Crypto Exchange FTX and Alameda Seek to Retrieve $71 Million from Philanthropic and Life Science Entities

Crypto Exchange FTX and Alameda Seek to Retrieve $71 Million from Philanthropic and Life Science Entities

Jul 21, 2023

By Andrew Throuvalas | @andrew-throuvalas

Defunct cryptocurrency exchange FTX and its sister company Alameda Research are seeking clawbacks from FTX's philanthropic arm and other life science entities.

According to court documents filed on Wednesday, the firms are seeking to recover more than $71 million that was allegedly diverted from the FTX Foundation and “Latona” – a “sham non-profit company organized in the Bahamas” – for ex-FTX boss Sam Bankman Fried (SBF)’s personal aggrandizement and political influence.

Lawyers representing FTX and Alameda Research argued that the funds were transferred to life science companies, including Lumen Bioscience Inc. and Platform Life Sciences Inc., purportedly to support “effective altruism” – a philosophy often espoused by SBF before his empire came crashing down.

The philosophy advocates for the redistribution of wealth from wealthy individuals to those in need. However, FTX’s lawyers claim that the true intention behind these transactions was far from philanthropic.