FTX Court Documents Exposed! Creditors: Alameda Research Transfers Used for Executives to Buy Yachts

FTX creditors have exposed documents submitted to the local US bankruptcy court, detailing complex financial flows between Alameda Research and several senior FTX executives, including potential transfers for yacht purchases or for SBF to buy Robinhood stocks. However, the document provider also claims that the document has not been fully verified for absolute accuracy in terms of amounts or quantities.

FTX and Alameda Research: Complex Cash Flows

Recently, Cilia, the primary financial advisor for FTX creditors, submitted and disclosed multiple financial documents to the U.S. Bankruptcy Court in Delaware, indirectly indicating that senior executives and related individuals of the cryptocurrency exchange FTX profited significantly before its collapse in November 2022.

Specifically, the documents revealed several transactions involving payments, trades, or asset transfers executed by top personnel of both FTX and Alameda Research within the year leading up to its closure.

SBF's ATM

The documents disclosed that Alameda Research transferred over $900 million to SBF within a year and transferred $3.5 million to former Alameda Research co-CEO Caroline Ellison, without providing detailed reasons or explanations.

In addition, FTX co-founder Gary Wang, Chief Engineer Nishad Singh, former CMO Darren Wong, and former COO Constance Wang also received multiple cash transfers from Alameda Research.

Did Sam Trabucco Buy a Yacht with Company Assets?

The documents also mentioned that in March 2022, Alameda Research transferred $2.513 million to its other co-CEO Sam Trabucco.

Interestingly, Trabucco subsequentlyresigned from his position within a few months, claiming to have bought a yacht and would start enjoying life, a celebration Caroline Ellisoncongratulated him on.

Details of Robinhood Stock Purchase Revealed

The documents also documented partial details of SBF and FTX co-founder Gary Wang's purchase of Robinhood stocks in April and May 2022, spending approximately $31.67 million at the end of April and continuing to cash out $17.51 million to purchase stocks less than two weeks later.

The notes in the document stated that SBF held about 90% through its overseas shell company Emergent Fidelity Technologies, while Gary Wang owned the remaining 10%.

However, the U.S. Department of Justice previously seized the stocks under both their names in January 2023, with SBF holding around 55 million shares valued at $520 million, accounting for over 70% of its seized assets at the time, equivalent to a 7.6% stake in Robinhood.

However, just a few days ago, according to documents submitted by the U.S. Securities and Exchange Commission (SEC) on August 30, Robinhood completed the repurchase of 55.27 million shares for approximately $657 million with the U.S. Marshals Service, speculated to be used for compensating FTX creditors.

Provider: Data Accuracy Not Guaranteed

The FTX creditors providing the documents also stated that due to the company's chaotic financial records and complex fund flows, the absolute accuracy and completeness of the data cannot be guaranteed and may contain errors or omissions.

Furthermore, they claimed that due to tracking difficulties, the disclosed content does not include cryptocurrency and only involves fiat transfers.