Alameda gave SBF $1 billion: FTX filed for bankruptcy

According to the statement, Alameda Research loaned $543 million to Nishad Singh, director of engineering at FTX, and provided Bankman-Fried a direct loan of $1 billion.

In his initial complaint to the United States Bankruptcy Court for the District of Delaware, Ray III, the person in charge of putting things back together following Enron's disastrous collapse, was blunt.

In fact, he claimed that the situation was the worst he had ever witnessed in his life as a specialist, citing the “complete breakdown of corporate controls” and a lack of trustworthy financial data:

Based on the study, “This scenario is unparalleled, from compromised system integrity and inadequate regulatory oversight outside to the concentration of power in the hands of a relatively small number of inexperienced, uninformed, and maybe corrupted employees.”

As part of the Chapter 11 petition, this will be asked that safeguards be put in place for the implementation of various accounting, accounting, cyberattacks, human resources, privacy laws, and other things. Four groups of companies associated with the corporate structure of FTX will apply these rules.

There were a total of four silos. The FTX Group Ray III lists four “silos,” which could be interpreted as collective nouns for various FTX Group enterprises. Businesses held by West Realm Shires Inc. are organized using the “WRS” silo. Among them are FTX US, LedgerX, FTX US Derivatives, FTX US Capital Markets, and Embed Clearing.

Despite the fact that the “Ventures” silo actually comprises Clifton Bay Investments LLC and Ltd, Island Bay Ventures Inc., and Debtor FTX Ventures Ltd., Alameda Research is identified in the complaint as a different silo with different companies. FTX Trading Ltd. and other exchanges using the FTX.com name are located in the final “Dotcom” silo.

In contrast to Singh and the former FTX chief technology officer Zixiao “Gary” Wang, according to Ray III's lawsuit, Bankman-Fried owned all of the silos. The third-party equity holders in the WRS and Dotcom silos included major banking firms, endowments, sovereign wealth funds, and individuals whose lives were profoundly impacted by the collapse of FTX.

In the case, Bankman Enterprise Fried's is also accused of a number of extra serious offenses. It was discovered that the whole FTX Group failed to preserve up-to-date records of its bank accounts, “keep centralized control” over its expenditures, and “pay insufficient attention to the creditworthiness of banking partners.”

More data is provided by Ray III, who questions the Dotcom silo's independently verified financial documents but cannot locate any independently investigated banking statements for the Alameda or Ventures silos. He asserts that the WRS silo was the only branch to have undergone a valid audit by a reputable accounting firm.

The petition claims that there were also egregious errors in how the funds were allocated.

For example, employees of FTX Set utilized an online “conversation” to request money, and a variety of supervisors responded by approving payment with various emoticons.

Ray III goes on to claim that business funds were used to purchase residences and other financial belongings for consultants and employees, as well as that there was a lack of paperwork for operations like loans. Despite the lack of evidence, Ray III asserts that this did in fact happen.

Furthermore, the company employed technology to cover up the theft of consumers' money and neglected to periodically reconcile its bitcoin holdings. This made it possible to gradually exclude some elements of FTX.com's auto-liquidation technique from Alameda.

The fact that those who have gone bankrupt have only received “a fraction of the digital assets” is perhaps the issue's most astounding aspect. Although cold wallets with a combined $740 million worth of bitcoin have been taken, it is still unknown to which silo the money belongs.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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