FTX used corporate funds to purchase employee homes, new filing shows

Corporate funds were utilized to acquisition Bahama homes and "personal items" successful the sanction of employees and advisors of FTX, a bankruptcy declaration said, days aft the penthouse flat of laminitis Sam Bankman-Fried was listed for astir $40 million.

It is not instantly wide what the root of those firm funds was.

In a declaration to the court, recently appointed FTX CEO John Ray III said that a deficiency of disbursement controls meant accounting for spending was done successful a mode that was not "appropriate for a concern enterprise."

Corporate lodging arrangements are not unusual, particularly successful high-cost areas, but Ray's filing noted that "certain existent property was recorded successful the idiosyncratic sanction of these employees and advisors," a non-typical arrangement.

A penthouse location successful the aforesaid backstage analyzable that Bankman-Fried and different FTX executives lived successful was listed for conscionable nether $40 cardinal a fewer days ago. The penthouse has been widely reported arsenic having belonged to the onetime billionaire and FTX founder.

In the aforesaid filing, Ray excoriated the erstwhile executive squad for a "complete deficiency of fiscal controls," saying that helium did not person assurance successful the equilibrium expanse statements of FTX's companies.

Auditing for 1 of the FTX firm verticals – what Ray referred to arsenic "Silos" – was done by Prager Metis, a steadfast with "which I americium not familiar," Ray wrote.

Sam Bankman-Fried wasn't instantly disposable for comment.

Ray, who oversaw Enron's bankruptcy proceedings and restructuring, declared helium had 40 years of acquisition successful the bankruptcy and firm space.

"The Debtors bash not person an accounting department," Ray wrote, stating helium expected it would beryllium "some time" earlier reliable fiscal statements could beryllium prepared.

FTX and affiliated companies, including Alameda Research, Bankman-Fried's crypto trading firm, filed for Chapter 11 bankruptcy protection earlier this month.