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Breaking News: XRP Price Predictions: AI Forecasts $4.40 By March 2026, Analysts Target Up To $6
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Breaking News: XRP Price Predictions: AI Forecasts $4.40 By March 2026, Analysts Target Up To $6

Bankrupt FTX Exchange Turns Its Attention To Employees, Here’s How Much It Wants

Scott Matherson
Scott Matherson
Last Updated: September 22, 2023 1:00 pm
3 mins read
FTX exchange employees

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It’s been almost a year since the collapse of FTX, but the failed crypto exchange continues to be surrounded by drama. In a flurry of moves to claw back funds for investors, FTX lawyers are now going after employees of Salameda Ltd. 

According to court filings, the employees of Salameda – a Hong Kong-incorporated entity allegedly controlled by former FTX CEO Bankman-Fried, named as defendants were prioritized over other customers as many raced to withdraw their assets from the exchange before its imminent crash on November 11, 2022. 

FTX Wants $150 Million Back

The filing alleges Michael Burgess, Matthew Burgess, Kevin Nguyen, and Darren Wong, all former employees of Salameda, fraudulently withdrew assets in their FTX accounts just hours before bankruptcy. Court filings suggest that while the defendants worked for Salameda, they were effectively employees of the FTX Group, as they worked in senior-level roles at FTX Group companies. 

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Before its imminent crash, FTX had been under public scrutiny as many investors had concerns about the exchange’s liquidity and solvency. This prompted many FTX.com and FTX US customers to make withdrawal requests leading up to billions of dollars. 

As the backlog grew, many had to wait for days for their withdrawals to be processed, with some not receiving their money before the exchange filed for bankruptcy. However, court documents show that the defendants received the benefit of withdrawals ahead of other customers due to their connections to FTX Group executives. 

Personal messages show one of the defendants, Matthew Burgess, urging other employees to expedite a pending withdrawal request for $73 million from one of Michael Burgess’s accounts on the exchange.

The defendants were able to withdraw $157.3 million based on pricing as of August 31, 2023, with the majority of those coming withdrawn on or after November 7, 2022. FTX attorneys are now demanding the full amount be returned, arguing that the funds were improperly transferred to the defendants without the required procedures being followed.

Trying To Recover

Since filing for bankruptcy in November 2022, FTX has filed several lawsuits hoping to claw back money to pay some of its investors and customers. The exchange’s attorneys filed a similar case in July, as it went after executives of its European subsidiary in a bid to recover $323 million. 

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Lawyers recently went after Sam Bankman-Fried’s parents, accusing them of misappropriating funds from the exchange while it was still in operation. However, the parents, both law professors at Stanford Law School, dismissed the claims as completely false. Sam Bankman-Fried is set to be tried in court starting on October 3 for eight charges brought against him. 

FTX FTT Token price chart from Tradingview.com (Employees)

FTT Token recovering amid legal troubles | Source: FTTBUSD on Tradingview.com
Featured image from Cryptonica, chart from Tradingview.com
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Scott Matherson
Scott Matherson

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Read more

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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