{"id":4312,"date":"2022-11-17T16:30:44","date_gmt":"2022-11-17T16:30:44","guid":{"rendered":"https:\/\/imsfund.com\/?p=4312"},"modified":"2022-11-17T16:30:44","modified_gmt":"2022-11-17T16:30:44","slug":"ftx-used-corporate-funds-to-purchase-employee-homes-new-filing-shows","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2022\/11\/17\/ftx-used-corporate-funds-to-purchase-employee-homes-new-filing-shows\/","title":{"rendered":"FTX used corporate funds to purchase employee homes, new filing shows"},"content":{"rendered":"


\n<\/p>\n

<\/p>\n
\n
\n
\n

The logo of FTX is seen on a flag at the entrance of the FTX Arena in Miami, Florida, November 12, 2022.<\/p>\n

Marco Bello | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

Corporate funds were used to purchase homes in the Bahamas and “personal items” in the name of employees and advisors of FTX, a bankruptcy declaration said, days after the penthouse apartment of founder Sam Bankman-Fried was listed for nearly $40 million.<\/p>\n

It is not immediately clear what the source of those corporate funds was.<\/p>\n

In a declaration to the court, newly appointed FTX CEO John Ray III said that a lack of disbursement controls meant accounting for spending was done in a way that was not “appropriate for a business enterprise.”<\/p>\n

Corporate housing arrangements are not unusual, especially in high-cost areas, but Ray’s filing noted that “certain real estate was recorded in the personal name of these employees and advisors,” a nontypical arrangement.<\/p>\n

A penthouse home in the same private complex that Bankman-Fried and other FTX executives lived in was listed for just under $40 million a few days ago. The penthouse has been widely reported<\/a> as having belonged to the onetime billionaire and FTX founder.<\/p>\n

In the same filing, Ray excoriated the former executive<\/a>‘s team for a “complete lack of financial controls,” saying that he did not have confidence in the balance sheet statements of FTX’s companies.<\/p>\n

Auditing for one of the FTX corporate verticals \u2013 what Ray referred to as “Silos” \u2013 was done by Prager Metis, a firm with “which I am not familiar,” Ray wrote.<\/p>\n

Bankman-Fried wasn’t immediately available for comment. Prager Metis did not immediately respond to a request for comment.<\/p>\n

Ray, who oversaw Enron’s bankruptcy proceedings and restructuring, declared he had 40 years of experience in the bankruptcy and corporate space.<\/p>\n

“The Debtors do not have an accounting department,” Ray wrote, stating he expected it would be “some time” before reliable financial statements could be prepared.<\/p>\n

FTX and affiliated companies, including Alameda Research, Bankman-Fried’s crypto trading firm, filed for Chapter 11 bankruptcy protection<\/a> earlier this month.<\/p>\n<\/div>\n<\/div>\n


\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The logo of FTX is seen on a flag at the entrance of the FTX Arena in Miami, Florida, November 12, 2022. Marco Bello | Reuters Corporate funds were used to purchase homes in the Bahamas and “personal items” in the name of employees and advisors of FTX, a bankruptcy declaration said, days after the […]<\/p>\n","protected":false},"author":5,"featured_media":4313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107151445-16684561312022-11-12t194946z_574940533_rc2ikx93zay4_rtrmadp_0_fintech-crypto-ftx.jpeg?v=1668694084&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-4312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/4312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=4312"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/4312\/revisions"}],"predecessor-version":[{"id":4314,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/4312\/revisions\/4314"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/4313"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=4312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=4312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=4312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}