Bankrupt cryptocurrency exchange FTX has sued former employees of an affiliate in Hong Kong for allegedly fraudulently transferring assets.
FTX is looking to recover assets worth about $157.3 million, a court filing showed.
FTX claims Michael Burgess, Kevin Nguyen, Darren Wong, Matthew Burgess, Lesley Burgess and others — former employees at Salameda, a Hong Kong-based FTX affiliate controlled by Sam Bankman-Fried — had preferentially or fraudulently withdrew assets from FTX prior to the bankruptcy proceedings.
FTX alleged that the vast majority of these assets — more than $123 million — were withdrawn on or after November 7, including over $73 million allegedly fraudulently transferred to Michael Burgess.
Lesley Burgess, Michael Burgess’ and Matthew Burgess’ mother, also benefited from the connections and successfully withdrew assets “just hours before the FTX.com exchange halted withdrawals on November 8, 2022,” the filing said.