Fraud trial against bankrupt FTX exchange executives will take place in October. However, news about the affairs of the ill-fated marketplace continues to come in.
Politicians offered to return the money
The FTX Group sent closed letters to politicians who received donations from the former head of the exchange, Sam Bankman-Freed. The letters contain demands for the return of donations.
FTX debtors are reviewing $93 million in political donations from March 2020 to November 2022
(Slide from the FTX debtor presentation you can find on the Kroll docket https://t.co/YMEq1bZF66) pic.twitter.com/mUhZ7g0mjx
— Stephanie Murray (@stephanie_murr) January 17, 2023
The court documents include the amount of $93 million – that is how much client funds the ex-head of the exchange spent on politics.
John Ray makes good money
The new head of FTX, John Ray, is working hard and has already earned a tidy sum because he is paid by the hour. From November 11 to December 31, 2022, he received $690,000, told Business Insider publication, citing court documents.
The head of FTX earns $1,300 an hour and has worked an average of 75 hours a week since the exchange filed for bankruptcy. He deals with the return of client funds and is in contact with the court.
John Ray is a very expensive specialist with a unique experience in the restructuring of sinking businesses. He has worked with Enron, Nortel and Overseas Shipholding. In mid-January, he revealed that he was looking into the possibility of restarting FTX. True, he chose not to share the details.
The new head of FTX is not particularly shy in expressions. He stated that in his entire career he had never seen such a total failure of corporate control and a complete lack of any kind of understandable documentation. John Ray believes that banal embezzlement, and not some malicious and sophisticated deception scheme, led to the bankruptcy of the trading platform.
Signature Bank found to be linked to FTX
One of the largest US cryptocurrency banks, Signature Bank (SBNY), is accused of being involved in a fraudulent operation along with FTX executives. The class action lawsuit was filed by companies of the Statistica Capital group, which is engaged in investment management and cryptocurrency trading.
The plaintiffs allege that Signature Bank provided FTX with the ability to mix client funds on its blockchain network. Moreover, the bank’s management has been aware of fraudulent transactions since at least 2020 and has helped FTX and the Alameda fund conduct fraudulent transactions.
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