A bankruptcy report from FTX (CRYPTO:FTT), the defunct cryptocurrency exchange, unveils that it loaned over $13 million to Australian influencer Alex Saunders in July 2021 to aid in repaying investors.

Contradicting Saunders' previous claims, the report alleges that the funds were squandered on trading activities on FTX.com, leading to potential litigation from investors.

Additionally, the report implicates an Australian law firm, referred to as Law Firm-5, in facilitating Saunders' loan and acquiring fintech businesses for FTX, allowing the exchange to bypass regulatory procedures.

Despite attempts to secure the firm's cooperation, it has refused to produce documents, further complicating the situation.