FTX seeks to claw $700M from Bankman Fried friends and affiliated funds
June 22. 2023
By Derek Anderson
After a Hollywood dinner party, hundreds of millions of dollars of “avoidable” transfers were sent from Alameda to investment firm K5 Global, the suit alleges.
FTX has filed a lawsuit in the United States Bankruptcy Court for the District of Delaware against some of the investment firms it had ties to before its collapse. The suit, filed June 22, contains 16 counts and seeks over $700 million from the defendants.
The lawsuit filing names as defendants incubator and investment company K5 Global, Mount Olympus Capital and SGN Albany Capital, as well as affiliated entities and K5 Global co-owners Michael Kives and Bryan Baum. Kives is a former agent for the CAA talent agency and a former aide to Hilary Clinton. The suit noted the then-CEO of FTX, Sam Bankman-Fried (SBF), attended a social event hosted by Kives in 2022:
“True to Kives’s reputation as a high-profile ‘super-networker,’ the attendees at the dinner party included a former Presidential candidate, top actors and musicians, reality TV stars and multiple billionaires.”
Subsequently, the suit alleged, FTX-affiliated crypto trading firm Alameda Research transferred $700 million to Kives, Baum and K5 Global, but they constructed the deals as coming from shell companies SGN Albany and Mount Olympus Capital.
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