K5 Global Reaches Settlement with FTX
Deal News | Feb 12, 2025 | Orrick
K5 Global, a venture capital firm, has reached a settlement with the FTX Recovery Trust, resolving a lawsuit that began in June 2024. This agreement allows both parties to collaborate for the benefit of FTX customers and stakeholders, aiming to maximize recoveries. John J. Ray III, CEO of the FTX Recovery Trust, expressed his satisfaction with the settlement, noting the potential benefits that K5's performance can bring to the recovery process. K5's co-founders, Michael Kives and Bryan Baum, echoed appreciation for the collaboration. Orrick served as corporate counsel for K5 in this transaction, with Latham & Watkins LLP as litigation counsel. This development highlights K5 Global's pivotal role in the recovery strategy for FTX, emphasizing their investment acumen and strategic importance in the venture capital landscape.
Sectors
- Venture Capital
- Financial Services
- Legal Services
Geography
- United States – K5 Global and the legal firms involved are based in the United States. FTX also had significant operations in the U.S.
Industry
- Venture Capital – K5 Global operates in the venture capital industry, investing in various startups and supporting them through different funding stages.
- Financial Services – FTX Recovery Trust is involved in financial services as it manages asset recovery following the FTX collapse.
- Legal Services – Orrick and Latham & Watkins LLP were involved as legal advisors, providing corporate and litigation services, respectively.
Financials
- over $1 Billion – Capital deployed by K5 Global across various funding stages.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| K5 Global | Target | Company | A venture capital firm and incubation studio led by co-founders Michael Kives and Bryan Baum. |
| FTX Recovery Trust | Selling Company | Company | Entity responsible for managing the recovery of assets for FTX stakeholders. |
| John J. Ray III | CEO | Person | CEO of the FTX Recovery Trust, overseeing the asset recovery process. |
| Michael Kives | Co-founder | Person | Co-founder of K5 Global. |
| Bryan Baum | Co-founder | Person | Co-founder of K5 Global. |
| Orrick | Corporate Advisor | Company | Provided corporate counsel to K5 Global in their settlement with FTX. |
| Latham & Watkins LLP | Litigation Advisor | Company | Served as litigation counsel to K5 Global in the settlement case. |