Sam Bankman-Fried’s FTX Owes Almost $3.1 Billion to 50 Largest Creditors

Sam Bankman-Fried
Lam Yik/Bloomberg via Getty Images

FTX, the cryptocurrency exchange founded by Democrat super donor Sam Bankman-Fried that recently filed for bankruptcy, reportedly owed $3.1 billion to its 50 largest creditors.

The Guardian reports that fifty of FTX’s biggest creditors are owed $3.1 billion by the exchange, which collapsed last week, according to a court filing. The exchange said in a recent court filing that it owed $1.45 billion to its top 10 debtors, with its largest creditor owed $226 million.

Sam Bankman-Fried, founder and chief executive officer of FTX (Photographer: Jeenah Moon/Bloomberg)

According to FTX and its affiliates’ recent bankruptcy filing, one million creditors are left in the dark about how much money they’re owed because of alleged poor record-keeping. At least 101 companies around the world are part of the bankruptcy proceedings, the company said Saturday.

Concerns over FTX’s solvency sparked a surge in withdrawals, exposing that it did not have billions of dollars worth of assets as it claimed, striking a huge blow to the world’s second-largest exchange.

Breitbart News recently reported on some of the craziest revelations from the FTX bankruptcy filing. One interesting fact is that the company bought homes and “personal items” for executives.

Bankman-Fried was living in a penthouse located in a luxury resort in the Bahamas, where FTX was also based. There, corporate FTX funds “were used to purchase homes and other personal items for employees and advisors,” according to bankruptcy filings.

Ray also noted that there is no documentation for transactions and loans regarding these real estate purchases, and that they were recorded in the personal name of employees and advisors.

Bankman-Fried has since put his 12,000-square ft. penthouse in the Bahamas up for sale for nearly $40 million.

Breitbart News recently reported that in October 2018, FTX raised $420 million from a range of well-known investors in order to improve user experience, increase the firm’s reach, and establish a better relationship with regulators.

The Wall Street Journal reviewed FTX financial records and spoke with people familiar with the transaction to learn that nearly three-quarters of the money raised, $300 million, went to Sam Bankman-Fried, the founder of the exchange.

According to people familiar with the matter, Mr. Bankman-Fried’s cashout was large even by Silicon Valley startup-world standards, where such sales were historically considered unacceptable as they allowed founders to profit before investors. According to Bankman-Fried, he bought out rival Binance’s stake in FTX a few months prior to the transaction and reimbursed investors part of the money he had spent.

Read more at the Guardian here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan


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