The FTX revelations just got wilder!
It's raining shoes! More have just dropped around the FTX collapse.
The company's bankruptcy filings have just been made public, and we spent our morning picking out the highlights, so you don't have to.
Here's what you need to know:
Let's set the tone right out of the gates...the new CEO had this to say:
"I have been the Chief Restructuring Officer or Chief Executive Officer in several of the largest corporate failures in history. [...] Never have I seen such a complete failure of corporate controls..."
The filing shows Alameda Research (FTX's investment arm) gave Sam Bankman-Fried (SBF) a cool $1B personal loan - though others are reporting it was actually upwards of $3B.
FTX used customer funds to buy its employees houses.
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.
Alameda Research 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.
FTX had built custom software to hide its misuse of customer funds.
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.
Crypto deposited by customers wasn't tracked by FTX, it just went into one big pot with everything else.
