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FTX Sent $2.2B to Sam Bankman-Fried via Alameda, Other Entities: Filing

Tim Fries

Published: March 16, 2023 10:14 pm

Bankrupt crypto exchange FTX transferred more than $3.2 billion to its executives through related entities, the company’s new management said in a press release outlining financial statements filed with the bankruptcy court. Of that figure, $2.2 billion were transferred to the FTX co-founder and former CEO, Sam Bankman-Fried.

$3.2B in Total Transferred to FTX Officers

Entities related to the collapsed FTX transferred $2.2 billion to Sam Bankman-Fried, the crypto exchange’s new management said in a bankruptcy court filing. In a statement released on March 15, FTX debtors said SBF and his five officers moved $3.2 billion to their personal accounts in payments and loans.

New FTX managers said the $3.2 billion figure did not include the roughly $240 million that the former management spent for “luxury property in the Bahamas,” “political and charitable donations,” and “substantial transfers” to non-debtor subsidiaries in the Bahamas and other jurisdictions.

“Although some of the property purchased with the proceeds of these transfers is already in the control of the FTX Debtors or governmental authorities with whom the FTX Debtors are cooperating, the amount and timing of eventual monetary recoveries cannot be predicted at this time.”

– FTX new management said in the press release.

Three FTX Executives that Pleaded Guilty Received Over $800M

According to the press release, most of the funds came from Alameda Research, FTX’s sister trading firm that had a central role in the exchange’s demise. Apart from SBF, who received the biggest portion of the funds, others that saw inflows into their personal accounts include FTX director Nishad Singh ($587m), FTX co-founder Gary Wang ($246m), FTX Digital Markets co-CEO Ryan Salame ($87m), former co-CEO of Alameda John Samuel Trabucco ($25m), and former Alameda CEO Caroline Ellison ($6m).

This shows that Singh, Wang, and Ellison – the three FTX executives who pleaded guilty after the collapse and are cooperating with prosecutors – received over $800 million, according to the press release. Upon pleading guilty to fraud charges, Ellison admitted that Alameda had had access to “an unlimited line of credit on FTX.com.”

Meanwhile, SBF pleaded “not guilty” at his first court appearance earlier this year. At the same hearing, the judge scheduled the trial date for Oct. 2. If convicted, SBF could face over 100 years in prison for architecting one of the biggest financial frauds on record.

This article originally appeared on The Tokenist