FTX used customer funds to purchase employee homes
FTX used customer funds to purchase employee homes

FTX used customer funds to purchase employee homes

As per recent reports, the cryptocurrency exchange company FTX has filed bankruptcy and undergoing legal proceedings in US. in the recent company investigations it’s revealed that FTX company was diverting funds of retailer investors into Personal benefits of company employees. It is revealed that FTX company was using these funds for purchasing houses in the US. 

Bahamas penthouse where FTX based worth $40m, listing reveals
source : dailymail.uk

The reports about these investigations were shared by the new CEO of the FTX platform John Ray III. A further mentioned that the company was using these funds under the note of certain real estate investments as a part of the company’s record sheet. These investments were directly owned by some people who were employees within the company.

Who is the new CEO of FTX?

John Ray III will work for the bankrupt company FTX. Ray III Was one of the key resource officers in the company Enron when the company was lowest rock bottom stage. Ray is working in the FTX platform as a restructuring officer and the new CEO of FTX and lead in the process of restructuring the company. FTX has filed the bankruptcy last week on Friday and the former CEO of FTX Sam Bankman Fried has already resigned from the company.

Ray further mentioned that there was a lack of financial controls in the FTX company and the company was lacking corporate control along with the absence of trustworthy financial information about the monetary footprints of the company to the general public. FTX company used corporate Funds into the company for purchasing homes in the Bahamas under the label of personal items of the employees and their Advisors of the FTX platform

FTX company used the corporate funds invested into the FTX platform for purchasing the properties like homes in the Bahamas. the declaration about these investments of purchase of FTX platform into the public domain after the company has to go through a legal investigation in the US.

Recent declarations also revealed that the former CEO of FTX Sam Bankman-Fried had purchased a penthouse with $40 million in the Bahamas. The investment source for purchasing all these properties by the FTX platform through the corporate funds is not been Clearly discovered in the legal investigation yet and the lack of disbursement controls along with the loopholed accounting and spending practices were carried out into the FTX as a complete scandaled business enterprise

The new CEO of FTX, Ray also pointed out the issues like a complete lack of financial controls in the working team of FTX and said that you the former team was not having any confidence in the balance sheet of the FTX platform.Thie years of auditing of the FTX platform was by Prager metis, which is felt as silos and an unfair form by the new CEO of FTX.