FTX Pays $700M to Politicians and Celebs: Now They Want It Back
• FTX’s sister firm, Alameda Research is seeking the return of $700 million paid to politicians and celebrities.
• Filings detail the trail of money from Alameda Research to two well-connected agents.
• Lawyer’s Argument: SBF Treated FTX and Alameda as ‘Slush Funds’.
FTX Paid $700M to Politicians and Celebrities: Now They Want It Back
FTX’s sister firm, Alameda Research is seeking the return of a total of $700 million that was allegedly used to gain access to influential figures such as politicians and celebrities. On Thursday, June 22nd, a court filing by Alameda Research detailed Sam Bankman-Fried’s dealings with two prominent agents who had access to major figures in politics and show business. The funds were reportedly used to make payments to K5 Global—an advisory firm founded by Michael Kives and Bryan Baum—as well as other entities under their control.
K5 Global Founder: Former Clinton Aide with „Extensive Connections“
The court filing details a number of payments made by Sam Bankman-Fried (SBF) amounting to $700 million dollars which were transferred over to K5 Global—an advisory firm founded by Michael Kives and Bryan Baum. Kives is known for his extensive network of connections including celebrities and politicians which he leveraged in his work with K5 Global. He is also a former Creative Artists Agency (CAA) agent as well as a former aide to Bill and Hillary Clinton.
Term Sheet Signed between SBF, Kives & Baum
The complaint alleges that Bankman-Fried, Kives, and Baum signed a term sheet in February 2022 which stipulated that Bankman-Fried or a related entity would personally give each of them $125 million individually. Additionally, SBF also agreed to invest billions into K5 Global and affiliated entities over the next three years. Furthermore, it was reported that Alameda Research Ltd had transferred another $200 million into entities controlled by both men bringing the total pre-petition transfers up to an estimated $700 million dollars.
Alameda Lawyers: SBF Treated FTX & Alameda Like „Slush Funds“
The lawyers argue that these deals did not provide equivalent value back in return for the large sums paid out from FTX/Alameda Research suggesting that both men acted with “dishonest minds” knowingly assisting SBF in breaching his fiduciary duty towards FTX/Alameda Research too. They went on further stating that “Bankman-Fried treated the legal entities he controlled as slush funds“.