It was alleged that Sam Bankman-Freid, the founder of the recently bankrupt crypto exchange FTX, secretly transferred $10 billion of his customers to his own commercial firm, Alameda Research. A significant part of the money transferred is currently missing, according to sources close to the company to Reuters.
While the amount of loss varies in the claims of two different names close to the company, one source says that between 1-2 billion dollars was lost. Another source states that the amount of loss is 1.7 billion dollars.
Money not just transferred elsewhere
Under normal circumstances, even if the stock market is emptied by FTX’s transfer of its resources to another institution, money can be found at the point where the resources are transferred. There are also shortcomings in the money transferred according to the new development. The whereabouts of the money is currently unclear.
The missing money came to light after Bankman-Fried shared his financial records with other senior executives. Two people explaining the situation also state that they were on the FTX board of directors before and that this information shared is up-to-date.
Bankman-Fried, on the other hand, claimed that the $10 billion money transfer was incorrectly transferred, saying that the transfer was not made in secret, but that the statements they used could be misunderstood. “???” to the question about the lost amount. gave the answer. There is no statement from FTX and Alameda either.
Binance statement hit FTX
In a statement previously made by Binance CEO Changpeng Zhao, it was stated that the giant exchange could sell $580 million worth of FTX digital tokens “in light of new developments.” After this statement, the stock market’s users trying to withdraw their money left the stock market in a difficult situation. Unbeknownst to many FTX executives, the stock market could not survive as the resources were transferred to Alameda and eventually declared that it went bankrupt.
Researchers claimed that FTX’s legal and finance departments created a deficit, and that money could be transferred between the two firms without being caught by internal and external auditors, and Bankman-Fried opposed these claims. At this time, legal authorities are starting to examine how the firm uses both crypto activities and customer deposits. John J. Ray III was appointed as the head of the firm. Ray was also tasked with liquidating the firm’s assets after the Enron Corp bankruptcy, one of the biggest bankruptcies in history.
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