Founder ran FTX as “private fiefdom”; many belongings stolen or lacking, court docket hears

Then-FTX CEO Sam Bankman-Fried speaks during a Congressional hearing.

Enlarge / Then-CEO of FTX Sam Bankman-Fried speaks throughout a Home Committee on Monetary Companies listening to on December 08, 2021 in Washington, DC. (credit score: Getty Pictures | The Washington Submit)

FTX co-founder and former CEO Sam Bankman-Fried ran the failed cryptocurrency alternate as his “private fiefdom” and lots of of its belongings have disappeared, an FTX lawyer stated at a listening to in US Chapter Courtroom in Delaware on Tuesday. “A considerable quantity of belongings have both been stolen or are lacking,” stated James Bromley, a Sullivan & Cromwell accomplice who’s representing FTX, in accordance with a New York Occasions report.

“What we have now here’s a worldwide, worldwide group, however which was run as a private fiefdom of Sam Bankman-Fried,” Bromley stated, in accordance with The Wall Avenue Journal. “FTX was within the management of inexperienced and unsophisticated people, and a few or all of them had been compromised people.”

Bromley additionally instructed the court docket that “substantial quantities of cash” had been spent on gadgets unrelated to the enterprise, together with trip properties within the Bahamas, the Monetary Occasions wrote. FTX now owes its prime 50 collectors over $3.1 billion, in accordance with a chapter court docket submitting.

Learn 11 remaining paragraphs | Feedback

Leave a Reply

Your email address will not be published. Required fields are marked *