FTX used corporate funds to purchase employee homes, new filing shows

The logo of FTX is seen on a flag at the entrance of the FTX Arena in Miami, Florida, November 12, 2022.

Corporate funds were used to purchase homes and personal items in the name of employees and advisors of FTX, according to a bankruptcy declaration.

It is not known what the source of those funds was.

FTX CEO John Ray III said in a declaration to the court that accounting for spending was done in a way that was not appropriate for a business.

Corporate housing arrangements are not unusual, especially in high cost areas, but Ray noted that certain real estate was recorded in the personal name of the employees.

The home that Bankman-Fried and other FTX executives lived in was listed a few days ago for just under 40 million dollars. The onetime billionaire and FTX founder is said to have owned the penthouse.

Ray said that he did not have confidence in the balance sheet statements of FTX's companies.

Bankman- Fried was unavailable for comment.

Ray claimed to have 40 years of experience in the corporate and bankruptcy world.

It will take some time before the financial statements can be prepared, Ray wrote.

FTX and other companies have filed for Chapter 11 protection.