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FTX Bankruptcy Filing Documents Revealing $400 Mln In Frozen Cash


WOW! FTX Bankruptcy filings were just released and it's even wilder than we thought! 😮

Here's a 🧵 breaking it down in simple English:

Crypto CryptoCrash BTC SBF SBF_FTX AlamedaResearch Thread

2/10 The filing shows AlamedaResearch (FTX's investment arm) gave SamBankmanFried

(SBF) a cool 1B personal loan - though others are reporting it was actually upwards of 3B

3/10 FTX used customer funds to buy its employees houses 🏠

4/10 FTX didn't keep a running record of its bank accounts or cryptocurrency - so no one never knew how much money the company had on hand at any given time!

5/10 AlamedaResearch was exempt from liquidations on FTX's trading platform. ​ Translation: the Alameda team could make super risky trades, without the system forcing them to pay up if they got in too deep 🤯

6/10 ​ FTX had built custom software to hide its misuse of customer funds

7/10 ​ Most company decisions were made using a chat service that automatically/periodically deleted message histories, hiding the trail of mismanagement and fraud


The day FTX filed for bankruptcy, there was 400M worth of unauthorized transfers made on the platform (most likely coming from inside the company) 👎


FTX didn't keep a list of employees, or their roles

10/10 Crypto deposited by customers wasn't tracked by FTX, it just went into one big pot with everything else!

Wild Stuff!!

Special thanks to Web3Daily for the breakdown 🙌

This post is based on this twitter thread.


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