$700 Million Paid to Politicians and Celebs: FTX Wants It Back
• FTX’s sister firm, Alameda Research, is seeking the return of $700 million paid to influential figures.
• Filings detail the trail of money from Alameda Research to two well-connected agents.
• Lawyers argue that Bankman-Fried treated the legal entities as a slush fund.
FTX Payed $700M to Political and Celebrities
FTX’s sister firm, Alameda Research, has filed a complaint in court seeking the return of $700 million paid to political figures and celebrities. The funds were allegedly used by FTX’s former owner Sam Bankman-Fried to gain access to powerful individuals. Court filings show that money was transferred from Alameda Research to two well-connected agents with connections in politics and entertainment.
Agreement With Former Clinton Aide
According to court filings, Bankman-Fried signed an agreement with K5 Global—an advisory firm founded by Michael Kives and Bryan Baum—in February 2022. The agreement stipulated that Bankman-Fried or related entities would pay each of Kives and Baum $125 million and invest billions into K5 Global over the next three years. By September 2022, Alameda had transferred an additional $200 million dollars into entities under control of Kives and Baum, bringing total payments up to $700 million.
Michael Kives is a former Creative Artists Agency (CAA) agent and former aide to Bill and Hillary Clinton who is known for his extensive network of influential connections in both politics and entertainment. It appears that Bankman-Fried leveraged these connections for personal gain through his dealings with K5 Global.
Alameda lawyers argue that these deals did not provide equivalent value back to Alameda Research and that Kives and Baum acted with “dishonest minds” while knowingly assisting SBF in breaching his fiduciary duty towards them: “Bankman-Fried treated the legal entities that he controlled as a slush fund” they claim.
The FTX trial saga continues as players involved seek restitution for their losses due to alleged corruption at highest levels.. It seems clear now that Sam Bankman-Fried used money from Alameda Research Ltd as a way of buying influence amongst powerful politicians and celebrities through his deal with Michael Kives‘ company, K5 Global