Lawyers for FTX have sued the company’s founder and former CEO, Sam Bankman-Fried, along with three other former executives, PYMNTS reported. The lawsuit claims that Bankman-Fried and his team misappropriated more than $1 billion in the months leading up to FTX’s collapse. Among the alleged beneficiaries of the misappropriated funds was Caroline Ellison, the former head of FTX’s trading arm Alameda Research, who allegedly paid herself a bonus of $22.5 million, part of which was later transferred to her personal bank account. In addition to the lawsuit, a report issued by FTX’s new management provides more details on the alleged fraud. According to the report, Bankman-Fried and a top lawyer of the company repeatedly lied to banks and auditors, left false documents and helped FTX and its affiliates move between jurisdictions to cover up its insolvency. The report even alleges that the lawyer, who is yet to be named, falsified a payment agreement between FTX and Alameda that was backdated by two years and wet-signed by Bankman-Fried to avoid a DocuSign timestamp. Ellison made a private note in March 2022, in which she estimated FTX.com had a cash deficit of more than $10 billion. She has since pleaded guilty to her role in the company’s collapse. The report also states that Bankman-Fried offered a former Bahamian government official a $1 million "bonus" in an effort to quickly secure a necessary business license.
