The management team of FTX has taken legal action against former employees of its Hong Kong subsidiary, seeking the restitution of $157.3 million that was fraudulently withdrawn.
This occurred just before the company initiated the process of filing for bankruptcy.
The individuals named in the lawsuit are Michael Burgess, Matthew Burgess, Leslie Burgess, Kevin Nguyen, Darren Wong, and two firms affiliated with FTX.
According to the lawsuit, within a 90-day period leading up to FTX’s Chapter 11 bankruptcy filing, these individuals made withdrawals from their FTX and FTX.US accounts.
The lawsuit alleges that transactions amounting to over $123 million occurred on or after November 7, with Michael Burgess being the primary recipient.
In March, FTX representatives estimated that the total deficit of funds needed to cover creditors’ claims was $8.7 billion, with approximately $1.6 billion in Bitcoin.
However, in June 2023, the current management team announced plans to return around $7 billion in liquid assets. In May, FTX also filed a lawsuit against Genesis, seeking the return of $3.9 billion.
