Prior to the main cryptocurrency exchange’s collapse in November 2022, FTX debtors have published a number of financial statements that show transactions that benefited firm leaders.Several payments, specifically those made or property transfers made within a year prior to the collapse of FTX, were disclosed in a recent court filing with the United States Bankruptcy Court for the District of Delaware. These payments directly benefited senior company executives at FTX and Alameda Research.
However, FTX debtors claim that there are no assurances as to the data’s completeness or correctness, and they disavow any responsibility for any mistakes or omissions.
Sam Trabucco, a former Alameda Research co-CEO, benefited from a $2.51 million transaction that was made from the business to the American Yacht Group in March 2022.Trabucco tweeted about his resignation in August 2022, just a few months after this purchase, confirming that he was the owner of a boat.Caroline Ellison, who served as Trabucco and Alameda’s co-CEO during that time, responded to his post with well wishes and the wish that he enjoy more time on his yacht.
Sam Bankman-Fried, Gary Wang, Nishad Singh, Darren Wong, and Constance Wang, all former FTX executives, received cash payments in the year before the company’s collapse, along with other former directors of engineering, chief marketing officers, and chief operating officers.It does point out that the disclosures only cover fiat money and how easily cryptographic transactions may be tracked. “Responses to this question do not currently include all transfers of cryptocurrency, other digital assets or other assets,” it stated.
The document also noted the $35,185,242 purchase of Robinhood shares made in April 2022 by Bankman-Fried and FTX co-founder Gary Wang.In May 2022, they invested an additional $19.45 million to continue buying Robinhood.According to the information provided, Wang owned the remaining 10% of the corporation through their company, Emergent Fidelity Technologies, while Bankman-Fried retained 90% of the shares.The shares that belonged to Bankman-Fried and Wang were, however, confiscated by the US Department of Justice in January.
According to a report dated August 31, Robinhood has bought back all the shares that FTX and Alameda Research had previously possessed.Robinhood announced in a statement that it had finished buying 55,273,469 shares for about $606 million.Jason Warnick, chief financial officer of Robinhood, stated the company’s delight with the outcome after the announcement of the purchase.
“We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders.” He said.