FTX CEO Claims Excessive Spending on Cartoon, Book, and ‘Pineapple House’

Former executives of FTX, a prominent cryptocurrency exchange, are facing allegations of extravagant spending on unrelated projects, including a notable $1.8 million property referred to as the “Pineapple house.” The accusations were made by FTX CEO John Ray in a report released on June 26, where he outlined the alleged misappropriation of customer funds.

The report claims that co-founder Sam Bankman-Fried and other former executives made “charitable” donations through the nonprofit FTX Foundation, with $700,000 in grants mentioned. Among these grants, $400,000 was reportedly given to an entity creating animated videos on YouTube related to rationalist and effective altruism concepts. An additional $300,000 grant was allocated to an individual working on a book exploring the determination of humans’ utility function.

Ray further alleges that these grants were funded using customer funds, which were commingled across various bank accounts controlled by FTX, Alameda Research, and other entities. The report also reveals a $1.8 million property named “Pineapple House” within FTX’s $243 million Bahamian real estate portfolio, purportedly purchased with customer funds.

While a similarly named property exists in the Bahamas, it remains unclear if it is the same Pineapple House mentioned in the report.

The report by Ray highlights other uses of commingled customer funds, including around $20 million directed to the nonprofit organization Guarding Against Pandemics and its related entities. Guarding Against Pandemics advocates for investments in pandemic prevention, such as measures against COVID-19.

According to Ray, the organization worked closely with the Guarding Against Pandemics PAC, a similarly named political action committee led by Gabe Bankman-Fried, the younger brother of Sam Bankman-Fried.

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