Allegedly FTX insiders purchased the Embed stock trade platform for a wildly inflated price, for personal benefits. Now FTX filed back-to-back two lawsuits to recover funds.
FTX was a second-ranked crypto trade platform but collapsed badly in early Nov 2022. On 19 Nov 2022, the FTX team filed for bankruptcy under the Chapter 11 code. Allegedly FTX co-founder misused & mismanaged the FTX customers’ funds for personal benefits and this was the main reason why the platform collapsed badly. The current FTX leadership wants to revive the platform again but experts claim it will not be possible to gain trust among the customers again.
On 17 May, FTX Lawyers filed a Lawsuit against FTX’s former CEO & founder Sam Bankman-Fried (SBF) & top FTX insiders over paying a very high price for a stock trade platform Embed.
Now latest reports revealed that the FTX leadership team also filed a separate lawsuit against Embed CEO Michael Giles and its shareholders.
The second lawsuit is a legal pressure against the Embed shareholders & its CEO to return the funds that they secured as an additional benefit in the deal. FTX wants a total of $244 million in funds from the Embed shareholders.
Reportedly the FTX Group failed to maintain all the records & business deals under full control. FTX insiders took that loose control situation as an opportunity to make money unethically.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.