Sam Bankman-Fried secretly transferred $2.2bn from FTX to his personal account and five members of his inner circle took a further $1bn before the crypto exchange crashed, bankruptcy court documents claim
- He faces federal charges related to the FTX collapse, but has pleaded not guilty.
- He is being held at his parents’ home in California until his trial begins in October.
Sam Bankman-Fried secretly transferred $2.2 billion from FTX to his personal account and $1 billion to five members of his inner circle before the cryptocurrency exchange crashed, according to bankruptcy court documents.
Bankman-Fried and five of his friends transferred a total of $3.2 billion to their personal accounts as “payments and loans” using funds primarily from Alameda Research, a cryptocurrency trading hedge fund affiliated with FTX, according to the financial statements. filed with bankruptcy court in Delaware on Wednesday night, according to the financial times.
John Ray, who was appointed CEO of FTX after the Chapter 11 bankruptcy filings in November, has been in charge of locating cryptocurrency and other assets to return them to millions of FTX customers whose accounts have been frozen since bankruptcy. .
Bankman-Fried is currently facing several federal charges related to the FTX collapse, as he is accused of looting the platform for personal gain and securities fraud.
He has pleaded not guilty and is being held at his parents’ home in California until his trial begins in October.
Bankman-Fried (pictured) and five of his friends transferred a total of $3.2bn to their personal accounts as “payments and loans” using funds primarily from Alameda Research, a cryptocurrency trading hedge fund affiliated with FTX, according to financial statements filed with the Delaware bankruptcy court on Wednesday night
Three FTX insiders, Nishad Singh (left), Gary Wang (right) and Caroline Ellison, have previously pleaded guilty and are cooperating with prosecutors.
Ellison (left) is the former Alameda director who was awarded $6 million and told prosecutors she had access to “an unlimited line of credit at FTX.com.” Two other former FTX executives, Ryan Salame (right) and John Samuel Trabucco, reportedly received more than $100 million combined
Not included in the $3.2bn he is accused of seizing a $240m ‘luxury Bahamian property’, ‘charitable and political donations’ and ‘substantial transfers’ to subsidiaries, according to FTX management .
Three FTX insiders, Nishad Singh, Gary Wang and Caroline Ellison, have previously pleaded guilty and are cooperating with prosecutors.
More than $800 million was transferred, according to FTX.
Ellison is the former Alameda director who was awarded $6 million and told prosecutors she had access to “an unlimited line of credit at FTX.com,” according to the Financial Times.
Two other former FTX executives, Ryan Salame and John Samuel Trabucco, were reportedly awarded more than $100 million combined.