FTX debtors have recently unveiled a set of financial documents that shed light on transactions favoring company executives just before the significant downfall of the major cryptocurrency exchange in November 2022.
According to a recent submission to the United States Bankruptcy Court for the District of Delaware, a number of payments directly benefiting high-ranking executives at FTX and Alameda Research have been exposed.
These payments or transfers of assets took place within a year leading up to the FTX collapse.
It is important to note that FTX debtors have cautioned about the absolute accuracy and comprehensiveness of the data disclosed, absolving themselves of any responsibility for inaccuracies or omissions.
Among the transactions, a transaction of $2.51 million was channeled from the company to the American Yacht Group in March 2022, providing gains to former Alameda Research co-CEO Sam Trabucco.
Shortly following this transaction, Trabucco openly claimed ownership of a boat while announcing his resignation in an August 2022 tweet.
In response, Caroline Ellison, Alameda’s former co-CEO alongside Trabucco, expressed her well-wishes and anticipated Trabucco’s enjoyment of his leisure time on the boat.
Additionally, a series of cash payments were uncovered, directed to former FTX executives including Sam Bankman-Fried and Gary Wang, along with former FTX engineering director Nishad Singh, former chief marketing officer Darren Wong, and former chief operating officer Constance Wang.
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These payments occurred within a year prior to the FTX collapse.
It’s worth noting that the disclosures exclusively focus on fiat currency and the traceability of crypto transactions is limited.
The document clarifies, “Responses to this question do not currently include all transfers of cryptocurrency, other digital assets, or other assets.”
The filing also highlighted the acquisition of Robinhood shares by Bankman-Fried and FTX co-founder Gary Wang in April and May 2022, amounting to $35,185,242 and $19.45 million, respectively.
Bankman-Fried held a 90% stake, while Wang possessed the remaining 10% through their company, Emergent Fidelity Technologies.
However, the U.S. Department of Justice seized these shares from them in January.
In a recent development, Robinhood repurchased all shares previously owned by FTX and Alameda Research.
The company completed the acquisition of 55,273,469 shares for about $606 million, as announced on August 31.
Robinhood’s CFO, Jason Warnick, expressed contentment with the outcome and looked ahead to executing growth strategies for the benefit of customers and shareholders.
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