Ross Rheingans-Yoo, an employee of the FTX Foundation, who was recruited by FTX co-founder Sam Bankman-Fried, is trying to collect $275,000 in unpaid salary bonuses and claims he was not involved in Sam Bankman-Fried’s inner circle and knew nothing about the alleged fraud at FTX.
In a Nov. 13 court filing, Ross Rheingans-Yoo’s lawyers argued that only $375,000 of his $650,000 bonus was paid by FTX. His lawyer claims that when the crypto exchange filed for bankruptcy in November 2022, the remaining funds were owed.
Rheingans-Yoo filed a response to FTX’s objection on Oct. 30, sharing part of a Google Doc created by Bankman-Fried that outlined Rheingans-Yoo’s employment terms. The document included a $100,000 base salary and a promise of a $275,000 salary bonus. Rheingans-Yoo claims Bankman-Fried told him in a memo that he could receive the bonus at the end of 2022.
Rheingans-Yoo’s lawyers have clarified that he was not part of Bankman-Fried’s “inner circle” and had no knowledge of the alleged misappropriation of customer funds. They assert that Rheingans-Yoo, a loyal employee, found himself entangled in the aftermath of the FTX collapse without any fault of his own.
Rheingans-Yoo is claiming a sum of $650,000, which he intends to donate to charity, as well as a pre-bankruptcy salary payment of approximately $5,700, and a post-bankruptcy salary of at least $62,800.
FTX’s advisors contend that Rheingans-Yoo has already received his full bonus, as he chose to receive a portion of it in options from FTX’s corporate affiliates before the bankruptcy filing. However, Rheingans-Yoo disputes this assertion. Ultimately, a Delaware bankruptcy judge will determine the fate of Rheingans-Yoo’s bonus and other outstanding claims.
In July 2022, FTX initiated a lawsuit against Rheingans-Yoo’s Latona Biosciences Group, Bankman-Fried, and several other defendants, seeking the return of $71.6 million in investments and donations that were allegedly directed towards various life science companies.
According to the lawsuit, FTX alleges that Rheingans-Yoo and Bankman-Fried personally profited from the investments and donations made by FTX and Alameda Research, but the companies themselves did not.
Rheingans-Yoo has stated that his work with Latona was intended to produce “positive results for society” by analyzing potential recipients, speaking with their founders and executives, and conducting due diligence.
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