The bankruptcy petition for FTX was made public yesterday, and it has revealed various falsehoods about Sam Bankman-Fried and his workers, demonstrating that the situation is considerably more dire than most people believe it to be.
It took almost a week to submit the first-day paperwork that outlines the company’s obligations and how it ended up in bankruptcy, which was an extremely delayed start for FTX’s bankruptcy, which began extraordinarily slowly.
When FTX’s new chief executive officer, John Ray, recounted the unparalleled disarray that prevailed at the company in court documents on November 17, it became clear why that delay had occurred.
John Ray III, has made a formal statement in the continuing Chapter 11 bankruptcy proceedings, and it has been revealed that Bankman Fried has misappropriated way more funds.
According to the bankruptcy filing, the former CEO of FTX, Sam Bankman-Fried, got a personal loan in the amount of one billion dollars from one of the four silo firms that were extensively engaged in the failure of the exchange.
There was a $1 billion loan from Alameda Research to Bankman-Fried, and a $543 million loan to Nishad Singh, director of engineering at FTX, according to the document.
The Dishonesty of Sam Bankman-Fried
The bankruptcy complaint noted that Sam Bankman-Fried claimed in 2021 that clients had $15 billion on FTX’s platform, but FTX has not validated that number.
The company did not report client deposits as assets on its balance sheet, and balance statements created under Bankman-leadership Fried’s cannot always be relied upon to be accurate.
FTX developed software with the intent of hiding their misuse of customer funds. On the day that the exchange submitted its petition for bankruptcy, there were unauthorized transfers totaling 400 million dollars.
The company, which was founded by SBF, had billions in investments other than cryptocurrencies; however, there are no books or records of any of it. Bankman-fried made all business decisions on apps that auto-deleted everything after some time. And he strongly encouraged every employee to do the same thing.