THE FTX FIRST DAY DECLARATION
New CEO John Ray is scathing about Sam Bankman-Fried's management.
— kadhim (＾ｰ^)ノ (@kadhim) November 17, 2022
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.