FTXRoss Rheingans-Yoo, a former employee recruited by the company’s founder, Sam Bankman-Fried, asserts his claim for a $275,000 bonus. Rheingans-Yoo’s claim comes amid FTX’s financial mismanagement and alleged fraud.
Recruitment and responsibilities at FTX
Rheingans-Yoo, previously associated with Jane Street, was brought into the FTX fold by Bankman-Fried in early 2022 to head the charitable-giving affiliate of FTX. His role involved overseeing Latona Bioscience, a nonprofit company, as part of his responsibilities. As per Rheingans-Yoo, this position was clearly outlined in a Google Doc shared by Bankman-Fried, indicating his duties and remuneration, including a base salary of $100,000.
In his court filing on November 13, Rheingans-Yoo emphasized his detachment from the core group aware of the alleged financial misappropriations at FTX. He stated, “I was not part of Bankman-Fried’s inner circle who knew about and facilitated the misappropriation of FTX customer funds,” firmly denying any knowledge of the fraud prior to the company’s collapse. His role, as per his statement, was focused on selecting and managing charitable contributions, an effort he claims to have undertaken with seriousness and dedication.
The contention over bonus and allegations
The dispute primarily revolves around the remainder of his 2022 bonus, which Rheingans-Yoo claims is owed to him by FTX. According to his court filing, FTX had paid him $375,000 two months before declaring bankruptcy but failed to complete the total promised sum of $650,000. This claim comes in the wake of allegations from FTX’s bankruptcy advisers, who in July accused Latona, the nonprofit led by Rheingans-Yoo, of being a “sham” organization involved in misappropriating over $71 million in commingled customer and corporate funds.
Rheingans-Yoo counters these allegations, asserting that Latona was a legitimate nonprofit, capitalized through intercompany loans with FTX’s trading firm, Alameda Research. His legal representatives have emphasized his commitment to the role and the legitimacy of his actions while at FTX.
The road ahead: Legal proceedings and FTX’s stance
The determination of Rheingans-Yoo’s claim for the remaining $275,000 and the so-called “foundation direction units,” which he vows to donate to charity, rests in the hands of the Delaware bankruptcy judge overseeing FTX’s Chapter 11 case. FTX advisers, in a recent court filing, have dismissed Rheingans-Yoo’s entitlement to the bonus, citing that he elected to receive part of the award through options in FTX’s corporate affiliates, a claim Rheingans-Yoo denies.
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