Bankrupt crypto exchange FTX has filed a lawsuit against four former employees of Salameda, a Hong-Kong-based affiliate believed to have been under the direct control of the crypto exchange’s former CEO, Sam Bankman-Fried.

Along with two related companies, the named individuals—Michael Burgess, Matthew Burgess, Lesley Burgess, Kevin Nguyen, and Darren Wong—are alleged to have exploited their personal ties to prioritize their asset withdrawals from FTX when the exchange’s future became questionable.

Those withdrawals took place during the crucial 90-day period before FTX’s bankruptcy filing on November 11, known as the ‘Preference Period.’

According to U.S. law, customers who withdrew their crypto assets in the 90 days before FTX filed for bankruptcy could be sued by the company’s creditors to get the money back. This is called a ‘clawback’ under the bankruptcy code.

The total value of these suspected illicit transfers is estimated at $157.3 million, with a significant sum of over $123 million being withdrawn after November 7, 2022.

A notable portion of this, ar

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Author: Mattis Meichler

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