FTX Takes Action to Retrieve 157 Million Dollars

The bankrupt crypto company FTX has filed a lawsuit to retrieve $157.3 million from employees of its former affiliate in Hong Kong. The exchange alleges that former employees at Salameda fraudulently transferred assets prior to bankruptcy proceedings.

Bankrupt crypto exchange FTX has initiated a significant lawsuit against former employees of its Hong Kong affiliate, Salameda. The company’s claim is based on allegations that those former employees improperly transferred assets before bankruptcy proceedings.

According to the lawsuit, it is stated the former employees took advantage of withdrawal privileges through privileged transfers within the 90 days preceding the bankruptcy application, known as the “Preference Period”.The total value of the transactions during this period amounts to approximately $157.3 million. Interestingly, a significant portion of this amount was withdrawn from November 7 onwards. It is also claimed that $73 million of this amount was fraudulently transferred to Michael Burgess.

Names like Michael Burgess and Matthew Burgess Stand Out

Michael Burgess, Matthew Burgess, and some other employees mentioned in the lawsuit are among those accused of fraudulent money transfers.

Among the allegations, it is claimed that the defendants leveraged their connections with FTX personnel to gain priority over other customers during the asset withdrawal process. Furthermore, in messages shared on the communication app Slack, it was revealed that Matthew Burgess requested other FTX employees to “revoke” some pending withdrawal requests from Michael Burgess’s FTX US exchange account.

You may interested in; Stanford University Will Return Millions of Dollars in Donations Received from FTX

Source: Coindesk

Previous Article

Coinbase's Chief Legal Officer Paul Grewal Commented on the Possibility of a Base Token

Next Article

According to JPMorgan, Ethereum's Shanghai Upgrade Did Not Positively Impact Activities

Related Posts