Share this article
FTX Units Sue Former Executvies, Embed Shareholders to Retrieve $243M From Acquisition
The estate alleges FTX founder Sam Bankman-Fried and other "insiders" misappropriated company funds to acquire Embed in late September 2022, weeks before the crypto exchange filed for bankruptcy.
Updated May 19, 2023, 4:54 p.m. Published May 18, 2023, 9:35 a.m.
The estate for bankrupt crypto empire FTX is seeking to claw back around $243 million from a suite of former executives – including founder Sam Bankman-Fried – and Embed Financial shareholders, a broker-dealer acquired using FTX funds.
In three separate complaints filed to a Delaware bankruptcy court on Wednesday, the estate alleges that the "FTX insiders" – namely Bankman-Fried, Co-Founder Gary Wang, Director of Engineering Nishad Singh and Caroline Ellison, who ran the trading arm Alameda – used misappropriated FTX funds in late September to acquire Embed only weeks before the crypto exchange filed for bankruptcy.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The complaints target the FTX insiders, Embed CEO Michael Giles, and several other former Embed equity holders.
Alameda and West Realm Shires (better known as FTX US) are seeking to reclaim money paid to Embed shareholders under U.S. bankruptcy laws, by asking the court to designate the funds as "fraudulent transfers," of the company's assets, so that they could be paid back to creditors.
FTX's new management has, in several court filings, alleged company funds were misused by former executives.
Read More: U.S. Court Asked to Reverse Decision to Not Appoint Independent Examiner in FTX Bankruptcy
CORRECTION (May 19, 14:00 UTC): Corrects headline and content of article to show clawback figures in full.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Crypto Firm Tether Says It Wants to Take Over Italian Football Club Juventus
The issuer behind the most popular stablecoin said that if the bid succeeds, it prepares to invest $1 billion in the football club.
What to know:
- Tether said it aims to take over popular Italian football club Juventus FC.
- The firm proposed to acquire Exor's 65.4% stake in an all-cash offer, and intends to make a public offer for the rest of the shares.
- Tether reported net profits exceeding $10 billion this year, while its flagship token USDT is the world's dominant stablecoin with a $186 billion market capitalization.
Top Stories
