Former FTX CEO Sam Bankman-Fried received a $1 billion personal loan from one of four silo companies deeply involved in the collapse of the FTX cryptocurrency exchange.
A formal declaration in ongoing Chapter 11 bankruptcy filings from FTX’s new CEO, John Ray III, has revealed further misappropriation of funds by Bankman Fried.
According to the filing, Alameda Research loaned $1 billion directly to Bankman-Fried, while FTX director of engineering Nishad Singh also received a $543 million loan from the company.
Ray III, who was responsible for picking up the pieces after the infamous collapse of Enron, was scathing in his initial filing to the United States Bankruptcy Court for the District of Delaware.
He went as far as describing the situation as the worst he’ seen in his corporate career, highlighting the “complete failure of corporate controls” and an absence of trustworthy financial information:
“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”
The Chapter 11 filing will look to implement controls on accounting, auditing, cybersecurity,…
