© Reuters. FILE PHOTO: Former FTX Chief Govt Sam Bankman-Fried, who faces fraud expenses over the collapse of the bankrupt cryptocurrency alternate, exits the Manhattan federal court docket in New York Metropolis, U.S. February 16, 2023. REUTERS/Eduardo Munoz
(Reuters) – Bankrupt cryptocurrency alternate FTX made transfers of about $2.2 billion to firm founder Sam Bankman-Fried by associated entities, the corporate’s new administration mentioned.
Total greater than $3.2 billion was transferred by funds and loans to firm founders and key workers, FTX mentioned in an announcement on Wednesday.
These funds had been made mainly from Alameda Analysis hedge fund, FTX mentioned, including that it made these disclosures by submitting schedules and statements of monetary affairs with the chapter court docket.
The crypto alternate mentioned the transfers didn’t embody over $240 million spent to buy luxurious property within the Bahamas, political and charitable donations made immediately 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 prospects who had deposited funds on its alternate. FTX’s new CEO, John Ray, has mentioned his high precedence was recovering belongings to repay FTX prospects.
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 hundreds of thousands of {dollars} in unlawful political donations to purchase affect in Washington, D.C.
He denies wrongdoing and is combating to remain out of jail pending his scheduled Oct. 2 fraud trial.
