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1 year ago
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A former employee of FTX claims he is owed $275,000 of a bonus he was never paid after denying he knew anything about the massive fraud taking place at the firm.
Ross Rheingans-Yoo, a former Jane Street trader, who was recruited by Sam Bankman-Fried to join the crypto firm, says he is owed hundreds of thousands of dollars, court documents show.
In early 2022, Rheingans-Yoo was taken on by Bankman-Fried to head up FTX's charitable giving operation.
He was told he would serve as program officer of FTX Foundation and would be given a $100,000 base salary, which he acknowledges receiving. Prior to the implosion of the firm, he was reportedly paid about $375,000.
He said the terms of his employment were, at the time of his hiring, hashed-out over a Google Doc from Bankman-Fried.
Ross Rheingans-Yoo, a former FTX employee, is suing what's left of the company for hundreds of thousands of dollars in bonus payments
Rheingans-Yoo claims he was recruited to join FTX from his job at Jane Street, where Bankman-Fried formerly worked
Earlier this year, FTX's new management alleged that Rheingans-Yoo aided and abetted the firm's disgraced leader while working with FTX's charitable arm.
In a sworn statement, Rheingans-Yoo denies the accusations, saying: 'I was not part of Bankman-Fried’s inner circle who knew about and facilitated the misappropriation of FTX customer funds.
'I had no knowledge of Bankman-Fried’s fraud. I did not aid and abet his breach of fiduciary duty to the Debtors.'
The former employee has now become a part of the larger web of legal efforts undertaken by FTX's bankruptcy team to recover some $71.5million in funds they believe were taken by the exchange's charitable arm - FTX Foundation - and the nonprofit company that was run by Rheingans-Yoo called Latona Bioscience Group.
The firm's bankruptcy advisers alleged in July that Latona is a 'sham' non-profit that, along with FTX Foundation, made investments and donations to life science companies 'for Bankman-Fried's personal aggrandizement.'
Rheingans-Yoo denied the accusations that Latona wasn't real, claiming it was an organized nonprofit that was funded through intercompany loan agreements with Alameda Reserach - FTX's sister trading arm.
He said his role included researching charities that would have a positive impact on society. His attorneys say he took the role seriously and met with potential recipients.
In addition to the remainder of his bonus, Rheingans-Yoo is asking for $650,000 in what he's calling 'foundation direction units,' which he says he will donate to charity.
But FTX advisers said the petitioner's belief that he is entitled to $275,000 has 'no merit and should be denied.'
Rheingans-Yoo (pictured here in a video filmed several years ago), was hired to head up the charitable operation of FTX and choose bioscience companies to invest in
Bankman-Fried was convicted several weeks ago on seven federal counts of fraud related to the collapse of FTX and the loss of billions of dollars in customer funds
He denies having any knowledge of the fraud Bankman-Fried was perpetrating
FTX advisers claim Rheingans-Yoo was already paid his bonus because he opted to have the figure partially repaid via options in the crypto firm's corporate affiliated prior to the time it filed for bankruptcy - Rheingans-Yoo has denied the claim.
Whether Rheingans-Yoo is entitled to compensation from the failed company will be determined by the Delaware bankruptcy judge who is overseeing FTX's Chapter 11 case.
Earlier this month, Bankman-Fried - who also previously worked at Jane Street - was convicted on seven federal counts of fraud that culminated in the firm's collapse.
English (US)