It seems that FTX, a cryptocurrency exchange, has been involved in a scandal in which its founders and key employees received large sums of money, mostly from a subsidiary of Alameda Research.
The total amount received was $3.2 billion, with $2.2 billion going to FTX creator Sam Bankman-Fried.
Other recipients of the funds include former FTX technical director Nishad Singh, FTX co-founder Gary Wang, former FTX Digital Markets CEO Ryan Salame, former Alameda co-CEO Sam Trabucco, and former Alameda CEO Caroline Ellison.
Several of these individuals, including Bankman-Fried, Wang, and Ellison, have pleaded guilty to fraud and are cooperating with the authorities.
However, it is not yet clear how much compensation will be paid to those affected by the scandal.
The scandal has also revealed that FTX invested over $240 million in luxury real estate purchases, political and charitable donations, and transfers to subsidiaries in the Bahamas and elsewhere.
Additionally, Alameda Research borrowed $9.3 billion from customer accounts before the crash, which may have contributed to the shortfall in client accounts.
The scandal has led to an indictment of Bankman-Fried on eight felony charges, including wire fraud, conspiracy to commit goods and securities fraud, conspiracy to commit money laundering, and violation of campaign finance. Bankman-Fried has pleaded not guilty and was released on $250 million bail.