Bankrupt cryptocurrency exchange FTX has transferred approximately $2.2 billion to company founder Sam Bankman-Fried (SBF) through related entities. The company’s new management said:
$3.2 billion for founders and key employees
In total, more than $3.2 billion would have been transferred through payments and loans to the company’s founders and key employees.
These payments were primarily made by the hedge fund Alameda Research, FTX indicated. It added that it made these disclosures by filing schedules and statements of financial affairs with the bankruptcy court.
The crypto exchange indicated that the transfers amounted to no more than $240 million. The money was spent, among other things, to buy luxury real estate in the Bahamas. In addition, the funds have been used for political and charitable donations made directly by the FTX debtors and substantial transfers to non-debtor units in the Bahamas and other jurisdictions.
Bankruptcy protection
FTX filed for bankruptcy protection in November. In addition, it said it could not fully refund customers who deposited money on the exchange. FTX’s new CEO, John Ray, has said his top priority is to pay back FTX’s customers.
Prosecutors have charged Bankman-Fried with stealing billions of dollars in FTX client funds to cover losses at Alameda Research. In addition, Bankman-Fried has been charged with making tens of millions of dollars in illegal political donations to buy influence in Washington, D.C.
However, he denies this and fights hard to stay out of prison. He is currently awaiting his scheduled fraud trial on October 2 this year.