An employee of FTX’s charity division, Ross Rheingans-Yoo, is currently embroiled in a legal battle to receive the remaining $275,000 of his 2022 salary bonus.
Rheingans-Yoo’s lawyers argue that only $375,000 out of his $650,000 bonus has been paid by FTX, claiming that the remaining funds were owed when the crypto exchange filed for bankruptcy in November 2022.
This latest development comes as a response to FTX’s objection, which was filed on October 30th.
In his response, Rheingans-Yoo shared a portion of a Google Doc created by FTX co-founder Sam Bankman-Fried, outlining his employment terms at the FTX Foundation, including a $100,000 base salary.
He stated that Bankman-Fried had informed him about this in a memo.
Rheingans-Yoo emphasized that he was not part of Bankman-Fried’s “inner circle” and had no knowledge of FTX’s alleged misappropriation of customer funds.
According to his lawyers, he was merely a loyal employee caught in a situation not of his making.
Rheingans-Yoo asserts that he is entitled to an additional $650,000 designated for charitable donations, a prepetition salary payment of approximately $5,700, and a post-petition salary of at least $62,800.
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FTX’s advisers contend that Rheingans-Yoo has already received his full bonus because he had chosen to have a portion of it repaid via options in the company’s corporate affiliates before the bankruptcy filing. However, Rheingans-Yoo disputes this claim.
The ultimate decision regarding Rheingans-Yoo’s bonus will rest with a Delaware bankruptcy judge overseeing FTX’s Chapter 11 bankruptcy proceedings.
Notably, FTX had previously sued Rheingans-Yoo’s Latona Biosciences Group, Sam Bankman-Fried, and several other defendants in July.
The lawsuit sought the return of $71.6 million in investments and donations allegedly directed to various life science companies. FTX alleges that Rheingans-Yoo and Bankman-Fried personally benefited from these transactions, while FTX and Alameda Research did not.
The crypto exchange claims that these transfers were made with the intent to hinder, delay, or defraud present or future creditors, a fact known by the FTX Foundation, Latona, and Bankman-Fried.
Rheingans-Yoo maintains that his work at Latona involved analyzing potential recipients, engaging with their founders and executives, and conducting due diligence, all with the aim of producing positive societal outcomes.
The outcome of this legal dispute will undoubtedly have significant implications for both parties involved.
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