• This is the first official action taken by FTX CEO John Ray against former management.

FTX has filed three lawsuits to recover company’s shares from SBF and his 2 associates and recover funds from Embed’s former founders and executives.

FTX sued the company’s former management, SBF, Nishad Singh, and Gary Wang, for revoking its shares. This is the first official action taken by the new CEO, John Ray, against previous management.

According to some court documents related to the lawsuit on May 17, FTX (especially WRS & Alameda) sued the former shareholders of Embed and asked for the recovery of $6.9 million.

The company also filed a similar recall for Embed founder Michael Giles, asking to recover $156 million and the remainder related to shares, options, and securities.

Previously, Embed was acquired in March 2022 for $220 million, of which $157 million went to founder Michael Giles, while FTX’s recent Embed auction ended with a final bid of just $1 million.

The bankruptcy attorneys of this cryptocurrency exchange said at the trial that they had recovered more than $7.3 billion in cash and liquid cryptocurrencies and liquid investment securities raised more than $800 million since January in an attempt to salvage the bankrupt company’s finances.

The exchange’s new CEO, John Ray, detailed inappropriate transfers at the crypto exchange and described it as a “complete failure” of the controls.

Looking to the future, FTX is in talks with stakeholders about options to restart its crypto exchange, and they could decide on that in Q2, Dietderich said. The restart of this exchange will have significant implications for customers who had crypto deposits at this bankrupt exchange but were locked out when the exchange announced bankruptcy.

FTX customers in Japan are the only ones able to withdraw any funds so far due to the country’s relatively tight crypto regulations.

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