"Sam Bankman-Fried ran everything as if it were his own fiefdom," said attorneys

by   |  VIEW 289

"Sam Bankman-Fried ran everything as if it were his own fiefdom," said attorneys

How many fords for FTX after the collapse, but also for its investors and CEO Sam Bankman-Fried, now under investigation. After the bankruptcy filing filed on November 11, the liquidating lawyers during the first bankruptcy hearing reported that the former CEO Bankman-Fried was running the platform as a personal fiefdom and with large sums of money earmarked for business.

unrelated to it. Bankman-Fried would use FTX's substantial funds, billions of dollars, to make risky investments in projects like Sequoia Capital and in companies like Elon Musk's SpaceX. During a suspension of the hearing, as reported by the BBC, some participants said they lost their life savings after the collapse of FTX.

The next hearing, according to the American media, should be set for 11 January. James Bromley of Sullivan & Cromwell said by Finalcial Times: "We witnessed one of the most sudden and difficult collapses in American history at the corporate level.

The bankruptcy filing had for the first time allowed everyone to see under the covers and acknowledge that the emperor was naked Huge funds were discovered and used for things unrelated to the business: about $ 300 million worth of properties in the Bahamas that were vacation homes and properties used by FTX senior executives.

What happened

FTX suffered a liquidity crisis in late 2022, which led to the collapse of FTX's native cryptocurrency, FTT. In the midst of the crisis, Bankman-Fried also announced that he would close operations at his trading company, Alameda Research.

Bankman-Fried's net worth peaked at $ 26 billion. As of October 2022, he had an estimated net worth of $ 10.5 billion. However, on November 8, 2022 during FTX's solvency crisis, its net worth is estimated to have dropped 94% in one day to $ 991.5 million, according to the Bloomberg Billionaires Index, the largest drop in a year.

day in the history of the index. By November 11, 2022, the Bloomberg Billionaires Index considered Bankman-Fried to be devoid of material wealth. Before his wealth was eroded in November 2022, Bankman-Fried was a major donor to the Democratic Party.