FTX's $3 Billion Transfers Before Collapse

Overview of FTX Financial Transfers

FTX, a cryptocurrency exchange, transferred over $3 billion to its founder Sam Bankman-Fried and his inner circle prior to its collapse in November. This information was revealed through documents released by the exchange's administrators, detailing the significant financial activities leading up to the bankruptcy.

Key Financial Activities

The documents, known as Schedules of Assets and Liabilities and Statements of Financial Affairs (SOFAs), highlight $3.2 billion in payments and loans primarily from Alameda Research, FTX's hedge fund. These funds were largely distributed among the company's top executives as the firm struggled with failing cryptocurrency bets.

Fund Distribution

Sam Bankman-Fried received $2.2 billion, while other executives like Nishad Singh and Gary Wang received $587 million and $246 million, respectively. Caroline Ellison, who was positioned as CEO of Alameda, received $6 million. All these individuals, except for Bankman-Fried, have pleaded guilty to federal fraud charges and are cooperating with authorities, potentially resulting in reduced sentences.

Additional Financial Details

Beyond these transfers, FTX's new management, led by John J. Ray, disclosed $240 million spent on luxury properties in the Bahamas and significant political donations. The timing and amount of potential monetary recoveries remain uncertain.

Other Notable Transfers

The SOFAs also revealed that Sam Trabucco and Ryan Salame, two other senior executives, received $25 million and $87 million, respectively. These figures underscore the extensive financial maneuvering within FTX prior to its downfall.

This strategic overview of FTX's financial activities highlights the complex and extensive nature of the transactions that contributed to its collapse.