Michael Kives seen with Bill Clinton amid FTX’s $700M suit
Former aide to Hillary Clinton-turned-Hollywood super-agent, Michael Kives, appeared unfazed by the $700 million lawsuit filed against his firm, K5 Global, by FTX. Kives was seen in exclusive photos obtained by The Post, casually strolling through the streets of London with his former boss, former President Bill Clinton. The pair, dressed in jeans and light jackets, were accompanied by a small entourage during their walkabout, which took place on the eve of Clinton’s trip to Albania.
During their walk, Clinton, 76, was overheard discussing the war in Iraq with Kives, who served as an aide to both Bill and Hillary Clinton. Following his time in politics, Kives transitioned into the role of a Hollywood agent, establishing connections with prominent figures such as Arnold Schwarzenegger, Bruce Willis, and Katy Perry.
The Post reached out to both Kives and Bill Clinton for comment regarding the lawsuit. Kives, a major Democratic donor, is the co-founder and managing partner of investment firm K5 Global, which was sued by bankrupt crypto exchange FTX last month. According to the complaint, Kives’s firm allegedly received $700 million in misappropriated assets from FTX and its founder, Sam Bankman-Fried, in 2022, just prior to the collapse of Bankman-Fried’s empire.
In the complaint, Bankman-Fried is said to have referred to Kives as “probably the most connected person I’ve ever met” and a “one-stop shop” for influential connections in politics and Hollywood. It is alleged that Bankman-Fried provided cash to K5 Global and its co-founders, Kives and Bryan Baum, as part of his attempt to gain political influence and celebrity status. The complaint also claims that Bankman-Fried approved investments that benefited K5 Global using FTX customer funds without any benefit to the platform or its customers.
One notable example cited in the lawsuit involved a shell company controlled by Bankman-Fried, which allegedly used $214 million in FTX funds to acquire a minority stake in Kendall Jenner’s liquor brand, 818 Tequila. SEC filings indicated that the tequila brand’s assets were valued at only $2.94 million at the time. When FTX was on the verge of collapse in November, Bankman-Fried reportedly sought assistance from K5 and its leaders in securing last-minute rescue financing, but these efforts were unsuccessful.
FTX and its affiliated companies, including Bankman-Fried’s cryptocurrency hedge fund Alameda Research, ultimately had to declare bankruptcy. K5 Global has stated that the lawsuit is “without merit,” with a spokesperson explaining that they believed Bankman-Fried and Alameda Research were legitimate and that they were entering into a fair and mutually beneficial business relationship.
In December, The Post reported that Kives could face significant financial losses due to K5 Global’s dealings with Alameda Research prior to its collapse. Bankman-Fried is set to stand trial this fall on multiple federal charges related to allegations of defrauding FTX customers of billions of dollars. He has pleaded not guilty.
FAQs:
Q: Who is Michael Kives?
A: Michael Kives is a former aide to both Bill and Hillary Clinton who transitioned into the role of a Hollywood agent, representing high-profile clients.
Q: What is the $700 million lawsuit against Kives’s firm, K5 Global, about?
A: The lawsuit was filed by bankrupt crypto exchange FTX, alleging that K5 Global received $700 million in misappropriated assets from FTX and its founder, Sam Bankman-Fried, just before the collapse of Bankman-Fried’s empire.
Q: How did Bankman-Fried describe Kives in the lawsuit?
A: Bankman-Fried referred to Kives as “probably the most connected person I’ve ever met” and a “one-stop shop” for influential connections in politics and Hollywood.
Q: What actions did Bankman-Fried take that allegedly benefited K5 Global?
A: According to the lawsuit, Bankman-Fried approved investments using FTX customer funds that benefited K5 Global but provided no benefit to the platform or its customers.
Q: What is the response from K5 Global regarding the lawsuit?
A: K5 Global has stated that the lawsuit is “without merit” and that they believed their business relationship with Bankman-Fried and Alameda Research was fair and mutually beneficial.
Q: What charges does Bankman-Fried face?
A: Bankman-Fried is set to stand trial on multiple federal charges related to allegations of defrauding FTX customers of billions of dollars. He has pleaded not guilty.
Bill Clinton and Michael Kives Spotted Together Amidst FTX’s $700M Lawsuit
Former Hillary Clinton aide turned Hollywood super-agent, Michael Kives, appeared unfazed by the $700 million lawsuit filed against his firm, K5 Global, by cryptocurrency exchange FTX while spending time in London with former President Bill Clinton. Exclusive photos obtained by The Post show Kives and Clinton enjoying a leisurely stroll through the streets of the city on Monday. Dressed casually in jeans and light jackets, the pair were accompanied by a small entourage during their walkabout, which took place just before Clinton’s trip to Albania, where he was honored for his role in ending the Kosovo War in the late 1990s. Overheard conversing about the war in Iraq, Clinton and Kives, who served as an aide to both Bill and Hillary Clinton, seemed engaged in light-hearted conversation. Kives subsequently transitioned to the entertainment industry, establishing himself as a Hollywood agent and representing high-profile clients such as Arnold Schwarzenegger, Bruce Willis, and Katy Perry.
The Post reached out to Kives and Bill Clinton for comment regarding the lawsuit. Kives, a significant Democratic donor, is the co-founder and managing partner of investment firm K5 Global, which was sued by FTX in February. The complaint alleges that Kives’s firm received $700 million in misappropriated assets from FTX and its founder, Sam Bankman-Fried, in 2022, shortly before the collapse of the exchange. Bankman-Fried reportedly referred to Kives as an influential figure and a crucial source for political and Hollywood connections. The lawsuit claims that Bankman-Fried used FTX customer funds to benefit K5 Global, even though these investments provided no advantage to the exchange or its customers.
One particular allegation cited in the lawsuit involves a shell company supposedly controlled by Bankman-Fried, which used $214 million in FTX funds to acquire a minority stake in 818 Tequila, a liquor brand owned by Kendall Jenner. According to SEC filings, the tequila brand was valued at just $2.94 million at the time of the investment. When FTX faced financial turmoil in November 2022, Bankman-Fried allegedly sought assistance from K5 and its leaders, including Kives, in securing last-minute rescue financing. However, these efforts were unsuccessful, leading FTX and its affiliates, including Bankman-Fried’s cryptocurrency hedge fund Alameda Research, to eventually file for bankruptcy.
In response to the lawsuit, a spokesperson for K5 stated that it is baseless and without merit. They claimed that in mid-2022, an affiliate of Bankman-Fried and Alameda purchased a significant stake in K5’s general partnership and made a $400 million investment in certain funds managed by K5. They further emphasized that K5 believed Bankman-Fried to be entirely legitimate and that they were entering into a fair and mutually beneficial business relationship.
In December, The Post reported that Kives stood to lose hundreds of millions of dollars due to K5 Global’s dealings with Alameda Research prior to its collapse. Bankman-Fried is scheduled to face trial in the fall on federal charges related to the alleged embezzlement of billions of dollars from FTX customers. He has pleaded not guilty.