However, the demise of FTX 48 Hours left its reputation in tatters. Until the company’s downfall, Bankman-Fried was widely respected, having cultivated his image as a philanthropist and entrepreneur, drawing comparisons to the likes of Warren Buffett. The bankruptcy filing came after Ellison’s former SBF friend publicly scrambled-and failed-to raise emergency funds to plug holes in the company’s finances. “A ‘bounty’ cannot be justified given Ellison’s extensive misconduct,” said the complaint filed Thursday.Įight months after paying Ellison the principal reward, FTX has commenced voluntary Chapter 11 proceedings in the United States. It was also alleged that on separate occasions between 20, Ellison misused company funds to award herself with millions of dollars in other bonuses. In the lawsuit, the money was classified as “embezzled debtor’s money”.Įllison’s attorneys were not available for comment when contacted luck. On March 29, she allegedly transferred $10 million of that alleged “bonus” into her personal bank account, using the money to invest in an unnamed safety and research firm. The estimate, which she kept to her private notes, came just weeks after she transferred $22.5 million from Alameda into her personal FTX account via a series of transactions through other accounts. Shortly after the FTX crash, it was reported that she and the SBF knew about red flags on the cryptocurrency exchange three months before it crashed.Īccording to a new legal filing, Ellison learned of major holes in FTX’s finances eight months before the company’s cash flow problems were made public - and instead of working to fix the problem, she made a series of complex transactions to pay herself a multimillion-dollar reward.įTX’s most recent lawsuit against SBF and its senior partners - filed Thursday - alleges that as early as March 2022, Ellison estimated that FTX had a cash shortfall of more than $10 billion. In December, Ellison herself pleaded guilty to seven counts, including telephone fraud and money laundering. Legal proceedings launched in the aftermath of FTX’s downfall have accused its top executives of gross mismanagement, including founder and CEO Sam Bankman-Fried (widely known as “SBF”). Months before FTX filed for bankruptcy, it allegedly moved money between different accounts until it reached its own account.Ĭryptocurrency exchange FTX exploded spectacularly late last year, which led to the decline of Alameda Research, its trading subsidiary.Īlameda itself has been losing huge amounts of money thanks to high-stakes bets, accusing FTX of secretly redirecting its users’ funds to the sister company to help offset its losses.
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