In mid-July, the FTX bankruptcy estate launched a $320 million lawsuit against the executives of subsidiary FTX Europe. Led by former Enron steward John Ray III, the debtor’s estate has been on a crusade to claw back funds for the failed crypto exchange, and FTX Europe was its latest target among a parade of other recipients of FTX capital, from politicians to hedge funds.
In the lawsuit, Ray’s team alleges that the initial acquisition of the entity that became FTX Europe was a disastrous business decision stemming from its executives’ personal ties to FTX founder Sam Bankman-Fried, as well as their false claims of regulatory connections that could catalyze overseas business.
