Source: Adobe/Studio_EastBahamian liquidators working at the now-bankrupt cryptocurrency exchange FTX believe there was "serious fraud and mismanagement" at the exchange, court documents have revealed.
"The findings of the provisional colliders to date indicate that FTX and the group of related companies may have engaged in serious fraud and mismanagement," the documents say, according to multiple news outlets.
The documents are likely referring to media revelations last week, when news broke that Sam Bankman-Fried's cryptocurrency trading firm, Alameda Research, owed around €10 billion to FTX. . Reports have also indicated that FTX misused client funds and made a failed €500 million loan to crypto lender Voyager Digital in May.
Voyager Digital filed for bankruptcy in July this year after getting caught up in the contagion following the collapse of crypto hedge fund Three Arrows Capital.
The allegations against FTX by the liquidators were made in filings filed Wednesday with the US Bankruptcy Court for the Southern District of New York. The documents were filed on behalf of Bahamian liquidators Brian Simms, Kevin Cambridge and Peter Greaves.
In addition to exposing the "fraud and mismanagement" occurring at FTX, the recently filed documents also seek to block the sale of any FTX assets until the court makes a decision on next steps under US bankruptcy law. .us
Nansen: "Strong (chain) ties" between FTX and Alameda
Meanwhile, a report from crypto-analytics platform Nansen revealed on Thursday that ties between FTX and Alameda, two of Bankman-Fried's most prominent firms, have been close "from the start."
Nansen analysts came to the conclusion by studying a series of on-chain transactions between the Bankman-Fried companies, finding evidence of large transfers of FTX's own FTT token between the two entities. He added that the majority of Alameda's capital "is FTX's own centrally controlled token, FTT."