FTX filed for bankruptcy on the 11th and shortly after there were suspicious movements of $500M in funds belongs to the exchange. FTX called these movements of funds ‘unauthorized’ and ‘unrecognized’, stopping short of calling it a hack as reported to be a hack by many media outlets. FTX US General Counsel even came out making these statements himself and said FTX would “continue to make every effort to secure all assets, wherever located.”. The new FTX CEO also stated that they would be investigating the situation regarding unauthorized funds movements. FTX even filed court documents that essentially referred to the funds movements as a hack.
It was only after investigation FTX ‘learned that Bankman-Fried and FTX co-founder Gary Wang made “unauthorized” transfers at the direction of the Bahamian government.’
So basically, SBF, and co-founder Wang in this case, could and was manipulating company funds with zero oversight and communication with anyone else in the company. I’m not sure how to even comprehend the insanity of one person doing whatever they like with company assets and literally nobody else in the company is none the wiser. To the point that the company need to launch an entire investigation, is filing legal documents and reporting to media that they have been hacked.
A few days after the ‘hack’, SBF did an interview with Vox media. In this interview he refers to him transferring assets to Bahamas regulators as a hack.
This seems to be him trying to throw regulators under the bus as he also relays is intense disdain toward regulators. It’s still a very confusing way of doing so however.
I have no words to describe what this situation anymore.