FTX lawyers sue SBF and other executives over the $220 million acquisition of Embed reached before bankruptcy

ChainCatcher news, FTX lawyers have sued former CEO Sam Bankman-Fried, co-founder Wang Zixiao, and former senior executive Nishad Singh over the $220 million acquisition of the liquidation platform Embed, accusing them of a lack of due diligence. Additionally, the lawyers accused FTX insiders of using misappropriated customer funds to facilitate the purchase of Embed.

According to the filed documents, FTX paid $220 million to acquire Embed through its U.S. subsidiary after allegedly conducting almost no due diligence on the platform. After FTX filed for bankruptcy, the judge overseeing the litigation approved the sale of Embed and other assets of FTX, but the highest bid for the platform was only $1 million. (source link)