Key Takeaways
- Over $900 million in transfers to SBF were labeled as “Cash Payment,”
- $3.5 million transfer to ex-Alameda CEO Caroline Ellison.
In a recent filing by the FTX debtors, led by CEO John Ray III, a startling revelation has come to light regarding personal cash transfers made to executives at Alameda Research, a trading firm primarily owned by former FTX CEO Sam Bankman-Fried.
The filing, which sheds new light on financial dealings within the cryptocurrency industry, discloses a series of eye-popping transactions that have raised eyebrows in the cryptocurrency community.
Among the most striking revelations is the disclosure of over $900 million in transfers labeled simply as “Cash Payment” to Sam Bankman-Fried himself. Additionally, the filing reveals cash transfers totaling $15.5 million and a single $3.5 million transfer to former Alameda CEO Caroline Ellison. These transactions underscore the complex and sometimes opaque financial maneuverings within the company.
The documents also implicate other Alameda Research staff, including co-founder Gary Wang and former engineering director Nishad Singh. Both Wang and Singh have pleaded guilty and are expected to provide testimony against Sam Bankman-Fried. Interestingly, former FTX co-CEO Ryan Salame, who is not anticipated to testify, was also mentioned in the filing, further adding to the intrigue surrounding this case.
One of the standout revelations is a substantial $2.5 million payout designated for the American Yacht Group, intended for ex-Alameda co-CEO Samuel Trabucco. Trabucco had publicly announced his resignation from the company a few months prior, citing his recent purchase of a boat. The comment made at the time by Caroline Ellison, another figure mentioned in the documents, adds an element of intrigue: “I hope he has a great time on his boat!”
These recent disclosures build upon past court filings that exposed how the now-defunct exchange systematically misled its banking partners regarding the usage of accounts. A former employee of Alameda Research revealed to the bankruptcy team that the company “made no meaningful distinction between customer funds and Alameda funds,” raising concerns about financial integrity and transparency.
This latest development also follows the Department of Justice’s recent statement, where it argued that Sam Bankman-Fried’s plan to argue that his lawyers approved alleged fraud during his time at FTX should be dismissed as “irrelevant.”
When FTX filed for bankruptcy in November 2022, it had over 100,000 creditors, assets ranging from $10 billion to $50 billion, and corresponding liabilities within the same range.
