The founder of the bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, planned to buy an atoll in the island nation of Nauru in order to build a bunker there and wait out a possible end of the world. This is with reference to a lawsuit filed by FTX against Bankman-Fried and other former executives of the exchange, reports The Washington Post.
According to the newspaper, the $1 billion lawsuit says that Bankman-Freed planned to withdraw money from the crypto exchange to build a bunker on Nauru, which will be used for “some event where 50-99.99% of the people die.”
WP writes that the island, which the crypto billionaire planned to acquire, with an area of 8.1 sq. miles (20 sq km) has limited fresh water, little arable land, and imports at least 90% of its food. Because most of its infrastructure is on the coast, it is particularly vulnerable to extreme weather conditions.
“This really shows how much the preparation of billionaires for doomsday is actually about fantasy,” University of Pittsburgh professor Calum Matheson told WP.
FTX Trading sued the founder of the crypto exchange and other former leaders of the exchange on July 20 to recover more than $1 billion that they allegedly misappropriated before the exchange entered the bankruptcy process. […]
The alleged fraudulent transactions took place from February 2020 to November 2022 when FTX filed for protection under Sec. 11 of the US Bankruptcy Code. The application of this chapter involves the reorganization of the company in order to maintain business.
FTX has entered voluntary bankruptcy proceedings under Sec. 11 US Bankruptcy Code November 11 last year. On the same day, Sam Bankman-Fried resigned as head of the stock exchange and was replaced by bankruptcy specialist John Ray III. In December 2022, Bankman-Fried was arrested in the Bahamas at the request of the US. The Securities and Exchange Commission charged the businessman with “organizing a scheme to deceive investors”, he faces up to 115 years in prison.
FTX executives were chic with clients’ money
Sawed even for charity
FTX Trading on July 20 sued crypto exchange founder Sam Bankman-Freed and other former exchange executives to recover more than $1 billion they allegedly misappropriated before FTX filed for bankruptcy, Reuters reported.
The filing, filed in a Delaware bankruptcy court, also includes Caroline Ellison, who ran Alameda Research hedge fund, Gary Wang, former head of technology at FTX, and Nishad Singh, former crypto exchange CTO, among the defendants.
FTX officials allege that the defendants consistently embezzled funds to fund luxury condominiums, political contributions, investments and other personal projects, thus committing “one of the largest financial frauds in history.” […]
Also, the FTX crypto exchange demanded a return of $ 71.5 million for charitable programs. Part of the money was received by Latona under the guise of “investments and donations in biomedical organizations.”
The bankruptcy proceedings of the FTX group of companies have been going on for several months. Management companies began to return funds from recipients of donations from the ex-head of the exchange Bankman-Fried and his former colleagues at the end of December 2022. The company said that if the previously transferred funds are not returned voluntarily, FTX representatives will go to court demanding the return of not only the money itself, but also interest on it, which will accrue from the date the documents are submitted to the court.
In June, FTX managers recovered $7 billion of the exchange’s liquid assets. The former management of the crypto platform has used client funds at its discretion since its inception, court documents have alleged.