FTX Exchange Faces Whistleblower Allegations and CEO Sentenced to Prison
- FTX paid $25M+ to 6 whistleblowers for issues found.
- One whistleblower was an FTX.US executive.
- Whistleblowers alleged misleading regulators and investors.
- FTX Group lacked a complete employee list during bankruptcy.
- Former FTX employees resigned informally before collapse.
- FTX founder found guilty of defrauding customers, sentenced to 25 years in prison.
Summary :
Cryptocurrency exchange FTX paid more than $25 million to six whistleblowers who raised concerns about the company, according to a report by examiner Robert Cleary. One of the whistleblowers was described as an executive at FTX.US. The report stated that the FTX Group misled regulators and investors and lacked proper corporate structure. One whistleblower resigned and settled for over $16 million, while another settled for $1.8 million after alleging market manipulation and insider trading. The FTX Group did not have a complete list of employees at the time of the bankruptcy filing. Former FTX.US President Brett Harrison denied receiving $16 million and stated that he did not enter into any settlement apart from his exit agreement. FTX collapsed in November 2022, and its CEO, Sam Bankman-Fried, was found guilty of defrauding customers, lenders, and investors and was sentenced to 25 years in prison.
Sources :
- TheBlock
