Sam Bankman-Fried and a company he owns got $3.3 billion in loans from his Alameda trading firm, bankruptcy filing says
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- Alameda Research lent $3.3 billion to Sam Bankman-Fried and entities he controlled.
- FTX's bankruptcy filing disclosed a $1 billion loan directly to Bankman-Fried.
- The other $2.3 billion went to Paper Bird Inc., a company SBF owns a majority stake in.
Alameda Research, the trading arm of Sam Bankman-Fried's crypto empire, loaned him and other companies under his control $3.3 billion, according to documents filed as part of FTX's bankruptcy proceedings.
A loan of $1 billion went directly to Bankman-Fried, the filing said, while $2.3 billion went to Paper Bird Inc., which he owns a majority stake in. Other employees at FTX also received loans from Alameda, including $543 million to head of engineering Nishad Singh and $55 million to head of FTX digital markets Ryan Salame.
The bankruptcy filing included numerous stunning revelations about FTX. The new chief executive, who oversaw the liquidation of scandal-ridden Enron, said he was stunned by the mishandling of corporate finances. FTX under Bankman-Fried's leadership kept little to no records, and it was warned in the filing that any financial statements made previously cannot be relied on.
Cash flows from Alameda to other ventures controlled by Bankman-Fried is the central focus of allegations of mishandling customer funds. FTX CEO John J. Ray III said in the bankruptcy filing that "never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here."