FTX bankruptcy filing: ‘no amount’ will be paid to SBF or its inner circle
Former FTX CEO Sam Bankman-Fried was right about one thing: He and his inner circle won’t see any more money from the company.
FTX announced in a court filing over the weekend that neither Bankman-Fried nor the three recently fired members of his inner circle (nor their family members) will receive any compensation from the now-bankrupt company.
Bankman-Fried comes first on Nov. 10, the day before FTX files for bankruptcy, and he steps down as CEO, making users whole, he said. “After that, investors old and new, and employees who fight for what’s right in their careers and take no responsibility for any failure,” he said. on Twitter.
12) Every penny of this and the existing pledge will go directly to the users.
After that, investors – old and new – and employees fighting for what’s right for their careers and not being held accountable for any wrongdoing.
At the time, he was still the CEO and had not yet announced that the company was filing for bankruptcy.
Since then, FTX has taken steps in this direction He moved away from Bankman-Fried. Bahamian regulators he denied and then confirmed said they ordered workers to transfer hundreds of millions unauthorized transactions that same day, the company filed for Chapter 11 protection on November 11.
Now the company makes it clear that, at least in this case, the words of Bankman-Fried will be true: “No amount shall be paid to the following persons or to any person known to the debtors under the authority sought by this petition. Having a family relationship with any of Samuel Bankman-Fried, Gary Wang, Nishad Singh or Caroline Ellison,” reads today’s filing.
An FTX spokesperson confirmed that co-founder and chief technology officer Gary Wang, director of engineering Nishad Singh and Alameda Research CEO Caroline Ellison were fired on Friday, November 18. The Wall Street Journal report.
A very sharp exclusion of Bankman-Fried and his inner circle a Movement from FTX to pay employees for work done before the company went bankrupt and to continue to pay compensation and benefits during the litigation.
In bankruptcy cases, it is customary for debtors, in this case FTX, to ask a judge for permission to continue paying their employees. After all, the company’s funds must be frozen. But FTX’s new CEO, John J. Ray III, noted that it did It is especially difficult to find all the funds and employees of the FTX.
The lawsuit also showed that before the bankruptcy filing, the company had logged $20,000 in billable hours with Owl Hill Advisory, the company where it hired John J. Ray III as its new CEO.
Ray himself commands $1,300 per hour, and the consulting firm will bill FTX on a monthly basis. The executives he hired from RLKS Executive Solution to help with finance and administration will be paid $975 an hour.
FTX also said in the filing that it has stopped the practice of paying some employees “with its own cryptocurrency token and/or stock options or equity-based compensation.” FTX’s proprietary token is the FTX Token or FTT.
The trouble first started for the quantitative trading desk for FTX and its sister company, Alameda Research, when a leaked balance sheet showed $5 billion worth of FTT on Alameda’s $14 billion balance sheet. This led former FTX investor Binance to announce that it would liquidate its $580 million FTT position. The resulting bank run caused the price of FTT to crater as users rushed to sell their tokens and withdraw funds from the FTX platform.
After Binance announced its intention to acquire rival cryptocurrency exchange FTX, Binance canceled the deal a day later. Bankman-Fried then announced in several lengthy Twitter threads that he misunderstood the company’s leverage and that he and his team would work to find liquidity, at one point a pending deal with Justin Sun’s TronDAO.
But shortly after that announcement, FTX filed for Chapter 11 bankruptcy protection on Friday, November 11.
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