• A former executive of FTX allegedly purchased discounted FTX tokens (FTT) for a charity, Polaris Ventures, before they were available to the public at $0.05 per unit.
• Anonymous sources claim that Polaris Ventures made millions from selling the FTT after it began trading publicly at $1 in 2019 and 2020.
• Ruairi Donnelly’s lawyer claims that the FTT was not FTX’s funds, but intended to pay his client’s unpaid wages.
Accusations Against Former FTX Executive
A report from the Wall Street Journal (WSJ) has accused a former executive of FTX, Ruairi Donnelly, of donating discounted FTX tokens (FTT) to charitable organization Polaris Ventures before they became available to the public at $0.05 per unit.
Polaris Ventures Allegedly Made Millions From Token Sale
Anonymous sources have claimed that Polaris Ventures made millions of dollars by selling these tokens after they began trading publicly at $1 in 2019 and 2020 while Donnelly was still working at FTX. The same sources concluded that most of its wealth initially came from this transfer in 2019.
Donnelly’s Lawyer Responds to Accusations
Donnelly’s lawyer has stated that the FTT did not belong to FTX and was intended to pay his client’s unpaid wages instead. They also noted that $30 million of Polaris‘ funds were stuck on FTX and that it is currently a major creditor in their bankruptcy case.
Alleged Attempt To Sell Bankruptcy Credits For Low Value
Anonymous sources cited in the report further suggest that Donnelly is attempting to sell bankruptcy credits for a fraction of their value.
It remains unclear if any illegal activity took place or if Donnelly committed any wrongdoing while carrying out his duties as an executive at FTX or with regards to Polaris Ventures donations; however, he may be liable for investigation if evidence appears otherwise.