Cryptocurrency derivatives exchange FTX has been lying to banks about the suspicious movements of customer assets as far back as 2020, the company’s new leadership alleged in court filings.
Once a $32 billion crypto empire, FTX collapsed in November 2022 after its disgraced founder Sam Bankman-Fried allegedly misappropriated customers’ money to cover losses at his privately held trading firm Alameda Research. Bankman-Fried pleaded not guilty in January to a slew of criminal charges, including wire fraud and money laundering.
According to a report filed on Monday in a federal bankruptcy court in Delaware, Bankman-Fried and his several senior executives commingled customer and corporate funds on purpose so they could venture speculative trades, buy luxury Caribbean real estate, and make political donations “designed to enhance their own power and influence.”…