Bitcoin News and Finance
FTX Co-Founder SBF and Inner Circle Accused of Lavish Spending and Fraud in Latest Bankruptcy Report Skip to main content

FTX Co-Founder SBF and Inner Circle Accused of Lavish Spending and Fraud in Latest Bankruptcy Report

On Monday, FTX released a second investigative report accusing co-founder Sam Bankman-Fried and senior executives of commingling customer deposits and corporate funds and misusing them. The report alleges that they spent $243 million on luxury residential real estate for senior staff and family members, as well as on commercial properties.

FTX Execs Accused of $243 Million Real Estate Spending Spree, Retaliation, and Fraud

A second investigative report by FTX debtors alleges that “commingling and misuse of FTX.com customer deposits occurred for several years.” The report criticizes this fraudulent practice for making it “extraordinarily challenging” to trace the origins of specific transactions or distinguish between operating funds and customer assets.

As part of the report, it states that FTX.com owed customers $8.7 billion as of the date of the bankruptcy petition. “The image that the FTX Group sought to portray as the customer-focused leader of the digital age was a mirage,” the current FTX CEO and chief restructuring officer, John J. Ray III stated. Ray added:

From the inception of the FTX.com exchange, the FTX Group commingled customer deposits and corporate funds, and misused them with abandon at the direction and by the design of previous senior executives.

The court filing alleges that Sam Bankman-Fried (SBF), senior executives, multiple FTX-controlled entities, and Alameda Research utilized numerous bank accounts and concealed intricate transactions through an undisclosed entity. Additionally, an unidentified lawyer referred to as “Attorney-1” is implicated and accused of assisting and facilitating SBF’s alleged fraudulent activities.

The attorney purportedly instructed senior FTX officials to establish a “false and misleading corporate register of members and managers” to be submitted to an unnamed bank. According to the report, Attorney-1 purportedly assisted senior executives and SBF in devising a “sham payment agent agreement.”

The report asserts that, in collaboration with SBF, Attorney-1 conceived and coordinated the creation of counterfeit agreements. These agreements were designed to lend an air of credibility to unlawful transfers and arrangements within the FTX Group.

As a result, investigators claim that they enabled the mingling and wrongful appropriation of customer assets, along with various other forms of misconduct by the FTX Group. FTX debtors also contend there was retaliation against an FTX employee who raised concerns about commingling.

The highlighted misconduct encompasses the acquisition of approximately $243 million worth of residential and commercial properties, predominantly situated in the Bahamas. A significant portion of these funds was allocated towards the purchase of units within the Albany Charles development, a highly prestigious resort community located on New Providence Island in the Bahamas.

Albany enjoys popularity among the world’s wealthiest individuals due to its exclusivity and luxurious amenities. Allegedly, an 11,500 square-foot penthouse within the ‘Orchid Building’ was shared by SBF, Nishad Singh, Gary Wang, Caroline Ellison, and other implicated individuals.

Attorneys contend that the majority of the real estate acquisitions were conducted by the FTX Group via a subsidiary called FTX Property Holdings Ltd., which they say was registered in the Bahamas in July 2021 under the direction of Attorney-1.

The report makes an allegation that a “former Bahamian official” facilitated the process to expedite FTX Digital Markets’ licensing within a mere six weeks, with substantial funds being channeled through the Bahamian entity.

According to the document, “The FTX Group appears to have utilized the FTX DM accounts in part as an intermediary mechanism, directing at least $5.4 billion in customer deposits to FTX Trading Ltd.”

What are your thoughts on the allegations of lavish spending and fraud against FTX co-founder SBF and executives? Share your thoughts and opinions about this subject in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory