FTX provided a loan of over $13 million to an Australian influencer to avoid litigation

2024-06-09 14:22:07

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ChainCatcher news, according to News.bitcoin, based on the FTX bankruptcy report, FTX had provided a loan of over $13 million to Australian influencer Alex Saunders in July 2021, aimed at helping him repay debts to investors to prevent potential damage to his reputation and avoid lawsuits.

'This report contradicts Alex Saunders' previous claims, as he had stated that he raised a large sum of money (approximately $11 million) from retail investors, friends, and family. This money was transferred to a cryptocurrency wallet under his control. At the time, Alex Saunders informed his supporters that the funds would be used to develop a cryptocurrency protocol. However, he breached that promise after transferring a large amount of money to FTX. According to investigator Robert J. Cleary's report, Saunders squandered creditor funds while trading on FTX.com, leading some investors to file lawsuits. To avoid reputational damage and litigation, FTX was willing to offer Saunders millions of dollars in loans.

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