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FTX was Controlled by a Group of Teenagers who Dated Each Other

FTX was Controlled by a Group of Teenagers who Dated Each Other

One news outlet said that the crypto empire FTX built was managed by a group of roommates in the Bahamas who were romantically involved with one another, contributing to the company’s unexpected demise.

  • On Thursday, CoinDesk said that FTX was governed by a “cabal of roommates.”
  • It was also speculated that romantic relationships existed between these roommates.
  • Even SBF’s financials were exposed thanks to a breach by CoinDesk.

The media outlet that kicked off Sam Bankman-plunge Fried’s into the bitcoin mineshaft is adding gasoline to the flames.

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Sam Bankman-bitcoin Fried’s empire collapsed at a startlingly fast rate. People who worked for him share this view in surprisingly high numbers, even among those who should have known better.

Read More: CEO Sam Bankman-Fried Resigns, FTX Files For Chapter 11 Bankruptcy

That can’t be, right?

Perhaps a lavish penthouse in Nassau is involved. There, the 30-year-old Bankman-Fried lives with the inner circle that operated the now-faltering FTX cryptocurrency exchange and trading powerhouse Alameda Research.

Many are friends he made during his time at MIT, while others are former coworkers from the quantitative trading business Jane Street. All ten are currently in or have recently been in committed relationships. Caroline Ellison, CEO of Alameda, whose firm was instrumental in the demise of the corporation, is said to have dated Bankman-Fried at one point.

Read More: FTX Bankruptcy: What Exactly Went Wrong & Why?

Several current and former employees of FTX and Alameda talked to CoinDesk on the condition of anonymity because they have been the target of abuse and death threats due to the exchange’s financial difficulties. According to what they claimed, the workplace is riddled with bias, favoritism, and a lack of accountability.

Under the condition of anonymity, a source told CoinDesk, “The whole operation was run by a gang of kids in the Bahamas.”

Funds Transferred to Alameda

Employees of FTX and Alameda questioned by CoinDesk said they have been kept in the dark about the events of the last week, and that only CEO Bankman-inner Fried’s circle may have known that the exchange transferred customer funds into corporate sibling Alameda, as reported by the Wall Street Journal.

A second employee at Bankman-Fried said on Wednesday, “It’s been radio silence from Sam.” When we first saw CEO Changpeng Zhao’s tweet announcing that Binance would be purchasing FTX, we were skeptical. To which Sam’s subsequent tweet just added credence.

Later on Wednesday, a week after a CoinDesk story sparked the crisis, Bankman-Fried reportedly addressed staff, telling them, “I completely understand if you want to step away,” as seen in an internal communication obtained by CoinDesk.

The Wall Street Journal reported that Ellison of Alameda, Bankman-trading Fried’s business at the center of the current chaos, received $10 billion of FTX customer money. Among his nine roommates are FTX co-founder and Chief Technology Officer Gary Wang, FTX Director of Engineering Nishad Singh, and Ellison of Alameda. And the other six? They’re all FTX workers.

First-hand knowledge claims that “Gary, Nishad, and Sam control the code, the matching engine, and the cash” of the exchange. Who would know if they shuffled them around or substituted their own numbers?

About Davie Bancroft

Davie Bancroft is an accomplished author with a strong focus on investment and the tech business landscape. With extensive knowledge and experience in these fields, he provides valuable insights into emerging trends and opportunities. Davie's writings explore the intersection of technology and finance, offering practical advice for investors and entrepreneurs. His expertise and analytical approach make him a trusted resource for those seeking to navigate the dynamic world of investments and tech startups.