FTX Trading Ltd. is suing former FTX Chief Executive Officer Sam Bankman-Fried, and former FTX executives Zixiao "Gary" Wang, Nishad Singh and Caroline Ellison for more than $1 billion in the US Bankruptcy Court of the District of Delaware, leveling 48 collective counts dealing with the misappropriation of FTX and Alameda funds against the quartet, according to the complaint filed on Thursday.

The lawsuit states that the almost quarter of a billion dollars in luxury real estate in The Bahamas that was purchased by the group was unnecessary for the operation of the company.

FTX operated from headquarters in Nassau since 2021, before filing for bankruptcy in the US last year.

The subsequent investigations into FTX's operations led to the US leveling criminal charges against the FTX executives.

Now the global cryptocurrency powerhouse they once ran is seeking to recover what they allegedly misappropriated from the company.

"This action seeks to recover damages caused by defendants' breaches of their fiduciary duties and to avoid and recover unlawful transfers of hundreds of millions of dollars that defendants misappropriated from the estates of the above-captioned debtors and debtors-in-possession (collectively, the 'debtors' and each a 'debtor')," the court document explains.

"Defendants abused their control over the FTX Group to commit one of the largest financial frauds in history.

"Beginning shortly after the inception of the FTX Group, defendants misappropriated debtor funds on a continuous basis to finance luxury condominiums, political and 'charitable' contributions, speculative investments and other pet projects that inured to the benefit of defendants, rather than the debtor entities that paid for them."

The court documents the group's purchase of the luxury real estate in The Bahamas, decrying the purchases as immaterial to the operations of FTX.

"As has been widely reported, defendants caused the FTX Group to spend more than $243 million on real estate in The Bahamas, including multimillion-dollar luxury properties for defendants and their friends and families," the court document explains.

"Defendants funded these real estate purchases from accounts that held commingled customer and corporate funds.

"Using these commingled funds, defendants caused the FTX Group to purchase more than 30 properties, including a $30 million, six bedroom penthouse in the Albany resort community in The Bahamas in January 2022.

"The property, known as the Orchid Penthouse, was home to Bankman-Fried, Wang, Singh and Ellison prior to the FTX Group's collapse. This quarter of a billion in real estate was not necessary for the operations of the FTX Group, and conferring such largesse on defendants and their friends and families was done to the detriment of FTX Group."

The 84-page court document outlines the misdeeds of the group, as well as gives insight into the kinds of purchases done and being considered by those at FTX.

Sam Bankman-Fried is awaiting his day in court to answer to criminal charges surrounding fraud, money laundering and conspiracy in relation to FTX.

Wang, Singh and Ellison pled guilty to the charges brought against them.

Click here to read more at The Nassau Guardian