FTX’s trading arm Alameda Research should be repaid nearly $53 million for a loan originally made in 2021 to Deltec International Group, a Delaware judge ruled on Wednesday.
The court is attempting to unwind the affairs of the FTX after it filed for bankruptcy in November, complicated by an apparent lack of reliable records kept by the crypto exchange.
Deltec, a Cayman Islands company whose banking arm serves stablecoin company Tether, “shall and is hereby authorized and directed to hisse to Alameda an amount equal to USD 52,859,644,” plus $10,538 in interest per day, bankruptcy judge John Dorsey said in an order.
The original payment of 50 million in USDT, Tether’s stablecoin pegged to the U.S. dollar, was made from Alameda to Deltec in 2021. The contract was approved by FTX Digital Markets’ co-Chief Executive Officer Ryan Salame, purporting to act as director of a further company called Norton Hall, though according to earlier court filings by FTX he never held such a position and wasn’t authorized to act as such.
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John J. Ray III, a restructuring expert who took over as FTX CEO in November, has repeatedly bemoaned poor governance prior to his tenure. In a Sunday filing, Ray said that Alameda had fabricated portfolio reports, and that records of loans and other financial transactions made by the company were “inaccurate, contradictory or missing entirely.”