Court Records Exposes Finances Received by Former FTX Executives

The ongoing FTX bankruptcy proceedings appear to have taken a new dimension. According to recent court documents, Bankman-Fried and five former executives were reported to have taken about $3.2 billion in payments and loans from the now-defunct FTX and its subsidiaries.

The funds were discovered in FTX financial records amid an ongoing restructuring process. Recall that FTX’s new management has been seeking to claw back missing funds since the collapse of the exchange. Notably, federal prosecutors have seized approximately $700 million in assets belonging to Bankman-Fried.

According to the details in the documents, Sam Bankman-Fried received $2.2 billion at the time when he was CEO of the firm. Similarly, his inner circles namely Nishad Singh, Gary Wang, Ryan Salame, John S. Trabucco, and Caroline Ellison got $587 million, $246 million, $87 million, $25 million, and $6 million respectively.

Interestingly, these figures do not include the $240 million Bankman-Fried spent on expensive real estate, and direct contributions made to political parties and charity organizations. 

At the moment, FTX management stated that it is investigating potential legal claims against the recipients of the $3.2 billion transfers and their subsequent transferees.

FTX Executives Plead Guilty

Following Bankman-Fried’s arrest on charges of money laundering, campaign finance crime, and wire fraud, former Alameda Research CEO, Caroline Ellison, and FTX co-founder Gary Wang pleaded guilty to charges related to FTX’s demise.

As per the charges, US regulators allege that Ellison tricked the price of FTT, an exchange token produced by FTX, at the command of Bankman-Fried.

Similarly, Nishad Singh, the former Co-Lead Engineer of FTX also pleaded guilty to fraud charges brought by American authorities. As a form of restitution, Singh agreed to assist authorities in their investigations into Bankman-Fried.

Singh’s attorney stated that his client agreed to plead guilty to one count of wire fraud, conspiracy to conduct wire fraud on the exchange’s customers, and conspiracy to commit commodities fraud.