New FTX management says FTX paid $2.2 billion to Sam Bankman-Fried
- $3.2 billion was paid to Bankman-Fried and other key employees.
- Second largest beneficiary after Bankman-Fried was director of engineering Nishad Singh.
- Singh already pleaded guilty to fraud and conspiracy for his role in FTX’s collapse.
FTX filed for Chapter 11 bankruptcy in November 2022 and shortly after the new CEO John J. Ray III described the exchange’s collapse as a “complete failure of corporate controls and a complete absence of trustworthy financial information.“
Four months after filing for bankruptcy, the new FTX management has disclosed that the firm paid up to $2.2 billion to the previous CEO Sam Bankman-Fried who is currently facing charges in the US.
$3.2 billion to SBf and other key employeesCopy link to section
The new management in a press statement said that according to a Schedules of Assets and Liabilities and Statements of Financial Affairs filed on Wednesday, FTX paid a total of $3.2 billion to Bankman-Fried and other key employees.
The $3.2 billion, however, does not include the $240 million used in purchasing luxury property in the Bahamas and charitable and political donations.
Out of the money paid out to the key employees, Sam Bankman-Fried was the highest paid followed by the director of engineering Nishad Singh, who was paid about $587 million. Signh has since pleaded guilty to charges including conspiracy and fraud in his role in the FTX collapse.
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Interestingly, the payouts were mostly made from SBF-owned Alameda Research, whose financial disclosure started the financial turmoil that brought FTX tumbling in the wake of accusations that Alameda ‘secretly’ traded billions of FTX customer funds.
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