CEO alleges FTX spent on cartoon and book about humans in ‘Pineapple House’.

Former executives of FTX are alleged to have spent millions of dollars on funding niche projects that are not related to crypto or Web3, including a $1.8 million property called “Pineapple House.”

A report released on June 26 by FTX’s restructuring chief and CEO, John Ray, outlined the uses of the customer funds that were allegedly misused. According to the report, this included “charitable” donations made by the exchange’s co-founder, Sam Bankman-Fried, and other former executives under the non-profit FTX Foundation.

The report detailed $700,000 worth of FTX Foundation “grants,” $400,000 of which were given to “an entity that posted animated videos on YouTube related to ‘rationalist and [effective altruism] material,” the report alleged. Another $300,000 grant was given to an individual to “[w]rite a book about how to figure out what humans’ utility function is (are).”

Ray alleged that these “grants” used FTX customer funds that were commingled in various bank accounts controlled by FTX, Alameda Research, and various other entities. The report also listed a $1.8 million property called “Pineapple House” among FTX’s $243 million Bahamian real estate portfolio, allegedly purchased using customer funds.

“damn, the real estate industry has been friendly to mr. squarepants”

— Molly White (@molly0xFFF) June 27, 2023

International broker Sotheby’s lists a similarly named property in the Bahamas, although it is unknown if it is the same Pineapple House listed in the report.

Other uses of the alleged commingled customer funds detailed by Ray included around $20 million sent to the nonprofit organization Guarding Against Pandemics and “related entities.” Guarding Against Pandemics advocates for investments to prevent pandemics such as COVID-19, as per its website. According to Ray, it “worked closely” with the similarly named political action committee Guarding Against Pandemics PAC run by Gabe Bankman-Fried — the younger brother of Sam Bankman-Fried.

Related: Tokenized FTX claim is used as collateral for a loan

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