As the implosion of crypto exchange FTX continues, new claims about the “gang of kids” responsible for the $US32 billion disaster are emerging — with allegations of amphetamine use and a freewheeling, 10-person “sexual polycule” inside the luxury Bahamas penthouse that served as the doomed operation’s headquarters.
Sam Bankman-Fried, 30, is now facing criminal investigation in the Bahamas, as well as regulatory probes in the US, over the collapse of FTX and around 130 affiliated entities, including controversial trading firm Alameda Research.
Attention is now turning to the central role of Alameda and its CEO Caroline Ellison, 28 — Mr Bankman-Fried’s rumoured sometimes-girlfriend — a Harry Potter obsessed, amphetamine-using, Stanford mathematics graduate.
FTX is alleged to have secretly transferred up to $US10 billion of customer funds to Alameda to fund risky cryptocurrency trades prior to its collapse.
According to a bombshell report by CoinDesk, Ms Ellison and Mr Bankman-Fried were part of a “cabal of roommates” who ran the crypto empire and “dated” each other, while living in a $US40 million penthouse in the Bahamas’ exclusive Albany resort.
Many of the 10 roommates, including Ms Ellison, are Mr Bankman-Fried’s former co-workers from trading firm Jane Street, while others he met at the Massachusetts Institute of Technology.
Also living in the house were FTX co-founder and chief technology officer Gary Wang and director of engineering Nishad Singh. “All 10 are, or used to be, paired up in romantic relationships with each other,” CoinDesk reported.