Gabegie or how the old FTX team squandered a billion dollars

The soap opera concerning the FTX exchange continues. In addition to the revelations about the mismanagement of funds from investors and depositors, we learn that the former leaders of the platform were part of a great mismanagement.

Former FTX bosses and their relatives spent lavishly!

On Friday, officials in charge of FTX’s restructuring launched a lawsuit against the former management team. They are accused in particular of having maneuvered to set up a vast fraud and carried out extravagant expenses.

We can read in the complaint that Sam Bankman-Fried, Gary Wang, Caroline Ellison, among others, made several fraudulent transfers. Funds they spent lavishly, only for their own benefit

These facts allegedly took place between February 2020 and November 2022. The accusing party indicates that these wrongdoings continued even during the height of the crisis at FTX. John Ray and his team say they want to recover more than a billion dollars in cash and stocks with this procedure.

In the details, FTX would have issued for more than 725 million dollars of shares destined for SBF. An amount that also benefited the co-founder and former technical director, Gary Wang, the director of engineering, Nishad Singh, and the former managing director of Alameda Research, Caroline Ellison. Of this envelope, Singh would have received 447.8 million dollars, in the form of a loan between him and the Group. A loan, which has never been repaid.

Former executives are accused of wasting assets on acquiring luxury properties. The source also cites political and charitable contributions. Transactions over $100 million. There is also talk of dubious investments of approximately $4.86 million spent on the purchase of real estate.

As for Joe, SBF’s father, he allegedly received $10 million from FTX accounts. Finally, Caroline Ellison, who is already collaborating with the judges, would have awarded herself a bonus of 22.5 million dollars. This, just days before the Crash of the crypto platform.

These new revelations come to provide an answer to the questions of the stakeholders on the extent of the case. The vice would tighten further if the lawyers of the accusing party were able to demonstrate the guilt of SBF and companies. The ex-boss is taking a big risk.

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