Gabriel Bankman-Fried, the younger brother of former FTX CEO Sam Bankman-Fried (SBF), planned to acquire the nation of Nauru using platform client funds. According to The Block, citing a new FTX Group lawsuit.
The aim was to turn the island into a post-apocalyptic sanctuary for believers in эффективный альтруизм. The plans also included establishing a site for human-genetics experiments and “other things that are useful to do in a sovereign country”.
The exchange’s management is seeking to recover more than $1 billion that SBF and other FTX executives diverted or reinvested.
The complaint details transactions involving the founder’s family, including those disclosed earlier.
The document states that the father of former FTX founder Sam Bankman-Fried (SBF), Joseph, used part of a $10 million loan obtained illegally from the platform to fund his son’s criminal defense.
According to FTX Group lawyers, the younger Bankman-Fried sent $10 million from FTX US funds to his personal account on the exchange, then transferred this amount to his father’s account on the same platform. The latter directed $7 million to Morgan Stanley and TD Ameritrade, while the remainder lost more than $1 million on unsuccessful cryptocurrency trades.
According to the complaint, the FTX Foundation was funded from customer funds and alleged platform loans. Alameda Research and FTX similarly supported another SBF-founded organization, Guarding Against Pandemics.
Earlier, the exchange leadership пытается вернуть about $71 million from the charitable and biomedical units of the company.
In June, FTX filed suit against SBF’s partners and related firms, seeking the return of $700 million in investments. According to lawyers, the former executive showered money on several companies as part of a scheme of misappropriating exchange assets for personal gain.
Earlier, U.S. prosecutors charged Bankman-Fried with 13 criminal charges. He has not pleaded guilty to any of the counts.