FTX seeks to claw $700M from Bankman Fried friends and affiliated funds

FTX has filed a lawsuit in Delaware bankruptcy court against some of the investment firms with which it had ties prior to its bankruptcy. The lawsuit, filed June 22, includes 16 counts and seeks more than $700 million against the defendants.

The lawsuit names incubator and investment firm K5 Global, Mount Olympus Capital, SGN Albany Capital, and affiliates and co-owners of K5 Global, Michael Kives and Bryan Baum, as defendants. Kaibus is former CAA talent agency agent and former aide to Hillary Clinton. The complaint alleges that FTX’s then-CEO Sam Bankman-Fried (SBF) attended a social event hosted by Kybs in 2022.

“Consistent with Kyves’ reputation as a high-profile ‘super-networker,’ attendees at the dinner included former presidential candidates, top actors and musicians, reality TV stars, and multiple billionaires.”

Later, in the lawsuit, FTX-affiliated cryptocurrency trading firm Alameda Research transferred $700 million to Kaibus, Baum and K5 Global, but those transactions were from shell firms SGN Albany and Mount Olympus Capital. claimed to have been assembled.

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The lawsuit seeks the return of funds ultimately transferred from Alameda Research to SGN Albany Capital and funds transferred from Kybs, Baum and SGN Albany Capital to Mount Olympus Capital.

The transfer was described as carried out “without receiving equivalent value” and, crucially, avoidable. Under U.S. bankruptcy law, an avoidable transaction is a transaction that can be reversed under bankruptcy or other law.

FTX moves to recover $800 million from K5 Global, Olympus Capital, SGN Albany and others.

Defendants are also charged with aiding and abetting SBF, dishonest assistance, and unjust enrichment. pic.twitter.com/IPcDEtuFxL

— FTX 2.0 Coalition (@AFTXcreditor) June 22, 2023

Kaibus, Baum, and SBF also developed a personal rapport, according to the complaint, with Baum even having his own bedroom at the FTX executive’s Bahamas residence. After the FTX demise, “Kaibus and Bohm worked behind the scenes with Bankman Freed on a strategy to find someone to bail out the FTX Group (and protect their golden goose).”

Nine of the counts of action involved funds transfers. Mr. Kaibes and Mr. Boam were individually charged with breach of fiduciary duty and aiding and abetting dishonest assistance, and SGN Albany Capital was charged with unjust enrichment.

Cointelegraph reached out to K5 Global for comment but did not immediately receive a response.

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