FTX executives bought luxury homes with user funds

According to CNBC, FTX corporate funds were used to buy real estate in the Bahamas, as well as a number of other personal assets.

"I understand that FTX Group corporate funds were used in the Bahamas to buy homes and other personal items for employees and advisors." This follows from a 30-page document filed with the U.S. Bankruptcy Court for the District of Delaware. And FTX's new CEO, John Ray, wrote those lines.

John Ray, a bankruptcy expert who oversaw the liquidation of Enron, said the bankruptcy of the crypto exchange was the worst case of corporate collapse he had seen in more than 40 years.

John also said he found the international FTX, U.S. FTX, and Bankman-Fried's Alameda Research trading company to have "compromised systems integrity," "improper regulatory oversight overseas," and "a concentration of control in the hands of a tiny group of inexperienced, unsophisticated and potentially compromised individuals."

Among the assets listed in the document were $4.1 billion in loans from Alameda, $3.3 billion of which were made personally to Bankman-Fried and a company he controlled. Bankman-Fried told the Financial Times that FTX "accidentally" transferred $8 billion of FTX customer funds to Alameda.

Yeah, well, it's a commonplace to hand over $8 billion "accidentally," it's that kind of thing, isn't it? So we'll keep an eye out. Maybe that's far from all that remains to be learned.

Also, Sam frequently used auto-delete messaging platforms "and encouraged employees to do the same."

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