FTX sues SBF and others to recover misused $1B

Defunct crypto platform FTX’s new management sued its co-founder, Sam Bankman-Fried (SBF) and former executives to recoup funds worth over $1 billion that they allegedly misappropriated for personal use.

The current and new FTX management filed the complaint in the U.S. Bankruptcy Court in Wilmington, Delaware.

Others mentioned in the lawsuit include SBF’s ex-girlfriend and Alameda Research hedge fund CEO Caroline Ellison, former FTX technology chief Zixiao “Gary” Wang, and the firm's ex-engineering director Nishad Singh.

The lawsuit alleges the former executives received more than $725 million in company stock, and FTX gained nothing that would justify the equity. It also claims they purchased a stake in the publicly traded Robinhood stock brokerage for $546.1 million.

SBF had personally transferred $10 million to his family.