On January 31, FTX, the bankrupt cryptocurrency exchange, announced it had settled a lawsuit filed last year against K5 Global, a venture capital firm co-founded by a former aide in Hillary Clinton's office.
The settlement sets the stage for collaboration between the parties to enhance recoveries for FTX customers and stakeholders, according to the companies.
Following the crypto exchange's collapse in November 2022, many customers were unable to access their funds, which occurred after a court approved its bankruptcy plan in October.
FTX CEO John Ray noted, "It is evident that K5 is a standout in the FTX portfolio, and the anticipated strong performance of their investments will play a critical role in the recovery efforts for our stakeholders." Ray has been leading the initiative to recover funds post-bankruptcy.
K5, co-founded by Michael Kives and Bryan Baum, has connections to Clinton's office and notable investments like Uber and Airbnb, as per the firm's website.
The lawsuit filed in June claimed that FTX alleged $700 million in investments were made with misappropriated funds by K5 entities.
Former FTX CEO Sam Bankman-Fried authorized fund transfers to K5 entities and sought rescue financing using the firm's connections before FTX's bankruptcy, as per the lawsuit.
Bankman-Fried resigned in March last year.