Since cryptocurrency exchange FTX went bankrupt in November 2022, the company has continued Sam Bankman Fried has been the subject of intense scrutiny, revealing a web of information that is absurd to say the least.
Among the many revelations in a new lawsuit against the company, one particularly intriguing story stands out: the dream of the brother of the FTX CEO to build an apocalyptic bunker on an island.
The then-third largest exchange in the market, founded by executives of the now-defunct cryptocurrency platform, has been charged with several crimes, including using client funds for personal purposes.
According to new information revealed in one of the lawsuits filed by the FTX bankruptcy estate, led by former Enron trustee John Ray, they are seeking 48 charges related to the fraudulent transfer of funds by former FTX executives:
Bankman-Fried, CTO Gary Wang, Chief Engineering Officer Nishad Singh and Alameda CEO Caroline Ellison.
Donations out of pocket
In addition to previous allegations about how the executives used FTX funds — including Sam Bankman-Fried’s use of client funds to fund his own defense — the lawsuit includes new allegations about his extravagant spending.
One such project, described by the bankruptcy lawyers, was the creation of a charity called the FTX Foundation “had little purpose other than to put money in the pockets of the defendants”claiming that she received donations directly from bank accounts that held client funds.
The FTX Foundation was described as having projects “often misplaced and sometimes dystopian”, including a $30,000 grant to an individual to write a book on understanding “the utility functions of man”.
Another $400,000 was given to a entity that produced animated videos for YouTube about effective altruisma philosophical movement popular among FTX executives that seeks to maximize social impact through charity and other lifestyle choices.
Prior to the collapse of FTX, Sam Bankman-Fried was known as a major donor to political and social causes, often working with his brother, Gabriel Bankman-Fried, a former Democratic public servant and founder of an advocacy organization called Guardian Against Pandemics (GAP).
The bankruptcy estate alleges that Sam Bankman-Fried sent at least $35 million to GAP, most of which came from Alameda accounts containing customer funds.
Apocalyptic bunker on an island
However, the most intriguing story involves Gabe Bankman-Fried’s plan to buy an island.
The documents submitted include a memorandum in which Gabe outlines a plan to buy Nauru, a small island nation in Micronesia.
According to the memorandum, the goal would be build a bunker in case “50%-99.99% of people die”with the aim of ensuring the survival of the majority of Effective Altruists (EAs) and also to develop human genetic enhancement research in a laboratory on the island.
In other words, FTX executives wanted to build a luxury bunker to hide in in case of an apocalypse, using money from the brokerage clients, of course.
The lawsuit filed by FTX’s bankrupt estate seeks the recovery of all assets that were the subject of fraudulent transfers, as well as monetary compensation, although the amount has not been specified.
While Sam Bankman-Fried awaits trial, which is scheduled for October this year, Gary Wang, Nishad Singh and Caroline Ellison have pleaded guilty to criminal charges and are cooperating with the Justice Department.
Gabe Bankman-Fried, brother of Sam Bankman-Fried, has yet to be charged by prosecutors in the FTX collapse case.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.