The bankrupt cryptocurrency exchange platform, FTX, is intensifying its efforts to recover funds. The company has filed a complaint against former members of its Hong Kong subsidiary, Salameda, alleging fraudulent withdrawals of approximately $157.3 million. At the heart of this complaint are individuals such as Michael Burgess, Matthew Burgess, Lesley Burgess, and others, all with significant ties to various companies associated with FTX.com and FTX US.
The transfers were made with the intention of hindering, delaying, or defrauding the current or future creditors of FTX.
Behind the alleged scam
According to detailed court documents, these defendants strategically withdrew assets just days before FTX declared bankruptcy. Specifically, within the three months prior to the official bankruptcy declaration on November 11, 2022, these withdrawals were reported as “preferential transfers”, questionable according to the Bankruptcy Code. The claim suggests that the defendants abused their internal connections, ensuring they were prioritized in the withdrawal queue. Slack messages allegedly showed Matthew Burgess manipulating other FTX employees to expedite certain withdrawal requests, including those of Michael Burgess, deceptively presented as his own.
