Sam Bankman-Fried and a Company He Owns Received $3.3 billion in Loans from his Alameda Trading Firm, Bankruptcy Filings Says

Sam Bankman-Fried
Sam Bankman-Fried

Alameda Research, the trading arm of Sam Bankman-Fried’s crypto behemoth, loaned him and other firms under his control $3.3 billion, according to documents filed as part of FTX’s bankruptcy proceedings. 

The filing said a loan of $1 billion went directly to Bankman-Fried, while $2.3 billion went to Paper Bird Inc., where he owns a majority stake. Other employees at FTX also received loans from Alameda, including $543 million to the head of engineering Nishad Singh and $55 million to head of FTX digital markets, Ryan Salame. 

The bankruptcy filing included a plethora of mindblowing revelations about FTX. The new chief executive, who oversaw the liquidation of scandal-ridden Enron, said he was shocked by the mishandling of corporate finances. FTX, under Bankman-Fried’s leadership, kept little to no records, and it was warned in the filing that any financial statements made previously could not be relied on. 

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Cash flows from Alameda to other ventures controlled by Bankman-Fried are the central focus of allegations of mishandling customer funds. FTX CEO John J. Ray III said in the bankruptcy filing that “never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”