Bankrupt cryptocurrency entities FTX, FTX.US, and Alameda Research have filed a lawsuit against former executives Sam Bankman-Fried (SBF), Nishad Singh, and Gary Wang for allegedly spending FTX Group’s assets on the acquisition of stock clearing firm Embed Financial Technologies. The lawsuit seeks to recover the funds spent during the acquisition and accuses the former management of inflating the valuation of Embed and purchasing the platform for more than it was worth. FTX CEO John Ray seeks to revoke Simple Agreements for Future Equity (SAFEs) issued by the bankrupt entity and recover the funds spent during the acquisition. The plaintiffs have also filed an adversary lawsuit against Embed's former equity holders, including Silicon Valley venture capital firms like Y Combinator, Bain Capital Ventures, and 9Yards.
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