FTX bankruptcy report: An Australian influencer once borrowed more than $13 million from it to avoid lawsuit

Odaily News According to News.bitcoin, according to the FTX bankruptcy report, FTX had loaned more than $13 million to an Australian influencer, Alex Saunders, to help him repay investor debts to prevent potential damage to his reputation and avoid litigation. FTX's bankruptcy report stated that Australian influencer Alex Saunders received a loan of $13.2 million (A$17.5 million) from the exchange in July 2021. The advance was reportedly intended to help Alex Saunders repay debts with creditors. The report contradicts Alex Saunders' previous statement that he raised a large sum of money (about $11 million) from retail investors, friends and family. The funds were transferred to a cryptocurrency wallet under his control. At the time, Alex Saunders informed his supporters that the money would be used to develop crypto protocols. However, he allegedly broke his promise after transferring a large amount of funds to FTX. According to investigator Robert J. Cleary's report, Saunders squandered creditors' funds while trading on FTX.com, leading to lawsuits from some investors. FTX was reportedly willing to loan Saunders millions of dollars in order to avoid reputational damage and avoid litigation.