FTX sues Sam Bankman-Fried, seeking to recoup misappropriated money

Sam Bankman-Fried and other former executives are being sued by FTX Trading over the loss of over $1 billion that was allegedly misappropriated before the company went bankrupt.

The lawsuit was filed Thursday, according to Reuters.

FTX alleges that Bankman-Fried and other former executives misused funds to purchase luxury condominiums, political contributions and "pet projects."

The cryptocurrency firm referred to the situation as "one of the largest financial frauds in history."

The fraudulent transfers allegedly occurred between February 2020 and November 2022.

Bankman-Fried has pleaded not guilty to multiple criminal charges while some other executives have pleaded guilty and are expected to cooperate with prosecutors. 

"The transfers were made when (FTX-related entities) were insolvent, and defendants knew it," FTX said.