FTX bankruptcy report: An Australian influencer once lent it more than $13 million to avoid lawsuits

According to a bankruptcy report from FTX, FTX had borrowed more than $13 million from an Australian internet celebrity named Alex Saunders in order to help him pay off investor debts, prevent potential damage to his reputation, and avoid litigation. The bankruptcy report from FTX stated that Alex Saunders, an Australian internet celebrity, received a loan of $13.2 million (AUD 17.5 million) from the exchange in July 2021. This advance payment was to help Alex Saunders pay off his debts to creditors. This report contradicts Alex Saunders' previous statement that he raised a large amount of funds (about $11 million) from retail investors, friends, and family, which were transferred to his controlled cryptocurrency wallet. At the time, Alex Saunders informed his supporters that the money would be used to develop a cryptocurrency protocol. However, it is alleged that he broke his promise after transferring a large amount of funds to FTX. According to investigator Robert J. Cleary's report, Saunders squandered the creditors' funds while trading on FTX, leading to some investors filing lawsuits.