Bankman-Fried Received Over $2B From Alameda Research
- Bankman-Fried pleaded not guilty to 12 criminal charges.
- The $3.2 billion lent to executives does not include the $240 million spent on lavish acquisitions and donations.
A statement released on Wednesday by the new management of FTX claims that the company’s former CEO and founder, Sam Bankman-Fried, received payments and loans totaling $2.2 billion, primarily from Alameda Research, the hedge fund he headed that suffered significant losses on poor investments before misusing client deposits from FTX accounts to try to pay those losses.
Asides from Bankman-Fried, other FTX executives received payments through Alameda, including the former director of engineering, Nishad Singh, who received $587 million. Records show that co-founder Gary Wang received $246 million, while former co-CEO Ryan Salame received $87 million.
As per the records, former Alameda co-CEO John Samuel Trabucco received $25 million. Bankman-Fried’s ex-girlfriend and former CEO of Alameda, Caroline Ellison, seemed more cautious, taking only $6 million in loans and payments.
The news would come as a heavy blow to Bankan-Fried’s legal team, which has so far stood firm on the 30-year-old’s stance of innocence. The new findings also support earlier statements made by Caroline Ellison. The former Alameda executive told a judge that Alameda secretly loaned corporate executives billions of dollars. The documents, no doubt, give prosecutors a strong case against Bankman-Fried. So far, Bankman-Fried has been charged with financial crimes such as money laundering and bank fraud.
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