Sam Bankman-Fried, the former CEO of bankrupt trading firm Alameda Research, allegedly borrowed $1 billion from the business after it borrowed the same amount from another of his companies, according to a report by ShoreNewsNetwork.
The report cites a court filing made on Thursday by the company’s new CEO John J Ray III as the source of the allegation which comes one week after a report that Bankman-Fried had loaned $10 billion of client funds from crypto exchange FTX to Alameda Research when he was FTX’s CEO.
According to a declaration made by Ray to a Delaware court, group of companies he calls the “Alameda Silo,” loaned $4.1 billion to “Related Parties,” including $2.3 billion to Paper Bird Inc — one of the roughly 130 companies in the so-called FTX Group collectively filing for bankruptcy — $1 billion to Bankman-Fried, $543 million to co-founder Nishad Singh and $55 million to co-founder Zixiao “Gary” Wang.
The firm’s new CEO also highlighted a variety of “inappropriate practices” at the companies, including the alleged use of the FTX Group’s corporate funds to “purchase houses and other personal items for employees and advisors,” according to the court filing.
