New court documents reveal that while Sam Bankman-Fred seemed unprepared for the fall of his cryptocurrency exchange FTX, he had other survival plans.
The filings reveal his strategy for acquiring the island of Nauru, envisioning it as a refuge for himself and fellow members of the Effective Altruism movement in the event of a catastrophic event such as a major fire or flood.
Often misleading and sometimes miserable
Newly submitted court documentsfiled in federal bankruptcy court in Delaware on July 20, revealed a memo written by an FTX official and Gabriel Bankman-Fried, Sam Bankman-Fried’s brother.
The memorandum laid out a future-focused survival-focused vision plan for FTX and Alameda Research employees, as well as individuals affiliated with the concept of Effective Altruism, presenting interesting possibilities for sustaining these groups in times to come.
A lawsuit was recently filed on allegations against the FTX Foundation, the non-profit arm of cryptocurrency exchange FTX. The lawsuit claims that the foundation’s projects were “often misguided and at times miserable.”
Among the controversial revelations was a memorandum exchanged between the foundation’s administrator and Gabriel Bankman-Fried, brother of FTX founder Sam Bankman-Fried.
This memorandum outlined an amazing plan to acquire Nauru, a coral atoll located in the southwestern Pacific Ocean 25 miles south of the equator.
The primary purpose of this bold proposal was to build a bunker, ensuring the survival of members committed to the effective altruistic movement, a philosophy openly associated with Sam Bankman-Fried. The memo interestingly suggested that the acquisition of a sovereign state like Nauru could serve other purposes as well, adding to the seriousness of the allegations highlighted in the complaint.
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It was also revealed that Ellison, a prominent figure at FTX.com, awarded herself a staggering $22.5 million bonus in March 2022. Remarkably, this bonus coincided with her estimated $10 billion cash shortfall in the company. The lawsuit alleges that through complex and baffling transfers, Ellison was able to deposit money from Alameda into her FTX account, with $10 million of that money eventually flowing into her personal bank account.
Another lawsuit news
The news comes as part of the new lawsuit filed against former CEO, Sam Bankman Freed (SBF), along with his close associates, who are seeking to recover more than $1 billion in misappropriated funds. The lawsuit alleges that Bankman-Fried and his associates showed negligence in maintaining proper financial records, allowing unmonitored transfers and expenses while concealing their wrongful actions.
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And FTX asserts that these transfers took place during periods when the stock exchange and its affiliates were already insolvent, which means that the accused was aware of the deteriorating financial situation.
The legal battle intensifies as FTX aims to hold those responsible accountable for their alleged actions, and seek justice for mismanagement of funds and possible fraudulent activities.
