FTX Foundation Staffer Fights for $275K Bonus Promised by SBF FTX Foundation Staffer Fights for $275K Bonus Promised by SBF
An employee of FTX’s charity wing recruited by FTX co-founder Sam Bankman-Fried is striving to receive the promised $275,000, the outstanding portion of his 2022 salary bonus.
Ross Rheingans-Yoo’s lawyers argued in a Nov. 13 court filing that only $375,000 of his $650,000 bonus was disbursed by FTX, claiming that the remaining funds were owed when the crypto exchange filed for bankruptcy in November 2022.
Legal Battle and Claim
Rheingans-Yoo’s latest filing is a response to FTX’s objection filed on Oct. 30.
Employee and Employer Dispute
Rheingans-Yoo shared part of a Google Doc created by Bankman-Fried that outlined his employment terms at the FTX Foundation, offering a $100,000 base salary. He claimed Bankman-Fried informed him through a memo of his entitlement to the $650,000 bonus.
Entitlement and Allegations
Rheingans-Yoo stated he was not part of Bankman-Fried’s “inner circle” and was unaware of FTX misappropriating customer funds, emphasizing that he was an employee caught in a situation he did not create.
Disputed Salary Components
Rheingans-Yoo claims entitlement to an additional $650,000 specifically for charity donations, a prepetition salary payment of about $5,700, and a post-petition salary of at least $62,800.
Advisers representing FTX argue that Rheingans-Yoo has already been fully compensated as he chose to have part of the award repaid via options in the firm’s corporate affiliates before it filed for bankruptcy, a contention that Rheingans-Yoo refutes.
The fate of Rheingans-Yoo’s bonus will be determined by a Delaware bankruptcy judge overseeing FTX’s Chapter 11 bankruptcy. FTX had previously sued Rheingans-Yoo’s Latona Biosciences Group, Bankman-Fried, and other defendants in July, seeking the return of $71.6 million in investments and donations allegedly sent to various life science companies.
FTX claims that Rheingans-Yoo and Bankman-Fried personally benefited from the investments and donations, which FTX and Alameda Research did not, alleging that these transfers were made with the intent to hinder, delay, or defraud present or future creditors.
Loyalty and Work Impact
Rheingans-Yoo asserted that his work at Latona, involving analyzing potential recipients and conducting due diligence, would have brought positive social impact.
FTX Foundation, Latona, and Bankman-Fried.”
The legal battle between FTX and Rheingans-Yoo poses significant implications for both the cryptocurrency exchange industry and employee-employer relationships. The outcome will set a precedent for similar cases in the future, shaping the dynamics of bonus disputes and legal responsibilities in the context of corporate bankruptcies.
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