FTX Terminates 3 Key Executives Connected To Sam Bankman-Fried

The bankruptcy unit that took over FTX fired people who were aware of the FTX arrangement lending money to Alameda Research.

According to the Wall Street Journal, the new CEO, John J. Ray III, who took over the exchange when Sam Bankman-Fried quit to handle the platform’s bankruptcy, has terminated his contract with the company. Sam Bankman-three Fried’s most trusted managers.

The exchange Chief Technology Officer and Co-Founder Gary Wang, Chief Technical Officer Nishad Singh, and Alameda Research CEO Caroline Ellison have all been sacked. All three are reported to be aware of receiving deposits from users and investing at a loss, resulting in a deficit of up to $8-10 billion. These are all characters who have been “confidants” of Sam Bankman-Fried since FTX and Alameda were founded in 2019.

Alameda Research CEO Caroline Ellison confessed to FTX staff on November 9 that Alameda borrowed a lot of money in 2022 for venture capital as well as spending on operations. When the market plummeted in May as a result of the LUNA-UST lawsuit, creditors recovered those loans, prompting the fund to seek money from this exchange, and FTX transferred customer deposits to Alameda. Only the Chief Technology Officer Gary Wang and Chief Technical Officer Nishad Singh were aware of the deal, in addition to Ellison and Sam Bankman-Fried. Ellison apologized for putting the entire organization in this situation.

According to Sam Bankman-Fried, both Gary Wang and Nishad Singh “ran away” because they “felt bad,” while not knowing where Caroline Ellison’s present position was. where.

Furthermore, on Twitter, a “conspiracy theory” is developing regarding FTX and US financial authorities colluding to ignore FTX’s blunders, causing “disaster.” As a result, Caroline’s father is a Stanford University professor who was previously employed by current SEC Chairman Gary Gensler. The SEC has been in frequent contact with FTX over the years and is claimed to be committed to not interfering with the exchange’s operations.

The new CEO’s report also contains many shocking findings, such as this exchange having a mechanism to prevent Alameda from being liquidated, Alameda lending FTX directors up to 2.3 billion USD, and FTX having no name. With no bank accounts and no user deposits, all power is concentrated in the hands of a small group of Sam Bankman-Fried confidants.

As a result, Mr. John J. Ray recommends that the court not use FTX’s previous financial statements as a basis for evaluation because their reliability is low.

Former CEO Sam Trabucco, who accompanied Alameda Research from 2019 until his abrupt resignation in September 2022, just before the exchange’s problems were exposed, is one character who is completely absent from the FTX – Alameda crash.

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