Corporate funds were used to purchase homes in the Bahamas and “personal items” in the name of employees and advisors of FTX, a bankruptcy declaration said, days after the penthouse apartment of founder Sam Bankman-Fried was listed for nearly $40 million.
It is not immediately clear what the source of those corporate funds was.
In a declaration to the court, newly appointed FTX CEO John Ray III said that a lack of disbursement controls meant accounting for spending was done in a way that was not “appropriate for a business enterprise.”
Corporate housing arrangements are not unusual, especially in high-cost areas, but Ray’s filing noted that “certain real estate was recorded in the personal name of these employees and advisors,” a nontypical arrangement.
A penthouse home in the same private complex that Bankman-Fried and other FTX executives lived in was listed for just under $40 million a few days ago. The penthouse has been widely reported as having belonged to the onetime billionaire and FTX founder.
In the same filing, Ray excoriated the former executive’s team for a “complete lack of financial controls,” saying that he did not have confidence in the balance sheet statements of FTX’s companies.
Auditing for one of the FTX corporate verticals – what Ray referred to as “Silos” – was done by Prager Metis, a firm with “which I am not familiar,” Ray wrote.
Bankman-Fried wasn’t immediately available for comment. Prager Metis did not immediately respond to a request for comment.