FTX Revealed To Have Used Customer Funds To Buy Employees Houses
Sam Bankman-Fried Revealed To Have Used Customer Funds To Buy FTX Employees Houses.
With the first day of FTX’s declaration with the bankruptcy court having taken place on Thursday, newly appointed CEO John Ray had revealed a number of surprising information in FTX’s bankruptcy filings.
Misuse Of Customer Funds
In these filings, it was revealed that FTX’s corporate funds had actually been used to purchase homes in the Bahamas as well as “personal items” for its employees and advisors.
CEO John Ray also revealed that the houses that had been bought were done so under the names of these employees and advisors, making it impossible to claim back because they weren’t under the name of the company.
Aside from that, there was absolutely no documentation or records made for these homes and “personal items”.
2) FTX USED CUSTOMER FUNDS TO BUY HOUSES FOR EMPLOYEES pic.twitter.com/RanTl0gyFN
— GURGAVIN (@gurgavin) November 17, 2022
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“In the Bahamas, I understand that corporate funds of the FTX group were used to purchase homes and other personal items for employees and advisors,” Ray wrote.
“I understand that there does not appear to be documentation for certain of these transactions as loans, and that certain real estate was recorded in the personal name of these employees and advisors on the records of the Bahamas.“
Other Revelations
In his filing, John Ray had also revealed a number of other things that the company had been doing, including more misuse of customer funds.
Aside from buying employees’ houses, it was revealed that FTX lent former CEO Sam Bankman-Fried more than $1 billion for his personal use.
The exchange also rarely kept proper records of any of their transactions, with Ray claiming that FTX had billions of dollars worth of investments in things other than cryptocurrencies which were never recorded or kept in any book.
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“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,” Ray wrote in the filing.
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