Sam Bankman-Fried aka SBF, the former CEO of FTX, acquired a $1 billion personal loan from Alameda Research, one of the four silo companies that played a major role in the demise of the FTX crypto exchange.
FTX’s new CEO denounces facts in his latest court filing
John Ray III, FTX’s new CEO, made a formal declaration in the continuing Chapter 11 bankruptcy filings that showed additional financial misappropriations by Bankman Fried. According to the declaration, Nishad Singh, FTX’s director of engineering, also received a $543 million loan from Alameda Research.
In his initial presentation to the U.S. Bankruptcy Court for the District of Delaware, John Ray III, the man charged with piecing together the facts after Enron’s iconic collapse, was quite abrasive. He even said it was the worst thing he had ever seen in his professional career.
U.S. House of Representatives committee to hold hearing
According to reports, a hearing on the demise of crypto-currency exchange FTX is expected to be held in December by the U.S. House of Representatives’ Financial Services Committee.
The committee’s chair and ranking member, Reps. Maxine Waters (D-Calif.) and Patrick McHenry (R-N.C.), said in a joint statement that lawmakers would be interested in learning more about the demise of FTX and its broader ramifications for the crypto-currency ecosystem.
The FTX fiasco
FTX funded Alameda Research, its trading affiliate, with billions of dollars in customer assets to finance risky trades, setting the stage for its sudden collapse. With only $1 billion in liquid assets, it was unable to close the gap and eventually had to file for bankruptcy.
However, according to recent reports, SBF is still not ready to give up as it plans to find other sources of funding in a desperate attempt to resurrect the debt-ridden crypto exchange FTX.
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