BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Business

Alameda Research Loaned SBF Himself a Staggering $1 Billion

BlockNews Team by BlockNews Team
November 21, 2022
in Business, Media, Social
Reading Time: 4 mins read
A A
alameda research
1
SHARES
15
VIEWS
Share on TwitterShare on Reddit

Alameda Research had loaned Sam Bankman-Fried (SBF) a staggering $1 billion, according to a Thursday revelation by new FTX CEO John Ray III.

You might also like

Binance Space ID Tokens Launchpad Secures BNB Commitments Worth $2.8 Billion

Coinbase Argues Software Services Are Not Securities: A Case Against the SEC

Nigeria Now Enabled to Make Direct Crypto Purchases Through MetaMask

In a stunning filing by Ray on Thursday, November 17, the new FTX CEO stated that the fallen company’s bankruptcy situation was a consequence of, among others, billions of dollars in customer funds lent to Alameda Research. Among these loans, a staggering $1 billion was made to SBF himself. 

The drama commenced last week after SBF told investors that FTX was experiencing a shortfall of up to $8 billion from withdrawal requests and was in urgent need of funding. Events following the disclosure led to a bankruptcy filing in Delaware and SBF announcing his exit from the CEO office and saying that Alameda Research would be closing down. 

In the bombshell filing, Ray reveals other wild and shocking discoveries, including FTX corporate funds used to buy personal homes, audit opinions conducted from the metaverse, and that most of the company’s digital assets have not been secured, among others.  

Revelations by New FTX CEO 

In the stunning filing, Ray burst open the firm’s corporate governance under Sam Bankman-Fried as the worst he’s ever seen. He stated, “Never in my career have I seen such a complete failure of corporate controls and a complete absence of trustworthy financial Information as occurred here. Citing the lack of proper checks and balances, Ray added:

 “…funds were used to buy homes and other personal items for employees and advisors. Some of these money transfers were not documented as company loans, while the homes were registered under the names of the employees.”

According to Ray, Alameda Research had made $4.1 billion of related-party loans, which were still outstanding by the end of September 2022. Of the total, $1 billion went to SBF as a personal loan, while $2.3 billion went to Paper Bird, an SBF-controlled entity, where he owns 75% and Gary Wang 25%). This translates to approximately $1.73 billion at SBF’s disposal. Director of engineering at FTX Nishad Singh also got a loan amounting to $543 million. Co-CEO of FTX’s Digital Markets arm Ryan Salame got $55 million in the form of a personal loan. 

Speculations on where SBF took all the money point to two possible injections- political donations and personal investments. Amid the U.S. 2022 midterms, SBF contributed up to $40 million to political causes, making him the second-largest donor to Democratic movements. Singh followed suit, chipping in $7.4 million to several left-leaning super PACs, while Salame made a $23.9 million contribution in support of Republicans. 

In May, SBF said he spent $648 million to acquire a 7.6% stake in the no-fee stock trading app Robinhood. Moreover, the ex-FTX boss also revealed investments made through FTX Ventures totaling at least $500 million in venture capital firms, including one of FTX’s most prominent supporters, Sequoia Capital, and additional investments at Altimeter Capital Management and Multicoin Capital (amount not disclosed). The Information also reports SBF entities invested $200 million in Sequoia Capital, including $100 million to its wealth management fund, Sequoia Heritage. SBF also injected another $300 million into a Michael Kives’ fund, K5 Global. 

Following The Money

Supposing all of his other investments were funded with loans from Alameda Research, there still needs to be $2.9 billion. Moreover, from the total, almost $1.5 billion is still unaccounted for from SBF’s cumulative loans and is certainly not attached to his Bahamas-based mansions as the filing notes he footed the bill for these. 

In a leaked Twitter direct message with a Vox reporter, it was reported that FTX had moved billions of dollars of customer funds to Alameda. Consequently, customers wonder whether SBF’s assets and investments were financed with loans from Alameda that were funded by FTX customer deposits. 

Shockingly, Sam Bankman-Fried has since put his Bahamas-based 12,000 sq. ft. penthouse for sale at an asking price of almost $40 million. 

According to Bloomberg calculations, from an estimated net worth of $16 billion last week, the disgraced FTX founder is now totally broke, which is “one of history’s greatest destructions of wealth ever!”

Rumor has it that SBF and his borrowing counterparts may have squirreled away some assets in readiness for a ‘rainy day.’ 

Tags: AlamedaBusinessFTXSBF
TweetShareShare

Recommended For You

Binance Space ID Tokens Launchpad Secures BNB Commitments Worth $2.8 Billion

by BlockNews Team
March 24, 2023
0
space ID logo

More than 8.4 million BNB tokens were for up for the Space ID token sale Space ID earned $2.85 billion within 48 hours Final allocation will be based...

Read more

Coinbase Argues Software Services Are Not Securities: A Case Against the SEC

by BlockNews Team
March 24, 2023
0
coinbase

Coinbase CLO Paul Grewal announced that the company provided details to the SEC about why staking services are not securities Grewal saw the SEC’s perspective on software services...

Read more

Nigeria Now Enabled to Make Direct Crypto Purchases Through MetaMask

by BlockNews Team
March 24, 2023
0
metamask

Nigerians can now buy crypto using MetaMask instead of centralized exchanges Crypto fintech MoonPay merged with ConsenSys to allow users to buy cryptocurrencies through direct bank transfers Nigeria...

Read more

FTX Is Looking To Recover $460M From A Venture Capital Supported By Bankman-Fried’s Alameda Research

by BlockNews Team
March 24, 2023
0
ftx

FTX files for return of $460 million investment funds made to venture capital firm by Sam Bankman-Fried through Alameda Research. When he invested, Sam Bankman-Fried was allegedly in...

Read more

OpenZeppelin Reveals Top 10 Blockchain Hacking Techniques in 2022

by BlockNews Team
March 23, 2023
0
OpenZeppelin

OpenZeppelin's top 10 hacking methods of 2022 serve as a sobering reminder of the value of cybersecurity and the need for ongoing research to make blockchain systems more...

Read more
Next Post
custodial wallets crypto

Why Custodial Wallets Are the Best Low-Entry Barrier for Novice NFT's Investors

Related News

Binance Logo

Binance US To Acquire Voyager Digital’s Assets And Take Over FTX

December 22, 2022
opensea

NFT Collector Sues OpenSea for Locking Account after being Scammed

January 27, 2023
Robinhood Proposes Web3 Wallet without Swap Fees

Robinhood Proposes Web3 Wallet without Swap Fees

June 9, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Binance Space ID Tokens Launchpad Secures BNB Commitments Worth $2.8 Billion March 24, 2023
  • Coinbase Argues Software Services Are Not Securities: A Case Against the SEC March 24, 2023
  • Nigeria Now Enabled to Make Direct Crypto Purchases Through MetaMask March 24, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?