FTX Investigates $6.5 Million Payments to Center for AI Safety Amid Bankruptcy Battle

Crypto exchange FTX, currently navigating bankruptcy proceedings, is delving into $6.5 million in payments made to the Center for AI Safety (CAIS) in the months leading up to its collapse. The exchange, seeking to recover funds for creditors and customers affected by its downfall in November 2022, has filed a request in the Delaware Bankruptcy Court to issue subpoenas to CAIS.

FTX’s legal team, as detailed in an October 25 filing, disclosed that the exchange had provided $6.5 million to CAIS between May and September 2022, just before declaring bankruptcy. The court filing outlines FTX’s intention to demand information from CAIS, including details on payments received, funds handled, communications exchanged, and any agreements or contracts with FTX, its affiliates, and former executives.

According to FTX, attempts to obtain an accounting related to the transfers through voluntary means were met with resistance from CAIS. The filing states that the two entities engaged in discussions, including a phone call in August and email exchanges in early October. FTX’s move to issue subpoenas reflects a more forceful approach to gather necessary information as part of its efforts to repay creditors and customers entangled in the aftermath of its collapse.

As of now, CAIS has not responded to requests for comment on the matter.

FTX’s broader objective, outlined in a June report, is to recover a total of $7 billion, with an additional $1.7 billion required to cover allegedly misappropriated customer funds. The investigation into payments to CAIS is one of several steps taken by FTX in its clawback crusade to secure resources for addressing financial obligations stemming from the tumultuous events leading to the exchange’s bankruptcy in 2022.

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Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

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