• About Us
  • Careers
  • Contact
No Result
View All Result
Friday, July 25, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home News

New Investigative Report Reveals Allegations of Fund Misuse and Lavish Spending by Former FTX Executives

27 June 2023
in News
Reading Time: 3 mins read
101 8
New Investigative Report Reveals Allegations of Fund Misuse and Lavish Spending by Former FTX Executives

Source: cnbc.com

FTX Debtors, released their second investigative report on June 26, 2023, and it contains allegations of misappropriation of funds and extravagant spending on unrelated projects by former executives of the bankrupt company. The report focused on the misuse of client funds and shed light on charitable contributions made through the nonprofit FTX Foundation.

According to the report, the FTX Foundation distributed $700,000 in “grants”, with $400,000 allegedly given to an entity producing animated YouTube videos unrelated to cryptocurrencies or Web3. Another $300,000 grant was awarded to an individual for publishing a book exploring human utility functions. 

The report revealed that these “grants” were funded using a combination of FTX customer funds held in various bank accounts controlled by FTX, Alameda Research, and affiliated businesses.

The report also exposed the inclusion of a $1.8 million property named “Pineapple House” in FTX’s portfolio of Bahamian properties worth $243 million. It is alleged that this property was purchased using client funds, further deepening the misconduct.

In a press release accompanying the report, John J. Ray III, CEO and Chief Restructuring Officer of the FTX Debtors, condemned the actions of the previous senior executives, stating that the image portrayed by the FTX Group as a customer-focused digital leader was nothing but an illusion. 

Ray stated:

“The image that the FTX Group sought to portray as the customer-focused leader of the digital age was a mirage. From the inception of the FTX.com exchange, the FTX Group commingled customer deposits and corporate funds, and misused them with abandon at the direction and by the design of previous senior executives.” 

This investigative report is part of the ongoing review of FTX’s activities leading up to its Chapter 11 Bankruptcy filing. The first report exposed failures in critical areas such as management, finance, digital asset management, information security, and cybersecurity.

Looking ahead, the FTX Debtors are expected to release the third report in August 2023. The release of these reports marks a crucial step in uncovering the extent of the misconduct and working towards a resolution for FTX and its affected clients.

John Ray III also announced that they have successfully recovered approximately $7 billion in liquid assets thus far, with ongoing efforts to locate additional funds. However, the mingling of assets has presented challenges to their recovery efforts. The FTX Debtors estimate that the total value of client assets misused amounts to $8.7 billion, with around $6.4 billion held in fiat and stablecoins, which were not appropriately accounted for in FTX’s records.

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Tags: FTXSBF
Share64Tweet40Share11
Durotimi Aribisala

Durotimi Aribisala

Durotimi is a writer who is interested in writing about emerging technologies such as blockchain, Web3, crypto, and AI. He studied business administration and management. He desires to be an entrepreneur and movie director sometime in the future.

Related Posts

source: financialit.net
Business

21Shares and Societe Generale Partner to Broaden Institutional Access to Crypto ETPs in Europe

24 July 2025
source: decrypt.co
Bitcoin

Bitcoin Flow Pulse Suggests Strong Holder Confidence Amid $120K Price Level

24 July 2025
source: stockwits.com
Ethereum

BitMine Begins Options Trading on NYSE as It Targets 5% of Ethereum Supply

24 July 2025
source: kvue.com
Bitcoin

Bitzero Secures $25M to Scale Sustainable Bitcoin Mining with Advanced Bitmain S21 Pro Rigs

24 July 2025

Featured Posts

What is a Crypto Order Book and How Does it Work?

What is a Crypto Order Book and How Does it Work?

byOlayinka Sodiq
14 July 2025
0

Elon Musk's xAI Colossus: What It Is and Why It’s a Big Deal?

Elon Musk’s xAI Colossus: What It Is and Why It’s a Big Deal?

byOlayinka Sodiqand1 others
12 July 2025
0

Is AI the Future of Crypto Trading or a Threat to Market Stability?

Is AI the Future of Crypto Trading or a Threat to Market Stability?

byOlajumoke Oyaleke
7 July 2025
0

What Are DeFi Options Vaults, and How Do They Work?

What Are DeFi Options Vaults, and How Do They Work?

byOlajumoke Oyaleke
26 June 2025
0

source: investorplace.com

How to Find the Newest Cryptocurrencies Before They’re Listed

byOlayinka Sodiq
30 December 2024
0

Read More

Chain of Thoughts

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Markets Update

Your Weekend Crypto Roundup | July 2025 (Week 3)

6 days ago

Account Abstraction Adoption: Are Users Ready for Smart Wallets?

1 week ago

The Role of Real-World Assets (RWAs) in the Next DeFi Boom

1 week ago

Stablecoins in 2025: Still Depegging or Finally Stable?

1 week ago

Your Weekend Crypto Roundup | July 2025 (Week 2)

2 weeks ago

The Battle for Web3 Infrastructure: Which Platforms are Dominating in Decentralized Storage, Compute, and Identity?

2 weeks ago
Read More

Events

Rare Evo 2025
Rare Evo 2025
6 Aug 25
Las Vegas
CBDC Conference
CBDC Conference
9 Sep 25
Nassau

Spotlight

All about Ethereum
All about Algorand
All about Bitcoin
All about Gora

Press Releases

LFG… Launches AI Alpha Pilot for Meme-Coin Hunters

bychainwire
24 July 2025
0

Zircuit Launches AI Trading Engine for Lightning-Fast, Cross-Chain Trading

bychainwire
24 July 2025
0

Bybit Card Celebrates Two Million Users with Limited-Edition Collectible and 1 BTC Giveaway

bychainwire
24 July 2025
0

Ethereum Based Meme Coin PEPETO Surpasses $5.5M in Presale

bychainwire
23 July 2025
0

Crypto MEV Bot (Cryptomevbot.com) Launches Crypto Trading Bot for Individual and Enterprise Traders

bychainwire
23 July 2025
0

Read More

ADVERTISING

ABOUT

TEAM

CAREERS

CONTACT

TERMS & CONDITIONS

PRIVACY POLICY

© Copyright 2025 DeFi Planet

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.

Add New Playlist

No Result
View All Result
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

© Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00