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FTX wanted to buy island of Nauru, paid themselves huge bonuses, court docs show
New court documents reveal that while Sam Bankman-Fried appeared unprepared for the fall of his FTX crypto exchange, he had other survival plans.
The filings disclose his strategy to acquire the island nation of Nauru, envisioning it as a sanctuary for himself and fellow members of the effective altruism movement in the event of a catastrophic event like a great fire or flood.
Frequently misguided and sometimes dystopian
Newly submitted court documents, filed in a federal bankruptcy court in Delaware on July 20, have brought to light a memo written by an FTX Foundation official and Gabriel Bankman-Fried, the brother of Sam Bankman-Fried
The memo laid out a visionary plan focused on the future survival of FTX and Alameda Research employees, as well as individuals affiliated with the effective altruism concept, presenting intriguing possibilities for the preservation of these groups in times to come.
A recent lawsuit has been brought forward concerning allegations against the FTX Foundation, the nonprofit arm of the cryptocurrency exchange FTX. The lawsuit claims that the foundation’s projects have been “frequently misguided and sometimes dystopian.”
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FTX’s former CEO SBF allegedly leaked ex-lover’s diary Among the contentious revelations is the existence of a memo exchanged between a foundation officer and Gabriel Bankman-Fried, the brother of FTX’s founder, Sam Bankman-Fried.
This memo outlined a startling plan to acquire the island nation of Nauru, a coral island situated in the southwestern Pacific Ocean approximately 25 miles south of the Equator.
The primary purpose behind this audacious proposal was to construct a bunker, securing the survival of members adhering to the effective altruism movement, a philosophy publicly associated with Sam Bankman-Fried. The memo intriguingly suggested that the acquisition of a sovereign country like Nauru could potentially serve other purposes as well, adding to the gravity of the allegations highlighted in the complaint.
Cha-ching
It was also revealed that Ellison, a prominent figure at FTX.com, awarded herself a staggering $22.5 million bonus in March 2022. Strikingly, this bonus coincided with her estimated $10 billion cash shortfall at the company. The lawsuit alleges that through intricate and puzzling transfers, Ellison managed to deposit the money from Alameda into her FTX account, with a substantial $10 million of these funds eventually flowing into her personal bank account.
News of another lawsuit
This news comes as part of the new lawsuit against its former CEO, Sam Bankman-Fried (SBF), along with his close associates, seeking to recoup more than $1 billion in misappropriated funds. The lawsuit alleges that Bankman-Fried and his associates displayed negligence in maintaining proper financial records, allowing unchecked transfers and expenses while concealing their illicit actions.
FTX contends that these transfers occurred during periods when the exchange and its subsidiaries were already insolvent, implying that the accused were aware of the deteriorating financial situation.
The legal battle intensifies as FTX aims to hold those responsible accountable for their alleged actions, pursuing justice for the mismanagement of funds and potential fraudulent activities.
Read more:
FTX sues Bankman-Fried and s to recover $1b