A new report released in the FTX group’s bankruptcy process has provided more details about allegations of commingling and misusing customer assets by company founder Sam Bankman-Fried. The report claims that Bankman-Fried and a senior lawyer for FTX lied to banks and auditors, gave false documents, and moved the company from country to country to hide their alleged fraud. The report also states that Bankman-Fried and other senior executives funneled customer deposits through affiliated companies to mask the purpose of transactions, making it difficult to repay customers. The report highlights instances where employees lied to customers and alleges further malfeasance by an unnamed FTX lawyer, referred to as “Attorney-1.” The report also reveals that FTX moved to the Bahamas to avoid scrutiny and made significant real estate purchases using commingled customer and corporate funds. Additionally, the report claims that the FTX Foundation misused customer assets by drawing money from accounts that received customer funds.
Continue reading on Theblock.com
By
By
By
By
By