FTX Transferred $2.2 Billion to Sam Bankman-Fried via Alameda Research and Related Entities, New Managers Say

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Bankrupt cryptocurrency alternate FTX made transfers of about $2.2 billion (roughly Rs. 18,200 crore) to firm founder Sam Bankman-Fried by way of associated entities, the corporate’s new administration mentioned.

General greater than $3.2 billion (roughly Rs. 26,560 crore) was transferred by way of funds and loans to firm founders and key staff, FTX mentioned in an announcement on Wednesday.

These funds have been made mainly from the Alameda Analysis hedge fund, FTX mentioned, including that it made these disclosures by submitting schedules and statements of economic affairs with the chapter courtroom.

The crypto alternate mentioned the transfers didn’t embrace over $240 million (roughly Rs. 1,990 crore) spent to buy a luxurious property within the Bahamas, political and charitable donations made straight by the FTX debtors, and substantial transfers to non-debtor items within the Bahamas and different jurisdictions.

A lawyer for Bankman-Fried declined to remark.

FTX filed for chapter safety in November, saying it was unable to fully repay clients who had deposited funds on its alternate. FTX’s new CEO, John Ray, has mentioned his prime precedence was recovering property to repay FTX clients.

Prosecutors have charged Bankman-Fried, 31, with stealing billions of {dollars} in FTX buyer funds to plug losses at Alameda Analysis, and making tens of tens of millions of {dollars} in unlawful political donations to purchase affect in Washington DC.

He denies wrongdoing and is combating to remain out of jail pending his scheduled October 2 fraud trial.

© Thomson Reuters 2023

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