FTX bankruptcy court filing reveals Alameda gave $1.6B in loans to SBF, others News ▸ US ▸ FTX ▸ Bankruptcy
FTX bankruptcy court filing reveals Alameda gave $1.6B in loans to SBF, others
The new FTX CEO Ray III described the situation as a "complete failure of corporate controls and such a complete absence of trustworthy financial information."
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Updated: Sep. 19, 2023 at 5:12 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A Nov. 17 court filing from new FTX CEO officer John Ray III revealed that the former CEO of the bankrupt crypto exchange Sam Bankman-Fried got $1 billion in personal loans from Alameda Research.
The restructuring classified all the affected companies in the bankruptcy into five silos. The Alameda Silo gave several company executives over $1.6 billion in personal loans.
The filing revealed that Alameda gave a $543 million loan to FTX director of engineering Nishad Singh. The firm also gave Ryan Salame, the co-CEO of FTX, a $55 million loan.
Ray describes FTX situation as ‘unprecedented’
The new FTX CEO Ray III described the FTX situation as a “complete failure of corporate controls and such a complete absence of trustworthy financial information.”
According to him, the bankrupt exchange was an unprecedented case despite his 40 years of experience as it had “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.”
$740 million recovered
John Ray III said they have located and secured $740 million in crypto that has been sent to a cold wallet. According to Ray, this is “only a fraction” of FTX’s assets that they are working to recover.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.