FTX Court Papers Expose $2.5 Million Yacht Purchase
Recent court documents filed in the U.S. Bankruptcy Court for the District of Delaware have unveiled a series of financial transactions preceding FTX's decline in November 2022, primarily benefiting influential insiders.
However, FTX debtors caution that data accuracy cannot be guaranteed, disclaiming responsibility for potential errors
In March of the previous year, Sam Trabucco, the former co-CEO of Alameda Research, benefited from a $2.51 million transfer from the company to the American Yacht Group. He publicly acknowledged yacht ownership when resigning via tweet in August 2022.
Filings also suggest that Alameda Research might have known about potential misconduct by Sam Bankman-Fried, FTX’s founder, but took no action, contributing to Alameda’s collapse and investor losses, casting a shadow on the cryptocurrency industry’s integrity.
Trabucco’s timely departure in August 2022, unrelated to allegations against the companies, preceded Alameda and FTX’s bankruptcy. He has since maintained a low profile.
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Court documents also reveal cash disbursements to former FTX executives, including Bankman-Fried, Gary Wang, Nishad Singh, Darren Wong, and Constance Wang, totaling over $3 billion within a year before the company’s collapse. Bankman-Fried received $2.2 billion, with Singh and Wang receiving $587 million and $246 million, respectively.
Bankman-Fried faces witness tampering allegations and is detained at the Metropolitan Detention Center in New York, with a trial scheduled for October 2. These developments have drawn unwelcome attention to the cryptocurrency sector’s ongoing struggle to distance itself from financial misconduct.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
