FTX used company funds to buy worker properties, new submitting reveals

Company funds had been used to buy properties within the Bahamas and “private gadgets” within the identify of staff and advisors of FTX, a chapter declaration stated, days after the penthouse house of founder Sam Bankman-Fried was listed for almost $40 million.

It isn’t instantly clear what the supply of these company funds was.

In a declaration to the court docket, newly appointed FTX CEO John Ray III stated {that a} lack of disbursement controls meant accounting for spending was performed in a manner that was not “acceptable for a enterprise enterprise.”

Company housing preparations should not uncommon, particularly in high-cost areas, however Ray’s submitting famous that “sure actual property was recorded within the private identify of those staff and advisors,” a nontypical association.

A penthouse residence in the identical personal advanced that Bankman-Fried and different FTX executives lived in was listed for just below $40 million just a few days in the past. The penthouse has been broadly reported as having belonged to the onetime billionaire and FTX founder.

In the identical submitting, Ray excoriated the previous government’s crew for a “full lack of economic controls,” saying that he didn’t have faith within the steadiness sheet statements of FTX’s firms.

Auditing for one of many FTX company verticals – what Ray known as “Silos” – was performed by Prager Metis, a agency with “which I’m not acquainted,” Ray wrote.

Bankman-Fried wasn’t instantly obtainable for remark. Prager Metis didn’t instantly reply to a request for remark.

Ray, who oversaw Enron’s chapter proceedings and restructuring, declared he had 40 years of expertise within the chapter and company area.

“The Debtors do not need an accounting division,” Ray wrote, stating he anticipated it might be “a while” earlier than dependable monetary statements might be ready.

FTX and affiliated firms, together with Alameda Analysis, Bankman-Fried’s crypto buying and selling agency, filed for Chapter 11 chapter safety earlier this month.