Kendall Jenner’s 818 Tequila Takes Center Stage in $700 Million FTX Cryptocurrency Exchange Lawsuit

Sam Bankman-Fried, co-founder of FTX Cryptocurrency Derivatives Exchange leaves Federal Court following arraignment on additional charges on Thursday, March 30, 2023 in New York City, USA. Fried is facing 13 charges ranging from conspiracy to commit wire fraud, money laundering to fraud with additional charges of conspiracy to bribe foreign officials. (Photo by John Lamparski/NurPhoto via AP)

Nearly a year after its highly-publicized collapse, the FTX cryptocurrency exchange has been embroiled in a $700 million lawsuit that includes a former Clinton aide and Kendall Jenner’s 818 Tequila.

On Thursday, FTX filed a lawsuit against former Clinton aide Michael Kives and his investment firm K5 Global. The gist of the lawsuit contends that FTX, under former CEO Sam Bankman-Fried, fraudulently invested funds into Kives’ businesses in an attempt to secure funding and facilitate high-profile celebrity connections.

Kives has been described by the New York Times as a “super connector.” His massive array of acquaintances and business partners includes the likes of Katy Perry, Orlando Bloom, Bill Clinton, Leonardo DiCaprio, Olivia Wilde, Kris Jenner and more.

FTX, now under the leadership of John J. Ray III, is seeking recompensation for a number of poorly thought-out investments that enriched Kives and his business partners at the expense of FTX customers.

A major claim in the lawsuit alleges that a Bankman-Fried-controlled shell company invested $214 million of FTX funds to buy a stake in Kendall Jenner’s 818 Tequila. Though 818 has gone on to resounding success, the tequila company’s assets were reportedly valued at only $2.94 million at the time of the investment.

In total, the lawsuit claims that Bankman-Fried authorized the transfer of $700 million to K5 entities in 2022.

K5 denies the accusations.

“K5 was under the impression – like many others – that SBF was completely legitimate, and that they were entering into a fair, long-term, and mutually beneficial business relationship,” said spokeswoman Elizabeth Ashford in an email.

The lawsuit represents the latest development in a long-unwinding saga centered around the enigmatic Sam Bankman-Fried (often shortened to SBF). Bankman-Fried has pled not guilty to all charges alleging the defrauding of FTX customers and is currently living with his parents in Palo Alto, California after posting $250 million bond.

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