FTX had earlier alleged that Bankman-Fried and other former executives of the cryptocurrency exchange used customers’ funds to pay for their luxury apartments, political contributions, and personal projects.
There seems no end to the legal troubles of Sam Bankman-Fried, the founder of the bankrupt crypto exchange FTX. Amid the trial in high-profile multi-million dollar fraud cases against Bankman-Fried, in a fresh lawsuit, FTX has alleged that he was planning to purchase the small Pacific island nation of Nauru in case the world came to an end, according to reports.
The lawsuit was filed on Thursday, July 20, by FTX against Bankman-Fried and three other former top executives of the bankrupt crypto exchange to recover $1 billion dollar, according to a Guardian report. The lawsuit filed in a Delaware bankruptcy court in the United States, also included a memo which carried a detailed plan to buy Nauru by Bankman-Fried’s brother Gabriel.
Come the great fire or flood, he would move himself and his colleagues in the effective altruism movement into a bunker there, to wait out the apocalypse, according to the latest allegations, according to a Quartz report.
FTX alleged that Bankman-Fried and other executives named in the lawsuit misappropriated funds for their pet projects. The transfers happened between February 2020 and November 2022 when FTX filed for bankruptcy.
In previous charges against him, FTX had earlier alleged that Bankman-Fried and other former executives of the cryptocurrency exchange used customers’ funds to pay for their luxury apartments, political contributions, and personal projects, reported Reuters.
FTX has alleged that Bankman-Fried and his former executives’ collective fraud caused the company to collapse. FTX accused Bankman-Fried and his team members of using $546 million in May last year to buy shares of Robinhood Markets Inc., while Ellison paid herself a bonus of $28.8 million, the company claimed. FTX informed the court that all fake transactions orchestrated by Bankman Fried occurred between February 2020 and November 2022.
Denying all the allegations, Bankman-Fried in March pleaded not guilty in court and claimed that FTX had inadequate risk management, which is why the company failed. In May 2023, he asked US District Judge Lewis Kaplan to dismiss 11 out of 13 fraud and conspiracy charges against him, but his plea was rejected by the US court.
