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FTX customers sent money to a fake electronics retailer with a website full of misspelled words that was key to funding SBF’s Alameda, report says

Sam Bankman-Fried outside the federal courthouse in Manhattan on Thursday.Gina Moon/Reuters

  • Sam Bankman-Fried’s FTX was letting customers wire money to North Dimension, a shadowy company that operates a fake electronics retail website, NBC News reported.

  • The SEC argued that funds transferred to North Dimension would ultimately fund Alameda Research’s trading activities.

  • North Dimension’s website was taken down, but it misspelled the word and claimed to sell laptops and phones.

Amidst the sprawling drama of Sam Bankman-Fried’s crumbling crypto empire, low profile North Dimension plays a key role in getting FTX’s client funds into the hands of affiliate Alameda Research and SBF’s other ventures fulfilled.

Also, according to NBC News, North Dimension operated a fake online electronics retailer, which is now disabled and archived. The website does not disclose any affiliation with Bankman-Fried or his company.

The SEC complaint against former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang admits wrongdoing, but FTX is asking its customers to donate their funds if they want to trade on the cryptocurrency exchange.・It claims to have instructed Dimension to send money. However, they were then used to fund Alameda’s trading activities.

“Bankman-Fried instructed FTX to have its customers transfer funds to North Dimension to conceal the fact that the funds were being transferred to accounts controlled by Alameda,” the SEC said in its complaint.

FTX filed for bankruptcy last month after reports surfaced that billions of dollars in customer funds were transferred to Alameda.

An NBC News investigation found that the North Dimension website claimed to sell devices such as cell phones and laptops from an address in Berkeley, California.

North Dimension’s website, which had many misspellings and nonsensical product prices, aims to become the most popular website for mobile phone purchases by offering a transparent purchasing process. said.

According to NBC News, some of the items featured on North Dimension were showing “sale” prices well above their regular prices. For example, there was also one “iPad 11 ich” listed and his mobile device priced at $899 while the regular price is $410.

Customers are finding it difficult to complete purchases on your website. According to the report, when I click on a product, I get the following message:

A DomainTools analysis reviewed by NBC shows that the North Dimension site was created in November 2021 by an unidentified Hong Kong registrant.

Most recently, just a month before FTX imploded, a second North Dimension domain surfaced online identifying itself as a financial services site but without contact information.

Bankman-Fried is currently under house arrest at his parents’ home in California. He was extradited from the Bahamas to the United States last week after being indicted on a series of financial crime charges.

Read the original article on Business Insider