Alameda’s quarterly financial statements have never been audited, he said. But according to financial information in the filing, Alameda made loans totaling about $3.3 billion to Mr. Bankman-Fried and an entity he controls, and about $600 million to two other FTX executives, Nishad Singh and Ryan Salame.
Since taking over last week, Mr. Ray said, his team has secured about $740 million worth of cryptocurrency belonging to various parts of FTX’s business. But he called that amount “only a fraction” of what he hopes to get back, saying the company has hired forensic analysts and blockchain experts to help locate any remaining funds. The run on FTX left the company owed an estimated $8 billion, according to people familiar with the matter.
According to Mr. Ray, the mismanagement had permeated the entire company.
Mr Ray said FTX’s human resources department was so disorganized that his team was unable to compile a full list of who worked at FTX. And he said company funds had been used to buy homes and other personal items for employees and consultants without proper documentation. Employees would submit payment requests through a chat portal, where supervisors approved payouts using “personalized emojis,” the filing said.
According to the filing, FTX had no lasting record of business decisions, in part because Mr. Bankman-Fried relied on communications platforms set to automatically delete messages after a short time and encouraged employees to use the same applications.
Mr Ray, 63, took over FTX last Friday. A veteran of several famous corporate implosions, he has a reputation as something of a turnaround artist – an executive who specializes in making the most of dire situations. Best known as CEO of Enron during its bankruptcy, he was involved in a number of other prominent corporate restructurings, earning credit for his dogged efforts to recover money for creditors.
The collapse of FTX was a shocking downfall for Mr. Bankman-Fried, who was widely regarded as one of the most trusted figures in the free-running, loosely regulated crypto industry.
Mr. Bankman-Fried was once worth a whopping $24 billion and became a frequent presence in the halls of Congress, testifying about the future of the crypto industry and trying to shape legislation for the industry. He rubbed shoulders with famous actors and athletes and once appeared on stage at a conference in the Bahamas with former President Bill Clinton and former British Prime Minister Tony Blair. He has also been a prolific and in-demand political donor, contributing more than $5 million to President Biden’s 2020 election efforts.
