• Cryptocurrency exchange FTX and Alameda Research are attempting to retrieve $71 million that was allegedly diverted from its philanthropic arm and life science entities.
• The funds were transferred to life science companies purportedly for “effective altruism”, but lawyers allege the true intention was for ex-FTX boss Sam Bankman Fried’s personal aggrandizement and political influence.
• Private messages show SBF confessed that his “ethics stuff” prior to his exchange’s exposure was a front to maintain his reputation, and only ~3% of donations received by the US Democratic Party have been returned so far.
Crypto Exchange FTX Seeks To Retrieve $71 Million
Defunct cryptocurrency exchange FTX and its sister company Alameda Research are seeking clawbacks from FTX’s philanthropic arm and other life science entities in order to recover more than $71 million that had allegedly been used for ex-FTX boss Sam Bankman Fried (SBF)’s personal aggrandizement and political influence.
Funds Diverted To Life Science Companies
The funds were reportedly transferred to life science companies, including Lumen Bioscience Inc. and Platform Life Sciences Inc., purportedly with the goal of supporting “effective altruism” – a philosophy advocating for the redistribution of wealth from wealthy individuals to those in need. Lawyers representing FTX and Alameda Research argue that these transactions were not truly altruistic, however, but instead intended for SBF’s own benefit.
Private Messages Unveil True Intentions
Private messages unveiled by Vox at the time indicated that much of SBF’s “ethics stuff” was merely done as a “front” in order to maintain his reputation amongst others. In February, only ~3% of donations received by the US Democratic Party have been returned so far from FTX or SBF.
Alameda And FTX Receive No Benefits From Transactions
Though neither Alameda nor FTX received any explicit benefits from these investments (equity, shares, etc), lawyers argue that both SBF and Ross Rheingans-Yoo – who headed Latona – intended to personally reap any profits generated if they turned out successful.
Clawback Attempts Continue
FTX’s lawyers continue their attempts at clawing back the money diverted from their philanthropic arm, with no claims yet made as to whether they will be successful in their efforts or not.