Sam Bankman-Fried says he paid so little attention to expenses that he didn't realize he was spending too much, report says




gettyimages 1232817889 594x594
gettyimages 1232817889 594x594  
  • Sam Bankman-Fried claims he paid little attention to his company expenses, per Bloomberg.

  • The FTX co-founder told Bloomberg he didn't realize he was spending more than he was taking in.

  • Authorities in the US and the Bahamas are investigating FTX's collapse.

Sam Bankman-Fried said he paid so little attention to his company expenses that he didn't realize he was spending more than he was taking in.

The FTX co-founder told Bloomberg that the billions of dollars customers wired to Alameda Research, a trading firm and FTX's sister company, were gone because the companies were spending more than they made.

The disgraced crypto boss is facing investigations in the US and the Bahamas after he was accused of misusing customer funds to prop up Alameda Research. 

When demonstrating the company's biggest cashflows to the Bloomberg journalist, Bankman-Fried listed $250 million in expenses for real estate and $1 billion for "fuckups." His largest expense was listed as a net payment of $2.5 billion to rival Binance to buy out the company's investment in FTX.

After putting the company expenses into a spreadsheet, Bankman-Fried created a column of much lower numbers to demonstrate how much he thought he was spending at the time, per Bloomberg.

According to court documents filed by FTX's newly appointed CEO John J. Ray III, the company didn't have a formal accounting department.

Company expenses, which reportedly included a $200 daily allowance for food delivery, were approved by emojis on online chats, according to a bankruptcy filing.

Representatives for FTX did not immediately respond to Insider's request for comment made outside of normal working hours.

COMMENTS

More Related News

Stock Bull Pain Threshold Swells to Pandemic Size in New Market Run-Up
Stock Bull Pain Threshold Swells to Pandemic Size in New Market Run-Up

(Bloomberg) -- Anyone who lived through the 2020 bull market knows: investors, especially of the retail ilk, can stomach a lot of pain. However dark is the...

Amazon Projects Lackluster Sales on Slower Cloud Unit Growth
Amazon Projects Lackluster Sales on Slower Cloud Unit Growth

(Bloomberg) -- Amazon.com Inc. projected lackluster revenue in the current quarter, worrying investors that the company's main e-commerce business has...

Meta Evokes Big Tech
Meta Evokes Big Tech's Glory Days With Biggest Surge Since 2013

(Bloomberg) -- A spectacular turnaround in Meta Platforms Inc.'s stock is bringing back flashes of Big Tech heydays.Most Read from BloombergMerck Covid Drug ...

The criminal case against Sam Bankman-Fried and Caroline Ellison could put jilted FTX customers in the backseat
The criminal case against Sam Bankman-Fried and Caroline Ellison could put jilted FTX customers in the backseat
  • US
  • 2023-02-02 17:59:28Z

Usually, cooperating witnesses share everything - but prosecutors may be holding back material in the FTX bankruptcy case, according to experts.

Bankman-Fried Wins Texas Ruling as States Go After Lost Funds
Bankman-Fried Wins Texas Ruling as States Go After Lost Funds
  • US
  • 2023-02-02 17:31:56Z

(Bloomberg) -- Embattled FTX founder Sam Bankman-Fried has staved off a case alleging he broke Texas securities laws, after a judge ruled that the state...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Gold rate today
    (2022-12-03 12:33:37Z)

    Live Gold rate today UK for 9k 14k 18k 22k and 24k gold , Use our live Gold price today to check the price of gold We pay Instant cash Highest Price!

    REPLY

Top News: Economy