FTX bankruptcy more and more bizarre
Sex orgies, drugs and luxury apartments
Crypto prodigy Sam Bankman-Fried has fallen low. Details are now coming to light in the indictment that show the extent of the case.
Former crypto prodigy Sam Bankman-Fried is broke.
Sam Bankman-Fried (30), CEO of the third largest crypto exchange, lost everything within a few days. His company FTX is bankrupt. For a long time he was considered a crypto prodigy. Now he is blamed for the biggest fraud scandal in the crypto world. He is said to have robbed his customers of billions. And has put the entire crypto industry in a bad light.
Court documents show things are even worse than feared. The managers of the Bahamas-based crypto exchange FTX were enjoying themselves before the collapse – at the expense of customers. And the company was partially amateurish. There were practically no internal controls. The first class action lawsuits have already been announced.
For example comes from: With part of the money, Bankman-Fried and his friends are said to have enjoyed life in the Bahamas. Ten young people are said to have lived in a luxury apartment, taken drugs and organized orgies. Bankman-Fried is said to have paid $30 million for the accommodation, as reported by “Bild”. The team is said to have regularly consumed tranquilizers and stimulants.
Over a million victims
The cheated – including many small investors – are now defending themselves with class action lawsuits. Your chances are not bad. Because: According to the indictment, the interest-bearing cryptocurrency accounts should not have been offered in the USA due to a lack of a license.
In addition, the number of creditors who lost money after the crypto exchange went off is massively higher. Originally there was talk of 100,000 investors. According to the indictment, there should be more than a million. It is no wonder that politicians are now speaking up. The US House of Representatives is planning a hearing on the issue.
Young, inexperienced employees
The crypto exchange didn’t even have an accounting department. Unbelievable for a company that was once worth $32 billion. Young, inexperienced employees are said to have taken care of the finances. The audit of the company’s finances was carried out by a company with “offices” from the Metaverse. And: The authorities were apparently overwhelmed with the supervision of FTX.
New FTX CEO John Ray (63), who specializes in liquidations, told Bloomberg news agency: “Never in my career have I seen such a complete failure of corporate controls and such a lack of trustworthy financial information as in this case.”
Bought luxury apartments
Another allegation: FTX is said to have used company funds to buy houses for employees in the Bahamas. And has, for example, invested 121 million dollars in a luxurious holiday complex right on the sea. Other apartments were paid for with FTX funds. In the real estate register but privately registered to employees of the crypto exchange. (pbe)