Sam Bankman-Fried stole at least $300 million from his collapsed cryptocurrency exchange, FTX, and doubts abound as to whether there is more alleged looting to be unearthed and whether any of it will ever be repaid.
Joseph Bankman is an expert on tax law at Stanford University.
While Bankman-Fried, 30, has developed an image of a scruffy do-gooder, bankruptcy filings reveal that FTX obtained $421 million from investors, only for him to siphon out $300 million — part of which was used to purchase a $16.4 million holiday property in the Bahamas for his parents.
According to The Wall Street Journal, Bankman-Fried told investors at the time that the cash-out was a partial refund of funds used to acquire Binance’s interest in FTX a few months previously.
Joseph Bankman and Barbara Fried, both law professors at Stanford University, were identified as the owners of a $16.4 million oceanfront holiday house in the Old Fort Bay district of the Bahamas, according to property documents from the island country reported by Reuters.
Sam Bankman-Fried’s parents are signatories to a $16.4 million home in the Bahamas, according to property records.
According to a spokesman, Bankman-parents Fried’s were in the process of returning the residence to FTX.
Joseph Bankman is a tax law specialist at the University of Stanford.
Since before the bankruptcy proceedings, Mr. Bankman and Ms.
John J. Ray, the new CEO of FTX, stated in a court statement last week that “just a percentage” of the company’s digital assets have been discovered and protected. Ray has also alleged that Bankman-Fried collaborated with Bahamian officials to “undermine” the US bankruptcy proceedings and transfer assets abroad.
Sam Bankman-Fried with Gisele Bundchen.
According to a court filing, the corporation owes more than $3 billion to investors and creditors, who potentially number more than 1 million throughout the company’s numerous global organizations. The question now is whether consumers and creditors may recover part of their money from the corporation, which reportedly has $1.24 billion in cash on hand.
The Post quoted Derek Jacques, a bankruptcy attorney with the Mitten Law Firm in Detroit, as saying, “It will certainly take some time, but eventually, many will reclaim their monies.” This is assuming that no criminal sanctions be imposed, which in this situation remains a strong possibility.
In October of last year, when the business was valued at about $25 billion, prominent venture capital companies like as Temasek and Tiger Global provided funding to FTX.
Joseph Bankman and Barbara Fried, both Stanford University law professors, were listed as the owners of a $16.4 million beachfront vacation home in the Bahamas.
These companies, together with Sequoia and the Ontario Teachers’ Pension Plan, invested a total of $1.8 billion in FTX. The crypto-focused investment firm Paradigm spent $215 million in FTX, the highest investment by any organisation.
Max Galka, the founder and chief executive officer of Elementus, who has direct experience with crypto bankruptcy processes, stated that the courts will need to establish the worth of FTX’s assets.
According to property documents, Sam Bankman-parents Fried’s are signatories to a $16.4 million mansion in the Bahamas.
“FTX continues to possess a substantial quantity of crypto assets that are visible on the blockchain,” Galka told The Post. In addition, they were involved in a huge number of commercial activities and had made several purchases of major crypto enterprises in a wide range of industries.
“Unlike some of the other crypto bankruptcies that have occurred in the past year, FTX has a substantial amount of assets that will allow creditors to recoup a portion of their funds,” he added.
LedgerX, an FTX subsidiary that offers crypt derivatives, is one of these assets. LedgerX, unlike its parent company, has “solvent balance sheets, responsible management, and valuable franchises,” according to its new CEO Ray, who assumed control after the company was placed in Chapter 11.
Approximately one-fourth, or $303 million, of FTX’s $1.24 billion in cash is held by LedgerX, according to The Information.
Court documents disclosed during bankruptcy proceedings in Delaware and property records discovered in the Bahamas indicate that Bankman-Fried used the company as his personal piggy bank.
Barbara Fried is politically active within the Democratic Party.
The vacation home in Old Fort Bay is part of FTX’s extensive real estate spending spree. In the past two years, FTX spent approximately $121 million on at least 19 homes in the Bahamas, according to property records.
The company spent $72 million on condominium apartments at an exclusive beachfront resort in Albany, in addition to $30 million on a penthouse apartment for Bankman-Fried.
According to records, FTX also purchased three apartments in the Bahamas for between $950,000 and $2,000,000 each.
Joseph Bankman and Barbara Fried, both law professors at Stanford University, were listed as the owners of a beachfront vacation home in the Bahamas for $16.4 million.
FTX filed for bankruptcy protection earlier this month after it was discovered that it used customer funds to cover risky bets made by Bankman-Fried’s other company, Alameda Research.
»At least $300 million was stolen from FTX, and it is unknown if the money will be repaid«