The FTX bankruptcy incident caused a major shock in the currency circle. It is estimated that at least 1 million investors are facing losses of billions of dollars. The situation is worrying. The bankruptcy court held its first hearing on November 22. James Bromley, the lawyer representing FTX, said in court that the company was like the “private territory” of founder Sam Bankman-Fried (SBF), and a large amount of assets “was either stolen or stolen. Or go missing.”
Lawyers on behalf of FTX said at the bankruptcy hearing that FTX now intends to sell the business unit that is still healthy, but since the company filed for bankruptcy protection, it has been continuously attacked by cyber hackers, so that “substantial” assets have been lost.
A lawyer also said that the company is controlled by immature and inexperienced people, and the operation method seems to be SBF’s “private territory”. It is quite an understatement to describe it as “poor management”.
FTX has also spent $300 million in funds to purchase high-level residences and holiday villas in the Bahamas, and the funds invested in real estate are even much higher than the amount previously reported by Blockers.
According to the property records of the General Registry of the Bahamas, SBF parents, FTX and company executives have purchased at least 19 properties in the Bahamas in the past two years, worth approximately US$120 million.
SBF did not immediately respond to a media request for comment, but is controlled by immature and inexperienced individuals,
Separately, Alvarez & Marsal, a consulting firm that advises FTX, filed a filing stating that as of Sunday, FTX had a cash balance of $1.24 billion, “much higher than” previous expectations, including funds in accounts related to Alameda Research. about $400 million, and $172 million for FTX Japan.
Blockbuster reported earlier that SBF had secretly transferred $10 billion of FTX’s funds to his other company, Alameda Research, and at least $1 billion of client funds disappeared without a trace.