Court filings reveal SBF's inner circle collected $3.2 billion, primarily from Alameda

By: Dickson Arinze

Court filings reveal SBF's inner circle collected $3.2 billion, primarily from Alameda

March 16, 2023 7:22 AM

In the billions, Sam Bankman-Fried and five other ex-FTX and Alameda Research executives received loans and payments from FTX businesses.


According to the FTX administrators in charge of the firm's restructuring, former FTX, and Alameda Research, executives got $3.2 billion in payments and loans from FTX-linked firms.


FTX, now led by CEO John Ray III, has been tracking lost monies from the exchange since its demise, estimating a total of $8.9 billion.


According to a March 15 statement from FTX Debtors, financial papers submitted in the Delaware Bankruptcy Court show billions of dollars in loans and payments to Sam Bankman-Fried and other high-ranking employees, primarily from trading firm Alameda Research.

 


Bankman-Fried, on the other hand, is said to have received the lion's share of the funds, totaling $2.2 billion.

 

The list also includes Nishad Singh, a former FTX director; Gary Wang, a former FTX co-founder, and Caroline Ellison, a former CEO of Alameda Research.


It offered the following general breakdown of payments paid to FTX executives:

  • 2.2 billion dollars to Sam Bankman-Fried
  • Nishad Singh, the former FTX director of engineering, received $587 million.
  • $246 million to FTX founders Zixiao "Gary" Wang
  • Ryan Salame got $87 million as the former co-CEO of FTX Digital Markets, which is FTX's Bahamian branch.
  • $25 million to John Samuel Trabucco, Alameda's former co-CEO.
  • Caroline Ellison, the former CEO of Alameda, received $6 million.

The figures exclude more than $240 million in acquisitions, such as luxury residences in the Bahamas, gifts to political and charitable causes, and "significant transfers" to non-FTX entities, according to the report.


FTX's management stated that it is presently evaluating its legal options for pursuing potential legal action against the beneficiaries and subsequent transferees and that such investigations are "anticipated to result in the further identification of assets, liabilities, and transfers."


It also stated that it is investigating ways to recoup the monies from the former executives, but that the "amount and timing of any monetary recoveries cannot be estimated at this time."


Bankman-Fried is charged with 12 counts of conspiracy, wire, and securities fraud in connection with the alleged mismanagement of funds at FTX and its affiliates. He earlier pleaded not guilty to eight initial allegations of the same nature.


Ellison, Wang, and Singh have pleaded guilty to allegations similar to those made against Bankman-Fried and are cooperating with federal prosecutors' investigations.


The first recorded incident involving an executive from FTX or Alameda supporting authorities occurred when Salame alerted Bahamian regulators to possible fraud at FTX, prompting the exchange to close two days later on November 11.