FTX directors aim to raise $71 million from charitable and life science divisions [Advance Cash ]

Ftx Directors Aim To Raise $71 Million From Charitable And Life Science Divisions

FTX (CRYPTO:FTT) The administrators are on a mission to recover more than $71 million from the charitable and life sciences divisions of the insolvent exchange.

The FTX Foundation and Sam Bankman FriedThe Latona Life Sciences Fund reportedly received around $71.5 million from FTX and Alameda Search.

These funds were invested in the life sciences sector, from February to October 2022, in companies such as Lumen Bioscience, GreenLight Biosciences, Genetic Networks and 4J Therapeutics, reported The Block.


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Legal representatives for the directors of FTX argue that these donations were made for the personal betterment of Bankman-Fried in an effort to recover funds for creditors.

According to court documents filed Wednesday, "The FTX Foundation was the philanthropic arm of the FTX Group of Companies, and Latona was a bogus non-profit corporation organized in the Bahamas."

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Together, the FTX Foundation and Latona have leveraged more than $71 million in combined funds from Alameda and FTX accounts to invest and donate to life science companies for Bankman-Fried's "personal aggrandizement," the filing says.

“While claiming to make these investments for altruistic purposes, Bankman-Fried actually pursued these transactions because he believed they would generate goodwill and amass political capital and influence for himself,” the filing adds.

Also Read: Nasdaq Halts Crypto Custody Service Plans Over Regulatory Concerns

The bankrupt company's efforts to recover funds from its customers continue. Last month, Alameda Research's legal team attempted to recover $700 million that Bankman-Fried allegedly transferred to a former aide to hillary clinton and investment company K5 Global in 2022.

The lawsuit identifies Global K5, Capital of Mount OlympusAnd SGN Capital of Albanyas well as associated entities and Global K5 co-owners Michael Kives And Bryan Baumas defendants.

The lawsuit alleges that Bankman-Fried transferred millions to Kives, K5 Global and Baum after attending a social event hosted by Kives in 2022.

The suit read, "True to Kives' reputation as a high-profile 'super-networker', dinner attendees included a former presidential candidate, top actors and musicians, reality TV stars and several billionaires."

Read next: Sino Global taps former FTX boss, Bankman-Fried associate Constance Wang to run games

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