FTX Sues Former Employees of Hong Kong Affiliate, Seeks $157 Million

The filing alleges Michael Burgess, Matthew Burgess, their mother Lesley Burgess, Kevin Nguyen, Darren Wong and two companies owned or controlled several firms that had accounts registered atDuring the 90 days before the Nov. 11, 2022 bankruptcy filing, known as the Preference Period, the defendants received the benefit of withdrawals that constitute preferential transfers and"are avoidable under the Bankruptcy Code," the filing said.

The filing further alleges, citing messages on communications application Slack, that Matthew Burgess enlisted other FTX employees to “push out” certain pending withdrawal requests from one of Michael Burgess' FTX US exchange accounts while misrepresenting the account as his own. The transfers were completed just hours before FTX halted withdrawals on Nov. 8, 2022. More than $123 million of the total $157.3 million were withdrawn on or after Nov. 7.

The transfers were made"with the intent to hinder, delay or defraud FTX US’s present or future creditors," the filing said. Bankman-Fried is currently in jail preparing for his trial, scheduled to start on Oct. 3. On Thursday,

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