Former FTX executives received $3.2 billion from affiliated companies
Former executives of bankrupt exchange FTX received $3.2 billion from affiliated companies
Managers of the exchange told the court that the funds were transferred to the top managers of the platform in the form of transfers and loans, mainly from the company Alameda
FTX Group managers allege that top managers of the exchange received $3.2 billion in payments and loans, mostly from Alameda Research, a trading affiliate of the exchange, Bloomberg reported citing court documents. $2.2 billion of those funds went to FTX founder Sam Bankman-Fried.
$587 million went to former FTX CTO Nishad Singh, $246 million to FTX co-founder Gary Wang, $87 million to former FTX Digital Markets CEO Ryan Salama, $25 million to former Alameda co-CEO Sam Trabucco, and $6 million to former Alameda CEO Caroline Allison.
The $3.2 billion amount does not include $240 million spent by former FTX executives on luxury real estate purchases in the Bahamas, political and charitable donations, and transfers to subsidiaries not included in the bankruptcy process, the documents said.
U.S. authorities allege that FTX customer funds were used by former executives of the exchange to trade at an affiliated hedge fund, Alameda, and for personal expenses. In December 2022, the SEC uncovered a scheme to embezzle client funds in a lawsuit against Gary Wang and Caroline Allison.
The regulator alleged that in the summer of 2022, Bankman-Fried funneled hundreds of millions from FTX to Alameda and then used it, among other things, for "loans"-to himself and other FTX executives.
According to FTX managers, as of early March, the shortfall in customer funds on the exchange's balance sheet is $8.8 billion, with most of the shortfall attributable to Alameda, which borrowed more than $9 billion from customer accounts before the exchange went bankrupt.
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