According to a report by Cointelegraph on May 18, the present leadership of FTX filed a lawsuit on Thursday, against its top executives and former CEO, Sam Bankman-Fried alleging financially benefiting from the company’s procurement in 2022 of Embed Financial Technologies, a platform for stock clearing. The present management of FTX is expecting to retrieve over $240 million.
FTX Trading Ltd. was co-founded by Gary Wang and Sam Bankman-Fried, back in 2019. The cryptocurrency exchange went bankrupt in November 2022.
Another lawsuit on May 17 was filed looking to retrieve funds from Michael Giles, CEO of Embed and Embed’s investors, alleging FTX for paying vastly excessive amounts worth $220 million for the platform. According to the lawsuit, Lawrence Beal, chief technology officer of Embed, was astonished at the excessive payment of FTX for Embed after just one meeting with Embed CEO, Giles.
The employees of Embed were also provided bonuses for retention worth $70 million upon its purchase of Embed, of which, $55 million was allegedly paid to Michael Giles.
Embed CEO Giles Was Vastly Paid By FTX
CEO of Embed, Michael Giles had confined the agreement of the acquisition of his company on June 20 and its closure on September 30 in 2022. During this period, Giles was reportedly receiving a whopping amount of $490,000 per day on the basis that he was working all days of the week. Giles was also granted an outstanding $103 million as he was the largest investor at Embed at the closure of the deal with it.
FTX now aims to retrieve $236 million from Embed employees and Giles for misappropriation of payments. It also seeks the additional retrieval of $6.9 million from other investors of Embed.