Among the fired top executives is Gary Wang, one of the FTX founders who, under the deposed CEO and co-founder Sam Bankman-Fried, was chief technology officer, the newspaper reports The Wall Street Journal.
Nishad Singh, chief development officer, and Caroline Ellison, who headed the group’s trading arm Alameda Research, have also been forced out by new boss John J Ray, according to the paper.
Donated to the Democrats
Bankman-Fried himself voluntarily resigned as CEO on November 11, at the same time that FTX applied for bankruptcy protection.
Republican Senator Josh Hawley, from the state of Missouri, requested on Friday to see correspondence between federal authorities and the Biden administration as well as the Democratic Party’s campaign organization regarding FTX and Alameda Research, reports the Bloomberg news agency.
According to Hawley, Bankman-Fried allegedly donated more than $37 million to Democrats, which he claims may have influenced their views on the need for oversight and regulation of the crypto sector.
A committee in the US House of Representatives has also requested that FTX release documents and information by December 1 at the latest when investigating the collapse of the crypto platform.
Completely without control functions
The collapse of the crypto empire – which is being investigated by US prosecutors and the SEC – followed FTX taking out large unsecured loans from trading company Alameda to deal with liquidity problems.
According to Ray’s initial statements, his staff has so far been able to find only limited assets that can be realized to satisfy creditors. He has also described the business as completely without control functions where a very small group of inexperienced people led the work – largely via chat systems where messages are automatically deleted.
There is still a lack of a comprehensive control balance sheet of FTX and Alameda’s assets and liabilities when applying for bankruptcy protection.