Sam Bankman-Fried being sued by FTX

Former FTX CEO Sam Bankman-Fried allegedly transferred US$700 million from client funds out of self-interest to the investment firm K5 Global.

FTX is demanding US$700 million from the investment firm K5 Global. This would be for embezzling customer funds from the insolvent crypto exchange, report Reuters. According to the lawsuit filed in bankruptcy court in Wilmington, Delaware, the former CEO and founder of FTX, Sam Bankman-Fried, want to use company assets for private purposes.

Through his ties to K5 Global, Bankman-Fried tried to get bailout money, according to the lawsuit. The co-founder of K5 Global is Michael Kives. Bankman-Fried reportedly described Hillary Clinton's former adviser as a "one-stop shop for political connections and celebrity partnerships."

According to FTX, the founders of K5 Global, Michael Kives and Bryan Baum, allegedly enriched themselves with the investments. K5 Global, however, denies these allegations.