Bankman-Fried directed FTX execs to mask Alameda's multi-billion dollar liability with an account referred to as “the weird Korean account.'
Crypto exchange FTX masked Alameda’s large liability using an account referred to as “the weird Korean account” by former CEO Sam Bankman-Fried, according to a CFTC complaint.
Alameda’s multi-billion dollar liability with the exchange was previously stored in an internal account in the FTX database asFormer CEO of FTX Sam Bankman-Fried directed company executives to reallocate Alameda Research's large liability with the exchange to"the weird Korean account" to mask its liability with the firm, according to a complaint by the Commodities Futures Trading Commission.
The CFTC, the U.S. Securities and Exchange Commission and the U.S. Attorney's Office for the Southern District of New York all brought numerous charges of fraud against Bankman-Fried on Tuesday over the collapse of FTX and Alameda. Bankman-Fried is currently being held in jail in the Bahamas awaiting an extradition hearing, after not receiving bail.
Bankman-Fried directed company executives to reallocate funds to a Korean account he referred to as “our Korean friend’s account” and “the weird Korean account." The Korean account belonged to Alameda but was not tagged with an Alameda identifier, which enabled Alameda's negative balance to be hidden on FTX ledgers, the CFTC said. The account was instead described as"FTX fiat old," the complaint said.
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