Former FTX and Alameda Research executives received $3.2 billion in payments and loans from FTX-related entities, according to FTX administrators who are working to restructure the firm.
FTX, now led by CEO John Ray III, has been tracking missing funds from the exchange since its collapse. He estimates that a total of $8.9 billion is missing.
According to to FTX Debtors’ statement on March 15, financial statements it filed in bankruptcy court in Delaware show billions of dollars in loans and payments that allegedly flowed to Sam Bankman-Fried and high-ranking executives who came primarily from the Alameda Research trading house.
Sharing the just released FTX Debtors press release: https://t.co/r7PlneGSXF
— FTX (@FTX_Official) March 16, 2023
However, Bankman-Fried reportedly received the lion’s share of the $2.2 billion in funds.
Others named on the list include former FTX director Nishad Singh, FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison, among others.
It provided a rough breakdown of payments made to FTX managers as follows:
- $2.2 billion Sam Bankman-Fried
- $587 million for Nishad Singh – former director of engineering at FTX
- $246 million for Zixiao “Gary” Wang – FTX co-founder
- $87 million to Ryan Salame – former co-CEO of FTX Digital Markets (Bahamian entity of FTX)
- $25 million to John Samuel Trabucco – former co-CEO of Alameda
- up to $6 million Caroline Ellison — former CEO of Alameda
The amounts do not include more than $240 million used for various purchases such as luxury real estate in the Bahamas, donations to politicians and charitable purposes and “substantial transfers” to non-FTX subsidiaries, he noted.
FTX management said it is currently investigating its rights to take potential actions against the beneficiaries, along with their successors, and that ongoing efforts “expect to result in further identification of assets, liabilities and transfers.”
He added that he was looking for ways claw back funds from former executives, but said “the amount and timing of any cash returns cannot be predicted at this time.”
Related: Sam Bankman-Fried’s bail conditions are still too lenient, says judge
Bankman-Fried is faces 12 charges relating to conspiracy, fraud and securities fraud in connection with the alleged mishandling of funds at FTX and its affiliates. He had previously pleaded not guilty to eight similar original charges.
Ellison, Wang and Singh pleaded guilty to charges similar to those brought against Bankman-Fried and are cooperating with the investigation by federal prosecutors.
The first known instance of an executive from the FTX or Alameda assisting bodies came as Salame blew the whistle on Bahamian regulators of potential fraud perpetrated on FTX, leading them to shut down the exchange just two days later on November 11th.
