In a lawsuit filed within the U.S. Financial catastrophe Court docket for the District of Delaware on Thursday, FTX’s attorneys named 16 counts against defendants K5 Global, its founders Michael Kives and Bryan Baum, and affiliated entities.

Kives used to be a historical aide to Bill and Hillary Clinton and a neatly-connected Hollywood insider with ties to several A-listing celebrities. Along with Baum, he founded a enterprise agency known as K5 Global that got a $300 million investment from FTX’s sister company Alameda Study.

FTX alleged that a whole of $700 million used to be transferred to Kives and Baum through K5 and shell companies, with exiguous to no due diligence. The debtors are now looking out out for to claw support your whole sum, claiming that Kives and Baum aided and abetted Sam Bankman-Fried’s breach of fiduciary tasks.

In accordance with FTX, the foremost $300 million used to be transferred after Bankman-Fried attended a dinner birthday celebration at Kives’ house, where the historical FTX CEO used to be captivated by his high-profile connections.

In an interior recount two days later, Bankman-Fried described Kives as “a one-halt store for relationships” that FTX ought to restful create basically the most of. In change, Kives and Baum wished FTX to grab into consideration endorsements with their company, to work with them on Democratic politics and “Perchance us to speculate in them or some stuff, idk,” famed Bankman-Fried on the time.

Lower than three weeks later, in March 2022, $300 million used to be wired to K5 Global through Alameda Study and some other $200 million two months later. In September 2022, Alameda transferred some other $200 million to the K5 entities. All of these transactions win been allegedly constructed through shell companies SGN Albany LLC and Mount Olympus Capital.

FTX has already location in circulation several efforts to claw support funds, including $3.9 billion from Genesis, $460 million from Modulo Capital, $240 million from Embed and $500 million from Anthropic.

Alternatively, some observers famed that lots of the funds transferred to K5-connected entities win been done so earlier than the 90-day preference window, which seemingly lowers the chances of the estate efficiently clawing support funds.