FTX transferred $2.2 billion to Bankman-Fried via linked entities, new managers reveal

(Reuters) – Bankrupt cryptocurrency change FTX made transfers of about $2.2 billion to company founder Sam Bankman-Fried through linked entities, the corporate’s new management acknowledged.

Overall greater than $3.2 billion used to be transferred through payments and loans to company founders and key workers, FTX acknowledged in an announcement on Wednesday.

These payments had been made chiefly from Alameda Overview hedge fund, FTX acknowledged, adding that it made these disclosures by filing schedules and statements of financial affairs with the financial peril court.

The crypto change acknowledged the transfers did not encompass over $240 million spent to set luxurious property in the Bahamas, political and charitable donations made without delay by the FTX debtors, and mountainous transfers to non-debtor objects in the Bahamas and varied jurisdictions.

A lawyer for Bankman-Fried declined to direct.

FTX filed for financial peril safety in November, announcing it used to be unable to fully repay customers who had deposited funds on its change. FTX’s new CEO, John Ray, has acknowledged his top precedence used to be getting better resources to repay FTX customers.

Prosecutors possess charged Bankman-Fried, 31, with stealing billions of greenbacks in FTX customer funds to crawl losses at Alameda Overview, and making millions of greenbacks in illegal political donations to gain have an effect on in Washington, D.C.

He denies wrongdoing and is combating to pause out of penitentiary pending his scheduled Oct. 2 fraud trial.

(Reporting by Shubhendu Deshmukh in Bengaluru; Editing by Stephen Coates)

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