FTX Files Lawsuit Against Former Salameda Employees to Recover $157 Million
According to the recent court filing, FTX, the bankrupt crypto exchange, has filed a lawsuit against former employees of Salameda, a Hong Kong-incorporated entity affiliated with FTX, to recover about $157.3 million.
The Hong Kong firm was said to be controlled by the former CEO and founder of the bankrupt FTX, Sam Bankman-Fried, who is currently behind bars awaiting trial.
The former employees are alleged to have participated in the fraudulent withdrawal of assets from FTX a few days before it filed for bankruptcy in November 2022.
The lawsuit alleged Michael Burgess, Matthew Burgess, Lesley Burgess (their mother), Kevin Nguyen, Darren Wong, and two companies, namely 3Twelve Ventures and BDK Consulting, that co-toll multiple assets on FTX.com and FTX.us for fraudulently withdrawing assets before the exchange filed for bankruptcy.
Three months before FTX filed for bankruptcy in 2022, the listed names benefitted from preferential withdrawals that allowed some customers to withdraw some of their assets before they filed for bankruptcy and "are avoidable under the Bankruptcy Code."
According to the filing, the alleged personnel had connections with some FTX employees, which they exploited to ensure they were prioritized over other customers.
According to FTX, the defendant rushed to their connections to withdraw their funds, which are currently worth more than $123 million of the total $157.3 million on its own on the exchange on or after Nov. 7 before the withdrawal window closed.
The lawsuit stated that the withdrawals were made "with the intent to hinder, delay, or defraud FTX US's present or future creditors."
FTX has been actively pursuing the recovery of owed payments from various affiliated parties, marking this as not
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