Untangling the knotty empire of Bankman-Fried and FTX
With crypto exchange FTX short $8 billion and rushing towards bankruptcytake a moment to examine the task that may await liquidators and law enforcement agencies.
Below, we reproduce two slightly different attempts to map FTX’s corporate structure as of March 2022 (H/T Dan McCrum.)
There’s a lot going on there, so the most we can do in a hurry is to pick a few sights. Feel free to add your observations in the comment box.
FTX Trading Ltdincorporated in Antigua and Barbuda, is the founding company identified in the FTX legal disclaimers. West Realm Shires Inc is a US-facing branch, commonly referred to as FTX US, which is disconnected from Binance quickly abandoned rescue proposal. The US company in Delaware appeared to be fenced off from its intellectual property relationships (based in the BVI Alameda Research Ltd and Cottonwood Grove Ltd from Hong Kong) while the remainder was a multi-jurisdictional network of wholly-owned subsidiaries and inter-company loans.
The schematic also indicates that FTX Ventures LtdThe group’s VC fund with the Bahamas was wholly owned by a little-known Delaware holding company Paper Bird Incwhich in turn was fully owned by Sam Bankman-Fried. Paper Bird also appears to have owned 89 percent FTX Trading Ltd as well as having intercompany loans for Alameda vehicles.
Based in USA and Cayman Islands LedgerPrime entities, in the lower left of the diagram, stem from last year’s acquisition of FTX by hedge fund Ledger Holdings. FTX has rebranded LedgerPrime’s crypto futures platform as FTX US Derivatives LLC and said that the remaining work would become family office investing exclusively for Alameda Research.
Salameda doo (Hong Kong), 100 percent owned by Bankman-Fried chief of staff Jen Chan, gives the appearance of a group that has ties to Alameda and FTX’s US entities under service contracts.
Because of the division of nature public disclosure we cannot guarantee that the charts above accurately represent the current or historical structure of FTX. The full picture could only emerge from the Chapter 11 examiner’s report, which in the case of Lehman Brothers 18 months for delivery.
The SEC’s post mortem diagram Lehman’s corporate structure looks like a model of simplicity by comparison. . .
…so we could be waiting a long time.
#Untangling #knotty #empire #BankmanFried #FTX