Sam Bankman-Fried’s FTX Spent Round $300m Shopping for Homes within the Bahamas

• Sam Bankman-Fried ran FTX like a “private fiefdom”, a chapter lawyer stated Tuesday.
• “Substantial quantities of cash have been spent on issues not associated to the enterprise,” James Bromley stated.
• The crypto alternate spent round $300 million shopping for senior executives homes within the Bahamas, he informed a chapter courtroom.

FTX spent round $300 million shopping for homes within the Bahamas for senior executives, based on a chapter lawyer.

Sullivan & Cromwell restructuring companion James Bromley informed a US courtroom that founder Sam Bankman-Fried ran the crypto alternate like his personal “private fiefdom” and that “substantial quantities of cash have been spent on issues not associated to the enterprise”, the Financial Times reported.

“We now have witnessed some of the abrupt and tough collapses within the historical past of company America,” Bromley, a lawyer on FTX’s chapter workforce, stated.

Ongoing chapter proceedings have “allowed everybody for the primary time to see below the covers and recognise the emperor had no garments,” he added.

FTX filed for chapter final week after rival alternate Binance plunged it right into a solvency disaster by liquidating its holdings of native token FTT.

The group’s new chief government John Ray III slammed Bankman-Fried and different senior executives in a Chapter 11 submitting, the place he stated that FTX held just $659,000 worth of crypto and was audited by an accounting firm with an office in the metaverse.

A workforce of legal professionals together with Bromley at the moment are working to trace down FTX’s property to begin repaying the agency’s collectors.

Learn extra: FTX’s bankruptcy filings show the situation is much worse than anyone thought. From a million creditors to a stunning lack of oversight, here are the craziest details.