By Nathan Vardi November 18, 2022
— Ray in bankruptcy-court
As of Thursday, Ray said he’d “located and secured only a fraction of the digital assets” he hoped to recover.
Ray said he couldn’t make a list of FTX’s top 50 creditors including customers.
Ray revealed that Alameda had made $4.1 billion of related-party loans that remained outstanding at the end of September.
Ray’s filing said that there is no documentation for the transactions and loans associated with these real estate purchases, which were recorded in the personal name of employees and advisors.
FTX employees “submitted payment requests through an on-line ‘chat’ platform where a disparate group of supervisors approved disbursements by responding with personalized emojis.”
According to the bankruptcy filing, Alameda’s balance sheet showed $13.46 billion in total assets as of the end of September.
Audit opinions for the international FTX trading platform part of the company came from Prager Metis, which describes itself as the “first-ever CPA firm to officially open its Metaverse headquarters in the metaverse platform Decentraland.”
Ray’s filing indicated that the hedge fund might have had a trading edge on the FTX.com trading platform.
Though Ray expected “significant liabilities” to arise, none of these liabilities were reflected in the financial statements that were prepared while Bankman-Fried ran FTX.
Many of the balance sheets at FTX and Alameda are unaudited, and because they were produced while Bankman-Fried ran the company, Ray is skeptical of their integrity.