Bankrupt cryptocurrency exchange FTX has filed three lawsuits against Sam Bankman-Fried, Embed's CEO, Michael Giles, and the company's shareholders, demanding over $240 million, which was spent on the acquisition of the "essentially worthless" stock trading platform.
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According to a report from Reuters, the lawsuits claim FTX former top managers made no investigation about the "bug-ridden software platform." The exchange bought Ember just a few weeks before going bankrupt in November 2022.
FTX noted in the lawsuit that the deal was "wildly inflated relative to the company’s fair value" as the highest bidder was from Giles and amounted only $1 million. The report notes FTX also paid Embed employees $70 million in retention bonuses.
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