FTX and its affiliated hedge fund firm, Alameda Research are planning to recover USD $71 million spent by the bankrupt cryptocurrency exchange on philanthropy. The lawyers representing the companies plan to recover funds from FTX Foundation.

Filed before a US bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term court in Delaware, FTX's lawyers have accused several life science companies, including Lumen Bioscience Inc., Greenlight Biosciences Holdings, and Platform Life Sciences Inc., of allegedly receiving funds from the collapsed exchange.

Alleged Misappropriation of Funds

The attorneys added that although the funds were purported to promote effective altruism, a philosophy supporting the transfer of resources from wealthy people to the poor, FTX made the donations so that Sam Bankman-Fried, the exchange's former CEO, could gain political influence and goodwill. The donations were made in collaboration with Latona Biosciences Group, a purported non-profit organization based in the Bahamas, the filing noted.

"Together, the FTX Foundation and Latona took more than USD $71 million of the commingled funds from Alameda and FTX accounts to make investments and donations to life sciences companies for Bankman-Fried's personal aggrandizement," the filed document stated.

In a separate document submitted to the bankruptcy court, the New York-based Metropolitan Museum of Art said it had decided to return USD $550,000 donated by Sam Bankman-Fried before the collapse of the exchange.

FTX Intensifies Recovery Efforts

The development is the latest in the efforts made to recover funds allegedly misappropriated by the former executives of FTX. A week ago, Finance Magnates reported that FTX's bankruptcy lawyers were planning to recover USD $323 million paid to the leadership of FTX Europe, a European subsidiary of the crypto exchange.

The money was reportedly paid by Bankman-Fried for the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term of DAAG, a Swiss company that was later renamed FTX Europe. On top of that, FTX Europe's leadership is believed to have received USD $100 million for the acquisition of K-DNA, an entity that was later integrated into the company for 2 million euros.

In June, FTX released a report showing that USD $7 billion out of an estimated USD $8.7 billion owed to FTX's customers had been recovered. According to an investigation done by the exchange's bankruptcy team, the alleged commingling of funds by FTX's former executive team complicated its efforts to recover the missing money.