SUSPICIOUS

FTX Sues Ex-Clinton Aide Over Huge Investment From Sam Bankman-Fried

FTX alleged the investments into Michael Kives’ firm, K5 Global, filled the pockets of Kives and fellow execs without any benefit to FTX or its customers.

The bankrupt cryptocurrency company FTX is suing a former aide to Hillary Clinton and his investment firm to recover $700 million in investments allegedly made with misappropriated funds. According to court filings, disgraced FTX founder Sam Bankman-Fried—who has been indicted on fraud and money laundering—authorized the transfer of large sums to Michael Kives and his firm K5 Global. FTX alleges the investments to K5 filled the pockets of Kives and fellow execs without any benefit to the crypto exchange or its customers. Bankman-Fried, who called Kives “the most connected person I’ve ever met,” apparently wanted to leverage the ex-aide’s celebrity connections, the complaint states. In a statement, a K5 spokesperson told Reuters the firm “was under the impression—like many others—that SBF was completely legitimate, and that they were entering into a fair, long-term, and mutually beneficial business relationship.” Kives did not respond to a request for comment from Reuters, and a Bankman-Fried spokesperson declined to comment.