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Customer funds from Sam Bankman-Fried’s FTX were allegedly spent on a $2.5-million yacht , which was believed to be a gift for Sam Trabucco, the former co-CEO of Alameda Research. Two filings — one from July 31 and another from Aug. 31 — show a long list of statements, fund transfers and payments made prior to FTX’s bankruptcy. Among the items listed is a cash payment of more than $2.5 million to the American Yacht Group “for the benefit of Sam Trabucco.” $2.5m of FTX customer deposits were used for Sam Trabucco's Yacht pic.twitter.com/6gN4pvD3q8 — Sunil (FTX Creditor Champion) (@sunil_trades) September 1, 2023 Trabucco was one of the first hires at Alameda, a trading firm and sister entity of FTX. He resigned from the now-defunct hedge fund on Aug. 24, 2022, claiming he could no longer “justify” being a central part of it and wishing to “prioritize” other things in his life. Less than three months later, FTX and Alameda went bankrupt. An FTX partin...

According to the former CEO, at the time of filing for bankruptcy “FTX US was solvent.” An interview between the Former FTX CEO Sam Bankman-Fried ‘SBF’ and George Stephanopoulos aired on Good Morning America on Dec. 1. In the interview, SBF was insistent that FTX was not a “Ponzi scheme” but was “a real business.” The former CEO also denied any knowledge of FTX customer deposits being used to pay Alameda Research’s creditors, as reportedly claimed by Alameda’s CEO Caroline Ellison. According to him, he had no knowledge of “any improper use of customer funds”.  Bankman-Fried also admitted to not spending any time and effort trying to manage risk on FTX. He shared:   "There is something maybe even deeply wrong there, which was, I wasn't even trying. Like, I wasn't spending any time or effort trying to manage risk on FTX and that was obviously a mistake.” "If I had been spending an hour a day thinking about risk management on FTX, I don't think that would have h...