Sam Bankman-Fried reportedly joked that his doomed hedge fund Alameda Research had lost track of $50 million in assets, telling another executive: “So goes life.
Bankman-Fried wrote in an email about the now-defunct Almeida, “Almeida is unknown” and “to be able to even partially obtain an audit is beyond the limits of any auditor,” was cited in court documents by FTX.
The crypto exchange imploded after Bankman-Fried’s rush to access client funds to cover losses suffered by Almeida. The U.S. bankruptcy court has appointed new management to the cryptocurrency platform, which filed for Chapter 11 last fall with a debtor valued at more than $32 billion.
CEO John J. New management under Ray III produced an interim report into control failures at FTX, implicating Bankman-Fried and his top lieutenants – including former director of engineering Nishad Singh and former director of Gary Wang technology – for their “bragging”. , inefficiency”, and greed.
To support the allegations, they cite several damning communications from Bankman-Fried, 30, who is currently under house arrest at her parents’ home in Palo Alto, Calif., to two law professors. Stanford University.
Bankman-Fried reportedly wrote in an email to a colleague: “I don’t mean that ‘a major accounting firm would have reservations about the audit.’We The only thing he was able to assess was his balance, not to mention something like a full transaction history.
Sam Bankman-Fried was mocked by other FTX executives over the alleged loss of millions of dollars in assets. Reuters
Bankman-Fried reportedly said, “Sometimes we find $50 million worth of assets lying around that we’ve lost track of; that’s life.”
Executives of bankrupt cryptocurrency platform FTX are reportedly joking among themselves about their habit of losing track of millions of dollars in assets, according to a report by the company.
Debtors allege FTX executives used Slack, Signal and other “informal communication methods” to “approve documents.”
Bankman-Fried and former FTX CTO Nishad Singh (pictured) have been cited in court documents for their ‘arrogance, incompetence and greed’.
According to the report, “FTX Group expenses and invoices were submitted to Slack and approved by emoji.”
According to a filing in federal bankruptcy court in Delaware, FTX was “tightly controlled by a small group of individuals who showed little interest in establishing an appropriate oversight or control framework.”
FTX executives “suppressed dissent, embezzled company and client funds, lied to third parties about their transactions, internally mocked their tendency to lose track of millions of dollars in assets …so that the business “fell as fast” as it had grown.
Gary Wang, the former chief technology officer of FTX, was also criticized in court documents.
Bankman-Fried, who pleaded not guilty to charges of money laundering, bank fraud and wire fraud, was quoted as “advising to improve or reject” the company’s “control structure”, causing serious damage to the stock exchanges. both external wrongdoers and their own misdeeds.
Debtors blame FTX for not having “sufficiently experienced and knowledgeable employees to accurately account for assets and liabilities, understand and hedge risks, or compile and validate financial reports.” “
The report alleges that FTX executives retained copies of key documents, including loan agreements, bank and brokerage account statements, and contract and account information, which were “incomplete, inaccurate, contradictory or completely missing.
According to the report, the lack of proper documentation has made it difficult for debtors to trace funds, requiring them to “build this historical data from scratch and make sense of the many inconsistencies, discrepancies and unspecified positions that result.” .
The Post sought comments from Bankman-Fried, Singh and Wang.
Singh, Wang and Caroline Ellison, Bankman-Fried’s recurring girlfriend who ran Alameda Research, have pleaded guilty and are cooperating with federal prosecutors.