Former FTX employee tells SBF about extravagant spending and religious cults in the company’s daily life

A former employee of cryptocurrency change FTX has apparently revealed the company’s overspending, obsessive office tradition and grueling working hours that led to the firm hiring a psychiatrist a yr earlier than its collapse.

Daniel Cloud, who labored in the advertising and marketing division of FTX, revealed a thread Dec. 13 on Twitter, saying FTX employed him in October 2021 and he resigned about two weeks in the past.

1. My ex – FTX

Two weeks in the past, I formally resigned as an employee of FTX.

— Dani Cloud (@daniiicloud)

“Things simply felt incorrect. Like a cult,” Cloud wrote, describing the feeling he had when he was signed to the change. A former employee in contrast FTX to fraudulent enterprises resembling VIP music competition Fyre Festival and well being expertise firm Theranos.

He famous that he had “by no means heard” of FTX or its founder Sam Bankman-Fried when he was employed, however admitted that “each employee at FTX was obsessed” with him.

“I believed it made sense. The boy was younger, the rules revolutionary, the concepts golden […] who was I to dispute that?’

Daniel Cloud (entrance row, middle left) pictured with different US FTX workers in February 2022. Image: twitter: from FTX USA President Brett Harrison

Cloud acknowledged that the “greatest manner” to get a job at FTX is to “develop up being the employee’s spouse”. Apparently, it might be potential to achieve an govt place inside “a month or two”.

“Those who challenged him misplaced,” he mentioned.

The weekend was additionally a “joke,” based on Cloud. “The work week was Monday by way of Sunday,” he mentioned. An employee was “reprimanded” for asking if the firm would give workers the time off for Thanksgiving.

Cloud with an unknown particular person at the SALT Crypto Bahamas convention in May. The occasion was co-hosted by FTX. Photo: Instagram

Cloud began as a Know Your Customer (KYC) analyst at FTX US, the company’s US department, and was promoted to a full-time advertising and marketing position in May 2022. The new place required him to “work lots of time in the Bahamas. “

Extravagance and luxurious of FTX

“The complete operation was symbolic and extremely ineffective,” Cloud mentioned of the change’s Bahamas headquarters. “I had no thought what cash may purchase.”

He alleged that FTX purchased or rented multi-million greenback houses for its executives that served as lavish celebration venues. They have been additionally entitled to have personal cooks.

11. Half a dozen residences rented/bought by FTX free of charge entry to workers… In addition to paid stays in luxurious inns.

— Dani Cloud (@daniiicloud)

Employees obtained “paid lodging in luxurious inns” in addition to “half a dozen residences” rented or bought by the firm.

FTX’s Bahamas workplace had “24/7 catering” with perks for workers that included free groceries, one journey to the barber a month and biweekly massages.

A screenshot of a video taken by Cloud depicting the FTX work celebration at Albany, Bahamas. Bankman-Fried lived domestically. Photo: Instagram

The Commodity Futures Trading Commission (CFTC) filed a lawsuit towards Bankman-Fried on Dec. 13, alleging that it used funds from FTX shoppers to purchase luxurious actual property, amongst different issues.

FTX reportedly spent greater than $250 million on actual property, shopping for 35 properties in the Bahamas, based on a Dec. 13 report by CNBC.

Why was the psychiatrist employed by FTX?

Because of the heavy workload calls for, Cloud mentioned, Bankman-Fried employed a psychiatrist, Dr. George Okay. Lerner.

A now-deleted profile of Bankman-Fried, written in September by enterprise capital agency Sequoia Capital, described Lerner as “the man who is aware of greatest; [Bankman-Fried]”, and “therapist from FTX”.

Cloud mentioned Lerner was “employed as a coach” for inquiries about the state of the enterprise and was thought-about “vital” to FTX’s employee satisfaction and expertise retention technique, however the former employee alleged that Lerner requested intimate questions about her relationship together with her son-in-law. . .

He additionally alleged that administrative workers have been “pressured into illegally sending prescriptions to Nassau” that have been initially written in California and Florida.

During a December 13 congressional listening to, FTX CEO John Ray mentioned there was “no administrative document” at the firm and that many invoices and expense receipts have been shared through the Slack messaging app.

FTX additionally used Quickbooks accounting software program, based on Ray, who mentioned he had “nothing towards Quickbooks,” including that it was not a proprietary device for dealing with the funds of a “multi-billion greenback firm.”

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