New York Times Reaches FTX Documents! Here are the Executive Speeches Before the Crash!

The New York Times documents obtained by cryptocurrency stock market FTXIt offers new details on discussions between senior leaders before the collapse in November.

Documents Received by The New York Times Show FTX Executives Expressing Concerns Over The Use Of Client Funds

A few weeks before the collapse of FTX, a senior executive at the cryptocurrency exchange met with founder Sam Bankman-Fried to express a gnawing concern.

The executive had recently learned that Alameda Research, the crypto trading company that Mr. Bankman-Fried also co-founded, had borrowed approximately $13 billion from FTX.

Alameda was in trouble. The firm had recorded a loss of approximately $5 billion, which included the money it had invested in the stock market for its FTX customers.

Bankman-Fried admitted there was a problem when he was reached, according to documents describing the interview, which were obtained by The New York Times.

According to the documents, Mr. Bankman-Fried told his colleague that “the situation worries him too” and hurt his productivity.

This event, described in private correspondence between the governments of the United States and the Bahamas, provides new insights into the final days of FTX, when the company’s top executives began to panic.

A raid on deposits in November plunged the stock market into a crash, puncturing the firm’s accounts and forcing it to file for bankruptcy.

Last month, federal prosecutors in Manhattan charged Bankman-Fried, 30, with fraud, money laundering and campaign finance violations.

Authorities allege that Bankman-Fried siphoned billions of dollars in client funds from FTX and used that money to make political contributions, finance trade in Alameda and purchase luxury real estate in the Bahamas, where FTX is located.

Bankman-Fried was arrested by Bahamian police on December 12 and later extradited to the United States.

*Not investment advice.