FTX inner circle helped itself to $3.2B, liquidators say

In fresh filings in the FTX bankruptcy case, the cryptocurrency-exchange-slash-hedge-fund’s liquidators say they’ve uncovered $3.2 billion (£2.6b) in payments and loans made to disgraced FTX founder Sam Bankman-Fried and his inner circle. 

The revelation can be found in the schedules of assets and liabilities and statements of financial affairs that FTX and its 101 affiliated debtors filed in court on Wednesday. 

FTX, under the control of liquidators since November, summarized its findings in a press release, adding that the $3.2 billion figure doesn’t include more than $240 million spent on luxury properties in the Bahamas, any unlawful political or charitable donations, nor any “substantial transfers to non-debtor subsidiaries in the Bahamas and other jurisdictions,” the company said.

Some of the properties purchased have been seized by FTX debtors or governments, the now-imploded crypto-exchange said, and it added it can’t predict the timing nor total amount of eventual recoveries at this point. In other words, there’s still a lot of FTX-linked assets out there that have yet to be discovered.

“Ongoing efforts by the FTX debtors are expected to result in the further identification of assets, liabilities and transfers, including a description of intercompany claims among the FTX debtors and their subsidiaries,” FTX said.

Of the $3.2 billion that was said to be distributed to SBF’s inner circle, $2.2 billion of it went directly to Bankman-Fried himself, said FTX’s latest management. Nishad Singh, former co-lead engineer at FTX, made off with $587 million, while former Alameda Research CEO Caroline Ellison

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