The FTX saga keeps unraveling; new information sheds light on the failed company’s inside operation. Last week, John Ray, the new CEO of the trading venue and the person in charge of its bankruptcy process, revealed murky facts about the company.
A new report from Reuters expanded on FTX’s real-estate shopping spree. As Bitcoinist reported, the company bought millions of dollars in properties in the Bahamas. The real estate was intended to operate a residency for “key personnel.”
BTC’s price moving sideways on the 1-hour chart. Source: BTCUSDT Tradingview
FTX Goes On Shopping Spree, Who Pick Up The Tab?
Reuters discovered that FTX, the company founder Sam Bankman-Fried, his parents, and top executives bought over $120 million in real estate since 2020. Most of the company, allegedly purchased for the FTX staff, were “luxury beachfront homes.”
The report claims that the failed crypto trading venue bought seven condominiums and other properties in exclusive locations around the Bahamas. Records from this country’s Registrar General’s Department showed that FTX Property Holdings made the purchases via FTX Property Holdings.
The crypto exchange created this entity to manage the company’s real-estate acquisitions. Its president Ryan Salame signed several deals linked to luxury properties, including a $30 million penthouse at the Albany resort, one of the most exclusive areas in the Bahamas.
The company’s founder Sam Bankman-Fried often spoke about his modest lifestyle. The former FTX CEO allegedly lived in an apartment with roommates.
However, Reuters linked him to a $2 million apartment purchase for residential use. Bankman-Fried’s parents, Stanford professors Joseph Bankman and Barbara Fried, also signed on a multi-million dollar “vacation home.”
According to the report, a spokesperson representing Bankman and Fried claims the professors are trying to return the property. They are allegedly waiting on FTX and its new management to provide instructions on returning the property.
Bankman-Fried’s parents should have provided further details on the payment method for the acquisition. The FTX drama has revolved around the company misappropriating its customers’ funds to prompt up its trading arm Alameda Research. Were any of these properties purchased with users’ funds?
1 Million Creditors Left In The Dark
The new FTX CEO participated in several bankruptcy proceedings. Regardless of his experience, he was still shocked by the failed company’s lack of financial structure and reliable information. In the first statement regarding the state of the crypto exchange, Ray said:
Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised system integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperience, unsophisticated and potentially compromised individuals (…).
Per Reuters, over 1 million creditors face billions of dollars in losses, and millions of customers with funds locked or stolen from the platform after a bad actor hacked into its system. Recent events might go down in history as some of crypto’s darkest hours.
Explore the intriguing dynamics of the cryptocurrency market as we delve into the 330% surge in TROLL's value, analyzing the impact of Elon Musk's social media influence and the broader implications for investors and the crypto world
BrianExplore the dynamic world of meme cryptocurrencies with our in-depth analysis of Drake's WYNN coin, Dogecoin, and Shiba Inu. Discover how celebrity influence shapes the market and what the future holds for these digital currencies
WeiliangDive into the world of Dogwifhat, the Solana-based meme coin making waves in the crypto market with its Bybit listing and significant price surge. Explore its potential and charm in our latest blog.
MiyukiThe Avalanche-based inscription token now has over $43 million USD in market cap, and mints at more than $2 per mint.
AlexDistribution of these rewards is anticipated within 48 hours, and users will be able to monitor the allocation progress through their Enjin wallets.
AlexExplore how Riot, TeraWulf, and CleanSpark are uniquely positioned for success in the Bitcoin mining industry post-halving. This article delves into their innovative strategies, focusing on sustainability, efficiency, and the implications of Bitcoin halving for the cryptocurrency market.
BrianAccording to the Financial Times, the UN report identifies online gambling platforms, particularly those operating illicitly, as major conduits for cryptocurrency-based money laundering, with Tether being a preferred choice.
AlexExplore the groundbreaking potential of Retik Finance (RETIK) in our in-depth article. Discover how RETIK sets itself apart from Bitcoin and other cryptocurrencies with its advanced technology, enhanced security, and user-centric design. Delve into the future of digital finance with Retik Finance, poised to redefine the cryptocurrency landscape.
WeiliangExplore Larry Fink's, BlackRock CEO, insights on Bitcoin, Ethereum, and the transformative potential of ETFs and tokenization in shaping the future of finance.
MiyukiExplore the UN's latest report in this comprehensive article, revealing how USDT is central to a clandestine banking system across Southeast Asia, raising significant concerns about digital currency misuse in money laundering and organized crime.
Brian
