One of the four silo companies that had a significant role in the demise of the FTX bitcoin exchange provided Sam Bankman-Fried, the former CEO of FTX, with a personal loan in the sum of $1 billion.
According to a legal statement issued by John Ray III, the current CEO of FTX, which was included in active Chapter 11 bankruptcy filings, more money was taken by Bankman Fried.
In accordance with the statement, Alameda Research gave Bankman-Fried a direct loan of $1 billion while also lending $543 million to FTX’s director of engineering, Nishad Singh.
The man in charge of picking up the pieces after Enron’s catastrophic fall, Ray III, was harsh in his first petition with the United States Bankruptcy Court for the District of Delaware.
He even said that the circumstance was the worst he had ever seen in his professional career, pointing out the “total breakdown of corporate controls” and a dearth of reliable financial information:
According to the study, “This scenario is unparalleled, from compromised system integrity and inadequate regulatory oversight outside to…