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Sam Bankman-Fried Funneled $3.2B to Self, Other Execs Via FTX

The failed crypto trading platform FTX made transfers worth an estimated $2.2bn through related entities to the firm’s founder, Sam Bankman-Fried, company executives said. Overall, over $3.2 billion was transferred via payments and loans to company founders and top employees, FTX said Wednesday.

Those payments were made mostly from the Alameda Research hedge fund, FTX said, adding it made those disclosures through filings with bankruptcy courts for financial statements and reports. The cryptocurrency exchange said that these transfers did not include more than $240 million spent on purchasing luxury properties in the Bahamas, political and charity donations made directly by the debtors of FTX, and significant transfers to non-debtor units in the Bahamas and elsewhere.

FTX filed for bankruptcy in November, saying it was unable to fully pay back customers who had placed funds with its exchange. FTXs new CEO, John Rae, has said that rehabilitating assets in order to pay off FTXs customers is his first priority.

Prosecutors charged the 31-year-old Bankman-Fried with siphoning off billions in customer funds from FTX to cover losses at Alameda Research, as well as making tens of millions in illegal political donations to buy influence in Washington, D.C. He has denied wrongdoing, and is fighting to remain out of prison until a scheduled fraud trial on Oct. 2.

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