Sam Bankman-Fried And Three FTX Executives Obtained $4.1 Billion Of Loans From Alameda Compare: Where Did The Money Come From And Where Did It Scamper?

Sam Bankman-Fried And Three FTX Executives Obtained $4.1 Billion Of Loans From Alameda Compare: Where Did The Money Come From And Where Did It Scamper?

Stephanie Jones for Forbes; Portray by Lam Yik/Bloomberg

Chapter filings released Thursday morning detailed billions in loans to Bankman-Fried, including to an entity he managed. Here’s the attach no lower than about a of that money probably went.

FTX financial catastrophe filings released Thursday published that FTX founder Sam Bankman-Fried, his cofounder Gary Wang and two other executives got a full of $4.1 billion in loans from his Alameda Compare shopping and selling firm.

Of that full, $1 billion went to Bankman-Fried in the manufacture of a non-public loan, while $2.3 billion went to an entity he controls, Paper Bird (Bankman-Fried has instructed Forbes that he owns 75% of the entity, with Wang owning the comfort)—so that’s yet any other almost $1.73 billion at Bankman-Fried’s disposal. FTX’s Director of Engineering Nishad Singh got his comprise loan of $543 million, while Ryan Salame, the co-CEO of FTX’s Digital Markets subsidiary, got a $55 million personal loan.

The evident request: Where did all that money scurry? There are two main areas we know about to this level: political donations and private investments.

Bankman-Fried made political contributions worth $40 million at some level of the 2022 midterms, making him the 2nd largest disclosed donor to Democratic causes, while Singh chipped in $7.4 million to a handful of largely left-leaning neat PACs. Salame spent yet any other $23.9 million, largely backing Republicans.

In Can also, Bankman-Fried disclosed a 7.6% stake in no-rate stock shopping and selling app Robin Hood, which cost him $648 million. And then there are investments that Bankman-Fried made by job of an entity known as FTX Ventures reportedly totaling bigger than $500 million in venture capital companies–including surely one of FTX’s supreme backers, Sequoia Capital, plus investments in Altimeter Capital Administration and Multicoin Capital. In step with The Recordsdata, Bankman-Fried entities invested $200 million in Sequoia Capital, including $100 million to Sequoia Heritage, its wealth management fund; plus $300 million in K5 Global, a fund lumber by Michael Kives, reportedly an adviser to Bankman-Fried. The amount of Bankman-Fried’s investments in Altimeter Capital and Multicoin Capital comprise no longer been disclosed.

In step with The Recordsdata, it wasn’t determined if Bankman-Fried had fulfilled his commitments before FTX’s give design, although FTX’s financial catastrophe submitting lists Sequoia and K5 among the investments of FTX Ventures, which has reported resources of almost $500 million–roughly equal to the reported quantity invested in these venture capital companies.

Despite the proven truth that all of that spending used to be funded with loans from Alameda that composed leaves $2.9 billion unaccounted for. (Of that full, for Bankman-Fried’s loans, there is ready $1.5 billion no longer accounted for.) It didn’t scurry toward shopping for mansions in the Bahamas–the financial catastrophe submitting shows that FTX footed the invoice for those. Is it that it is probably you’ll perchance possibly get of Bankman-Fried and his fellow debtors squirreled away resources for a wet day? Maybe. And could possibly those resources had been financed with loans from Alameda that were funded by FTX customer deposits (on Wednesday, Bankman-Fried admitted in leaked Twitter yelp messages with a reporter at Vox that FTX had transferred billions of bucks of purchaser funds to Alameda)? Potentially.

For now, Bankman-Fried is probably surely one of few folks with solutions to those questions. And while he’s basically snappily to acknowledge to emails, he (and his deputies) didn’t at once respond to Forbes’ demand for comment this time spherical.

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