New CEO of FTX has just released a declaration and it is WILD. SBF received loans from Alameda. Real estate and items for employees was purchased with FTX money. Fair value of remaining non-stablecoin crypto is $659. “Never in my career have I seen such a complete failure of corporate controls…”

Here is the Twitter Thread.

Direct link to the declaration https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf

I'll just copy paste what's in it since there's very little to add.

  • SBF to be investigated in the course of the bankruptcy
  • Sam Bankman-Fried's hedge fund lent billions to… Sam Bankman-Fried (Paper Bird is his entity), so that's at least part of the answer of where the money went
  • FTX says the “fair value” of all the crypto (non stablecoins) that FTX international holds is a mere $659! (personal note: they do have 1$ bill in stable) This was a mistake, my bad. Seems like the chart is in thousands of dollars, so they have 659,000$.
  • “The FTX Group did not maintain centralized control of its cash. Cash management procedural failures included the absence of an accurate list of bank accounts and account signatories”
  • This is mad stuff “I do not believe it appropriate for stakeholders or the Court to rely on the audited financial statements as a reliable indication” “The Debtors have been unable to prepare a complete list of who worked for the FTX Group as of the Petition Date”
  • “In the Bahamas, I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors”

*edit* Here's Hsaka on the values that were loaned out from Alameda to themselves

  • SBF: $1b
  • Nishad Singh: $540m
  • Ryan Salame: $55m

My take – IT could be FTX just used Alameda as a cover story, quite possible these guys were not doing any trading and just stealing customer funds. Having Alameda was a good cover story for them to use the money.

Also SBF is a sociopath.

New CEO of FTX has just released a declaration and it is WILD. SBF received loans from Alameda. Real estate and items for employees was purchased with FTX money. Fair value of remaining non-stablecoin crypto is $659.

42 thoughts on “New CEO of FTX has just released a declaration and it is WILD. SBF received loans from Alameda. Real estate and items for employees was purchased with FTX money. Fair value of remaining non-stablecoin crypto is $659. “Never in my career have I seen such a complete failure of corporate controls…””

  1. That clown deserves to spend rest of his life in jail along with his creature of girlfriend. Fucking psychos…

  2. He also said he was faking all of his “ethics”. I mean we caught on it, but saying it himself makes it 10x more sinister

  3. Real estate and items for employees? Wtf. Even worse than I thought how scam bankrun-fraud handled the assets

  4. > Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals. This situation is unprecedented.

    Full quote. Holy shit that is damning.

  5. > Never in my career have I seen such a complete failure of corporate control.

    Remember this is the guy who handled the Enron collapse

  6. The new CEO of FTX, who oversaw the bankruptcy of ENRON said this regarding SBF’s management: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”

    If the guy who oversaw Enron’s bankruptcy is this baffled…

  7. Wait. So Alameda was receiving loans from FTX off of customer funds. And then SBF was receiving loans from Alameda.

    This thing sounds more and more unreal by the day. It actually deserves a Netflix series at the point.

  8. >FTX says the “fair value” of all the crypto (non stablecoins) that FTX international holds is a mere $659! (personal note: they do have 1$ bill in stable)

    Disregarding the stablecoins, even my Moons are now worth more than FTX

  9. All this information might be shocking but it explains the sudden collapse very well. All these frauds were like a house of cards and it collapsed near instantly.

    It’s kinda scary the amount of shit FTX was able to pull with their customers money till now.

  10. And yet this sociopath was able to captivate the entire media-sphere masquerading as some golden boy genius. You can’t trust shit out there.

  11. I really hope there won’t be a Do Kwon part 2

    Arrest this egomaniac fool before he decides to start running…

  12. Jesus Christ, this I did not expect. This is way beyond the mismanagement I thought was happening.

  13. This is actually incredible. FTX loans Alameda money, Alameda then gives sbf money. And this is all users funds? Lmao

  14. Don’t worry folks. He said sorry and that he wants to make customers whole. /s

  15. You telling me a group of greedy, drug enthusiasts, 25 years olds can’t run a billion dollar company?

  16. „Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”

    If that comes from the guy who helped cleaning up Enron that quote hits even harder..

  17. After this mess I decided to buy my hardware wallet and move my main investment there.
    I’ll lose some interest but damn… these are criminals.

  18. The guy overseed the ENRON fiasco and it’s out here saying FTX is far worse. Not in our wildest dreams can we imagine how badly SBF and Alameda f*cked things up

  19. “The Debtors did not have the type of disbursement controls that I believe
    are appropriate for a business enterprise. For example, employees of the FTX Group submitted payment requests through an on-line ‘chat’ platform where a disparate group of supervisors approved disbursements by responding with personalized emojis.”

  20. So basically his tax law professor/psychologist father created this global web of shell companies that will take a while to unravel. I believe in Oceans 14 this will be known as a Robert Palmer.

  21. And this smarmy asshole was meeting with elected officials to draft legislation to dictate all of crypto in the US…

  22. The speed with which this guy has pulled together all of this information and got to grips with what went wrong is actually super-impressive.

  23. So essentially they treated investors funds as their own piggy bank, a total Ponzi scheme.

  24. No wonder SBF now says he regrets filing for bankruptcy! They hired the perfect guy to investigate his mess and set him up for prosecution it appears.

  25. I mean, how long did they think they could get away with it? They must of known it was crumbling down

  26. This doesn’t make their general counsel, Ryne Miller, look that good. As chief lawyer what exactly was he doing? And they also had a chief compliance officer, ex Fenwick & West partner. Bad lawyers….baaaaaaad lawyers.

  27. Where’s all the loss porn? I feel like there should be more than Celsius, Voyager, etc, but I’m not finding it. I find this very unsatisfying.

  28. Headquartering a major fintech in the Bahamas in a penthouse should have been a warning it was a ponzi tho….

  29. >Mr. Bankman-Fried often communicated by using applications that were set to auto-delete after a short period of time, and encouraged employees to do the same.

    If that’s not the sign of a legit business, I don’t know what is.

  30. Interesting how everyone here is now all like “hah, what did you expect? These are 25 yo people”. But none of these voices were here 2 months ago.

    Stop pretending you were any more wise than anyone else here. No one that was not in on this knew what was going on and that includes all of us here.

  31. From section D, 59th paragraph (idk what it’s called):

    >At this time, the Debtors have been unable to prepare a complete list of who worked for the FTX Group as of the Petition Date, or the terms of their employment.

    Dude, come the fuck on. They can’t even fucking tell who actually worked at the company

  32. I mean mans did supply her a lifetimes worth of amphetamine. She’s not totally innocent but she’s not blameless either.

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