{"id":84883,"date":"2023-09-22T14:50:05","date_gmt":"2023-09-22T11:50:05","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=84883"},"modified":"2025-09-12T20:01:16","modified_gmt":"2025-09-12T17:01:16","slug":"ftx-sues-former-hong-kong-subsidiary-staff-to-recover-157-3-million","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ftx-sues-former-hong-kong-subsidiary-staff-to-recover-157-3-million\/","title":{"rendered":"FTX sues former Hong Kong subsidiary staff to recover $157.3 million"},"content":{"rendered":"<p>The current FTX leadership <a href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MjUzMTA1Mw==&#038;id2=-1\">filed a suit<\/a> against former employees of the Hong Kong subsidiary seeking the return of $157.3 million that were fraudulently withdrawn. This occurred on the eve of<a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">the start of bankruptcy proceedings<\/a>.<\/p>\n<p>The defendants were Michael Burgess, Matthew Burgess, Leslie Burgess, Kevin Nguyen, Darren Wong, and two entities affiliated with the platform.<\/p>\n<p>According to the document, during the 90-day period prior to filing for bankruptcy protection under <a href=\"https:\/\/forklog.com\/en\/news\/why-crypto-firms-opt-for-chapter-11-bankruptcy-under-the-u-s-bankruptcy-code\">Chapter 11<\/a>, the aforementioned individuals benefited from withdrawals from accounts at FTX and FTX.US.<\/p>\n<p>The suit states that transactions totaling more than $123 million occurred on November 7 and thereafter, with the primary recipient being Michael Burgess.<\/p>\n<p>In a March presentation, the exchange&#8217;s representatives estimated the aggregate shortfall to cover creditor claims at <a href=\"https:\/\/forklog.com\/en\/news\/ftx-reports-1-6-billion-bitcoin-shortfall\">$8.7 billion<\/a>, of which about $1.6 billion was in Bitcoin. In June 2023, the platform&#8217;s current management team said it had recovered liquid assets <a href=\"https:\/\/forklog.com\/en\/news\/new-ftx-leadership-has-returned-7-billion-in-liquid-assets\">worth about $7 billion<\/a>.<\/p>\n<p>In May, FTX filed a suit against Genesis demanding <a href=\"https:\/\/forklog.com\/en\/news\/ftx-seeks-4-billion-from-bankrupt-genesis\">return $3.9 billion<\/a>. Subsequently, the amount of claims was reduced to $2 billion. The companies <a href=\"https:\/\/forklog.com\/en\/news\/ftx-and-genesis-settle-175-million-payment-to-alameda-research\">agreed to pay $175 million<\/a> to Alameda Research.<\/p>\n<p>In July, lawyers<a href=\"https:\/\/forklog.com\/en\/news\/ftx-seeks-71-million-return-from-its-charitable-divisions\">demanded the return of $71 million<\/a> from exchange-affiliated charitable units.<\/p>\n<p>In September, the court approved Robinhood&#8217;s buyback of 55 million shares worth <a href=\"https:\/\/forklog.com\/en\/news\/robinhood-to-buy-back-55-million-shares-previously-owned-by-sam-bankman-fried-for-605-7-million\">$605.7 million<\/a>, which previously belonged to the platform&#8217;s founder Sam Bankman-Fried.<\/p>\n<p>In the same month, FTX filed a suit against LayerZero demanding <a href=\"https:\/\/forklog.com\/en\/news\/ftx-sues-layerzero-seeks-86-million\">return $86 million<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX&#8217;s leadership filed a suit against former Hong Kong subsidiary staff seeking the return of $157.3 million allegedly withdrawn fraudulently.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1236],"class_list":["post-84883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"36","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=84883"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84883\/revisions"}],"predecessor-version":[{"id":84884,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/84883\/revisions\/84884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=84883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=84883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=84883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}