FTX Pursues Charitable Investments and Donations to Life Science Companies

The money was intended to bolster the political influence and goodwill of Bankman-Fried and did not benefit FTX or Alameda Research.

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FTX's efforts to recover client funds continue. Alameda Research and FTX filed a lawsuit on July 19 seeking reimbursement of $71.6 million in allegedly commingled funds from companies and customers related to investments and donations to life sciences companies.

Defendants in the lawsuit are six life science companies, the FTX Foundation philanthropic organization, the "dummy" nonprofit Latona Group Biosciences, former FTX CEO Sam Bankman-Fried, FTX Foundation director Nicholas Beckstead, and Latona director Ross Rheingans-Yoo.

The lawsuit claims that the FTX Foundation and Latona donated or invested the funds in six life science companies for the personal benefit of Bankman-Fried and Rheingans-Yoo and without any benefit to Alameda Research or FTX. These are eight transfers from Alameda Research to companies made between February 2022 and October 2022 on behalf of Latona.

FTX Seeks Recoup By Avoiding $71.5M Transfers From

Life Sciences, Lumen Bioscience, GreenLight Biosciences Holdings, PBC, Riboscience, Genetic Networks, 4J Therapeutics, Latona Biosciences, FTX Foundation, SBF, Ross Rheingans-Yoo and Nicholas Beckstead pic.twitter.com/T7lF3sZmzN

— Sunil (FTX 2.0 Champion) (@sunil_trades) July 20, 2023

Investments in life science companies were allegedly made without due diligence or independent valuation. According to the suit:

"Each of these transfers was made with the intent to obstruct, delay or defraud present or future creditors, a fact known to the FTX Foundation, Latona and Bankman-Fried."

"Bankman-Fried actually pursued these transactions because he believed it would generate goodwill and amass political capital and influence for himself," the lawsuit adds...