Former FTX CEO Sam Bankman-Fried has thrown a curveball in his legal battle, making an audacious request to the court. He wants his “close friends” to visit him at his parents’ home without undergoing rigorous security checks. While this request has raised eyebrows, it is just one piece of a captivating puzzle surrounding Bankman-Fried’s tumultuous journey.
Bankman-Fried’s lawyers submitted a letter on July 13, seeking an exemption for the listed individuals from the security measures mandated in his bail conditions.
The letter, supported by the government, stated that Bankman-Fried’s bail conditions required a security guard to be present at his parents’ house to screen visitors for electronic devices. However, visitors pre-approved by the court were exempt from these measures.
The attached list of people, which includes close friends, colleagues of Bankman-Fried’s parents, and regular household help, are aware of and willing to comply with the bail conditions.
While the government has reviewed the list and raised no objections, Bankman-Fried’s legal team requested that the list be filed under seal, citing “countervailing factors” and “higher values” within the common law and First Amendment frameworks.
Lawsuit Reveals FTX’s $400 Million Acquisition
In another development, a recent report revealed that FTX spent a staggering $400 million on acquiring Swiss company Digital Assets AG (DAAG) to establish FTX Europe.
The plaintiffs involved in a court action seeking the return of FTX investor funds filed a complaint in the United States Bankruptcy Court for the District of Delaware on July 12, demanding a refund of the acquisition costs.
The complaint alleges that Bankman-Fried and his associates acquired DAAG through Alameda Research for $376 million, despite the Swiss company having limited business and intellectual property.
The acquisition aimed to provide FTX access to European regulators through local ownership. Furthermore, FTX paid substantial amounts to DAAG for IT and consulting services and secured an operating license in Cyprus by purchasing a local company.
The plaintiffs intend to recover a significant portion of the funds from the defendants, including co-founders and former top executives of DAAG or FTX Europe. The complaint argues that each transfer in the DAAG deal was made with the intent to hinder, delay, or defraud creditors.
The plaintiffs are seeking the full amount of these transfers, along with interest, costs, and fees, for the benefit of the FTX bankruptcy estate, totaling no less than $323.5 million. Amidst the unfolding legal battle, the final result remains uncertain, casting a shadow of ambiguity over Bankman-Fried and the future trajectory of FTX.
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