Troubled crypto firm FTX collapsed after being “run as a personal fiefdom of Sam Bankman-Fried”, a US bankruptcy court has heard.
The former FTX boss led the firm once valued at $40bn (£33.7bn), but lacked basic money controls, a lawyer leading the bankruptcy proceedings said.
The true state of FTX’s finances was only now being understood, he said.
He also claimed Mr Bankman-Fried’s team spent roughly $300m on holiday homes and property for senior staff.
Only now do we realise that “the emperor had no clothes,” attorney James Bromley said, describing the situation as “one of most abrupt and difficult collapses in the history of corporate America.”
FTX was a cryptocurrency exchange allowing people to buy Bitcoin and other cryptocoins in exchange for traditional money. Many customers used their FTX digital wallets like bank accounts, expecting their funds to be safe.
Judge John T Dorsey was given a detailed history of FTX and how it grew rapidly, moving countries multiple times in…