The former boss of failed crypto exchange FTX, Sam Bankman-Fried, is facing a $1 billion lawsuit from the company he founded.
Bankman-Fried is being sued alongside three former executives by FTX, with the legal action spearheaded by John Ray, a refinancing specialist who took over as CEO after the company’s collapse in November 2022.
Since that time, Bankman-Fried has been charged with fraud and conspiracy and was extradited to the United States from Bermuda following his arrest.
Ray stated that the lawsuit aims to recover the losses incurred by creditors and investors, with reports indicating that approximately $1 billion in investor assets is currently unaccounted for.
The lawsuit also includes former chief technology officer Gary Wang, FTX’s former director of engineering Nishad Singh, and Caroline Ellison, who was the CEO of Alameda Research, a trading firm founded by Bankman-Fried and associated with FTX.
Additionally, Bankman-Fried is facing criminal charges related to the operations of FTX and could potentially face decades in prison if convicted.