SEC civil complaint here. “But from the start, Bankman-Fried improperly diverted customer assets to [Alameda], and then used those customer funds to make undisclosed venture investments, lavish real estate purchases, and large political donations. ” And then there are detailed factual allegations to support that.
Anyone who believed that FTX was fundamentally OK until mid-2022 should update their views in light of SEC’s complaint. If their views about clawback risk were based on such an assumption, they should update their risk assessment as well.
Although I haven’t thought much about it, my sense is that the news that much of the money was paid to Alameda’s creditors more than ninety days before the bankruptcy filing is bad news for the FTX depositors.
SEC civil complaint here. “But from the start, Bankman-Fried improperly diverted customer
assets to [Alameda], and then used those customer funds to make undisclosed venture investments, lavish real estate purchases, and large political donations. ” And then there are detailed factual allegations to support that.
Anyone who believed that FTX was fundamentally OK until mid-2022 should update their views in light of SEC’s complaint. If their views about clawback risk were based on such an assumption, they should update their risk assessment as well.
Although I haven’t thought much about it, my sense is that the news that much of the money was paid to Alameda’s creditors more than ninety days before the bankruptcy filing is bad news for the FTX depositors.
The lawsuits/complaints by the SEC and the CFTC are very substantive and worth reading.
(Also like many legal complaints the quality and tightness of writing is excellent).
SEC complaint
CFTC complaint
It is very likely Caroline Ellison and other insiders (Singh) are the source of this detailed information.
Also, see the Reuters story about codebase changes by Singh.