- The exchange insists the investment was repayable
- U.S. law allows such deals to be cancelled in bankruptcy
- K5 Global says the claim is unreasonable
- Bankman-Fried invested in the company after a dinner with the firm’s co-owners
- Hillary Clinton was also present
The new FTX management is desperate to accumulate funds from the exchange, generously handed out by former CEO Sam Bankman-Fried. Yesterday, June 22, the company filed a lawsuit against K5 Global, Mount Olympus Capital and SGN Albany Capital and affiliates demanding a $700 million return on the investment.
The paper says the investment had no compensatory value. What’s more, Sam Bankman-Fried used funds for him from Alameda Research accounts that likely belonged to exchange customers.
The lawsuit also names Michael Keeves and Brian Baum, co-owners of K5 Global. Notably, Keeves previously served as an aide to former presidential candidate Hillary Clinton.
The lawsuit states that he was the one who hosted the dinner attended by Bankman-Fried, Clinton and several other celebrities.. This happened in 2022.
Later, Keeves, Baum and SBF developed close ties, both business and personal. They regularly visited Fried’s residence in the Bahamas and helped the exchange’s ex-CEO attract investors when the company was on the verge of bankruptcy.
K5 Global commented on the situation, saying the lawsuit was without merit. Alameda Research and FTX allegedly bought a third of the company, and the proceeds went into trust funds.. For example, FTX managed to get $460 million from Modulo Capital, a fund organized by former SBF colleagues. The organization also filed a claim against Genesis for nearly $4 billion.