In a bid to recover as many assets as possible and potentially even reboot FTX, the bankrupt exchanges’ new leadership has been filing clawback requests from previous business partners and donation recipients.

Clawback requests have also been filed against former executives, including SBF himself, although the amounts subject to possible returns from executives pale in comparison to the amounts requested from other platforms, such as Genesis.

Spurious Investments

Yesterday, FTX’s legal team filed a lawsuit against several hedge funds, including SGN Albany Capital, K5 Global, and Mount Olympus Capital. Entities affiliated with these hedge funds are also named in the document, as well as K5 executives Bryan Baum and Michael Kives.

According to the lawsuit, Sam Bankman-Fried had gone to one of many networking events hosted by the pair of C-suite hotshots. Following this event, SBF invested about $700 million into the funds administered by the defendants.

Although this may seem a cursory amount, considering the amounts the FTX Group regularly invested into various ventures, these were allegedly void of any real meaning.

“Bankman-Fried, Kives and Baum signed a bare-bones term sheet providing that “Sam Bankman-Fried or a related entity” would give each of Kives and Baum $125 million personally and would invest billions of dollars in K5 Global and affiliated entities […]. The Term Sheet was little more than a cursory list of investment ideas, and repeatedly stated that the actual “mechanics” of these very substantial investments would be later worked out “in the long form documents.” Though the parties had not agreed on any final terms, funds were sent the day after signing.”

Aside from charges of unjust enrichment brought against the hedge funds themselves, Kives and Baum have been charged with aiding and abetting breaches of fiduciary duty in “one of the biggest financial frauds in his