Sam Bankman-Fried Received Billions From FTX-Related Entities

Illustration of broken Bitcoin

Disgraced FTX founder Sam Bankman-Fried and other related executives received $3.2 billion in payments and loans, mainly from FTX-related crypto hedge fund Alameda Research, according to FTX’s new managers.

About $2.2 billion of that total went to Bankman-Fried himself, according to a release. Ex-FTX director of engineering Nishad Singh received the second-highest amount — $587 million. Singh already has pleaded guilty to charges including fraud and conspiracy.

The $3.2 billion does not include more than $240 million spent to purchase luxury property in the Bahamas, and make political and charitable donations as well as “substantial transfers” to subsidiaries in the Bahamas and other jurisdictions.

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“The FTX debtors are investigating causes of action against the recipients of these transfers and their subsequent transferees,” the release said.

The story so far

FTX filed for bankruptcy protection in November after it was not able to repay customers who had deposited funds on its exchange. 

FTX was the fourth-largest crypto exchange by volume when it failed, and Bankman-Fried was one of crypto’s biggest evangelists and financial backers. Through FTX Ventures and his other trading firm Alameda Research, the crypto whiz kid made hundreds of bets on the industry and the future of digital finance.

Investors in FTX included big names like Sequoia Capital, NEA, Lightspeed Venture Partners, Insight Partners, Temasek, SoftBank Vision Fund, Thoma Bravo, SoftBank Vision Fund 2 and Coinbase Ventures.

At its peak, FTX and FTX US — its U.S.-based exchange — were valued at $32 billion and $8 billion valuations, respectively.

In December, federal prosecutors charged Bankman-Fried with a slew of criminal counts after his arrest in the Bahamas — including conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations.

Bankman-Fried has denied any wrongdoing and is out on bail. His fraud trial is to start in October.

Illustration: Dom Guzman

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