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.