Lawsuit Claims FTX Funds Used for Inflated GDA Shares

[cryptoenthusiast]

According to the complaint, Bankman-Fried diverted customer funds from FTX.com to Alameda Research despite the firm’s mounting debt. Alameda then spent $1.15 billion on GDA shares, inflating valuations and externalizing losses onto FTX creditors.

The filing notes GDA, based in Kazakhstan at the time, provided financial documents that “bore no relation to reality,” while the country was in the midst of an energy crisis — red flags that SBF allegedly ignored.

The lawsuit argues SBF sought personal upside from GDA’s potential success, while FTX users and creditors shouldered the risks.

[kelson10]

FTX filing says GDA’s docs were basically fake SBF ignoring red flags during an energy crisis shows how reckless things really got. ️

[Nahid10]

Allegations that SBF chased personal upside while pushing risks onto users/creditors make the GDA deal look even worse.