The FTX Crisis: Bankman-Fried Under Fire For Fund Mismanagement
A report has surfaced that details communications between the United States and Bahamian officials regarding investigations into FTX. The report indicates that officials from the Bahamas Financial Services Board (SBF) were warned by several officials about the significant amount of bad loans accumulated by Alameda Research against FTX.
According to the report, one of the FTX executives, designated as CC-2, was reportedly alarmed upon learning from another executive (CC-1) that the hedge fund Alameda Research owed $13 billion to FTX.
However, the SBF disregarded these warnings and argued that the firm would raise more capital before crypto prices increased, thereby solving the problem.
Was SBF Exploiting Customer Funds?
The Bahamas Financial Services Board (SBF) has been accused of using stablecoin issuer Tether (USDT) to print money out of thin air. Tether, however, has denied these claims, despite losing its largest customer, FTX. At its peak, FTX had minted over $36 billion in USDT, which represented nearly half of Tether’s entire circulating supply.
According to court filings, some of the biggest investors in FTX include football star Tom Brady, New England Patriots owner Robert Kraft, and fashion model Gisele Bündchen. Additionally, well-known funds run by Tiger Global, Thoma Bravo, Sequoia Capital, SkyBridge, and Third Point, among others, were also investors in FTX.
Despite having high-profile investors, FTX was unable to recover due to the heavy losses incurred over the years from Alameda Research. Reports indicate that FTX customers’ funds were used for political donations, to sponsor Formula One races, and for hosting high-end parties around the world.
As a result, the $5 billion in assets recovered by the new FTX officials, including acting CEO John Ray III, cannot make up for the losses incurred by Alameda.
It remains to be seen whether FTX creditors will have the patience to wait until the end of the next crypto bull market, in order to recoup their investments. Notably, this is a significant uncertainty, especially considering that many of the tokens on FTX’s balance sheet are illiquid, including the FTT token.
Sam Bankman-Fried Says He Didn’t Steal Funds! Explains What Went Wrong
Sam Bankman-Fried, the former CEO of the troubled cryptocurrency exchange FTX, has explained that he did not ‘steal’ funds. He added that FTX could have made customers considerably whole if it had been allowed a few weeks to raise the required liquidity. On Thursday, SBF posted a lengthy explanation on Substack.
According to SBF, at the end of the day, the FTX saga is somewhere between that of Voyager and Celsius.
He said, “I didn’t steal funds, and I certainly didn’t stash billions away. Nearly all of my assets were and still are utilizable to backstop FTX customers. I have, for instance, offered to contribute nearly all of my personal shares in Robinhood to customers–or 100%, if the Chapter 11 team would honor my D&O legal expense indemnification.”
SBF also stated that FTX US is still completely solvent and ought to be able to repay all client money. I am dedicating practically all of my personal assets to consumers while FTX International has many billions of dollars in assets.
He said that FTX International still has substantial assets, with about $8 billion in assets of variable liquidity as of when Mr. John Ray took over. There were also multiple other prospective finance offers, including signed LOIs after the chapter 11 filing for a total of nearly $4 billion, he added.
SBF said, “I believe that, had FTX International been given a few weeks, it could likely have utilized its illiquid assets and equity to raise enough financing to make customers substantially whole.”
According to court documents and recent developments, SBF wants to keep ownership of the roughly 56 million Robinhood shares, which are valued about $450 million, in order to pay his legal bills. Since then, the Justice Department has seized the contested shares.
Tether Denies Bailout Request From Ex-FTX CEO Bankman-Fried
As investigators around the world try to gather facts about the FTX and Alameda implosion, stablecoin issuer Tether (USDT) has claimed that SBF, the CEO of FTX, requested a bailout in the billions before filing for bankruptcy protection.
According to a report by Forbes, SBF reportedly wanted Tether to return a favor as one of its largest clients. Moreover, FTX had minted over $36 billion in USDT, almost half of Tether’s entire circulating supply, during its peak-performing period.
Nonetheless, Tether officials declined the request after SBF reportedly declined to outline the details of the economic help he needed. According to Paolo Ardoino, Tether’s Chief Technology Officer, SBF sounded uneasy with the request, which was never the case before.
“He suddenly asked for something that he had never asked for before, and he wasn’t talking about $10 million. The way he was talking suggested that he had a big issue. His request was in the billions,” Ardoino said.
The requests by SBF are not outrageous as he publicly requested bailout funds from the Binance cryptocurrency exchange. However, while Binance CEO Changpeng Zhao (CZ) declined the bailout, FTX’s FTT token plummeted drastically in a few hours, liquidating billions of dollars.
Tether intends to clarify its relations with FTX and SBF as investigators close in on blockchain activities that led to the exchange’s collapse.
Moreover, blockchain data suggests that Tether could have minted for SBF’s companies as high as $500 million in a single transaction. As such, calls for a Tether USDT audit have increased lately to ensure that every minted stablecoin is redeemable.
A Call For Transparency
Following the sudden collapse of FTX and its native token FTT, crypto traders have become cautious about holding and trading most altcoins. As a result, calls for greater transparency have increased, despite the fact that most crypto companies operate on public blockchain technology. Furthermore, Coingecko has been listing the availability of crypto exchanges’ reserve data.
However, crypto traders remain skeptical about security even with reserve data publicly available. Additionally, centralized exchanges hold the keys to users’ coins and can potentially withdraw funds without warning. As a result, decentralized exchanges and non-custodial wallets have gained popularity in recent weeks, as seen with Binance-backed Trust Wallet and its TWT token.
Meanwhile, Tether (USDT) is expected to remain on regulators’ watchlist due to its control over minting programs, similar to the Federal Reserve. However, the creation of the digital dollar is expected to bring more stability and reduce irregularities in the stablecoin industry.
Is Sam Bankman-Fried The Mastermind Behind New Meme Token ‘BONK’?
Bonk (BONK) is a new meme token with a Shiba Inu emblem that airdropped half of its total supply of 56 trillion tokens. During an airdrop, a cryptocurrency releases a free supply of its token to a number of crypto wallets as a tactic to acquire users or as a reward for community members.
The Solana community has shown enthusiasm for BONK, leading to an uptick in SOL. Its price has increased 17.7% in the last day and 25% in the last week, reaching $13.85 at press time. Solana NFT collections received around 20% of Bonk’s airdrop supply or about 300,000 tokens.
According to CoinGecko, the Shiba Inu-themed meme coin also increased over 100% in the previous 24 hours.
However, some people seem to think that disgraced FTX founder Sam Bankman-Fried is the brain behind the new meme coin. Here’s Why.
Bitboy Crypto Says SBF Is Behind BONK
Ben Armstrong, known as “Bitboy Crypto” and a well-known crypto influencer and YouTuber, has stated that SBF and Alameda are responsible for Bonk.
He said, “If you don’t think it’s possible SBF/Alameda is behind BONK, you are intellectually dishonest. I’m not saying it’s guaranteed, but the more I look at it the stronger I believe the possibility is.”
However, this opinion is not shared by those who commented on the post, with some saying Armstrong is ‘deranged’ and obsessed with SBF.
Bonk has gained traction, but it is possible it will follow the trend of other meme tokens, experiencing a pump followed by a severe drop with little or no rebound. However, it has helped the Solana ecosystem gain momentum at a time when some considered it dead.
This is the most encouraging news for the Solana market in the past two months since the collapse of cryptocurrency exchange FTX in early November, which caused SOL’s price to drop and interest in the area to wane.
Sam Bankman-Fried Pleads Not Guilty, Task Force Formed To Recover Billions of Dollars
Defunct crypto exchange FTX has been attributed to a liquidity crunch on millions of crypto traders and several digital assets firms. With billions of dollars at stake, the Fed has come out guns blazing to help recover customers’ funds from FTX. Notably, the US Federal Government has created a task force to investigate the exchange and help customers recover lost funds.
Furthermore, the FTX implosion has awakened regulators’ attention to cryptocurrency projects, which are said to operate in a predatory environment. For instance, the SEC has warned all crypto companies must adhere to strict guidelines, including robust disclosure policies, financial reporting obligations, and stringent internal governance protocols.
Additionally, the Commodity Futures Trading Commission (CFTC) has also taken a hard stance on crypto companies, announcing new rules and laws that must be adhered to.
FTX Task Force launched by Attorney’s Office
The task force, dubbed the FTX Crypto Task Force, is composed of members from the Federal Trade Commission and other government agencies.
The United States Attorney’s Office for the Southern District of New York (SDNY) has created the FTX Task Force in order to pursue lost customer funds, and successfully manage investigations as well as legal action associated with this exchange’s downfall.
Damian Williams, the Manhattan U.S. Attorney, declared in a statement that they are unrelentingly endeavoring to address the FTX scandal: “We are working around the clock here.” It is evident that the Southern District of New York will not rest until this situation has been resolved successfully and justice served.
The task force has already identified several Crypto companies that may have been affected by FTX’s actions, and they are now working to securely recover customers’ funds. The task force is also collaborating with Crypto companies to identify further safeguards and measures that can be implemented to protect customers’ investments.
The founder of FTX, SBF, pleaded not guilty in U.S. court to charges of fraud and money laundering. SBF’s lawyers claim that their client has been wrongfully charged, stating
“SBF had no knowledge or intent to commit any alleged fraud,”
Meanwhile, the SBF legal team submitted a letter on Tuesday requesting that the identity of two people who are attempting to guarantee his bail be redacted. They contended there is no motive behind making this information public and that it should not be unveiled to the general populace.
Bankman-Fried’s lawyers asserted that the disclosure of these two people’s identities would jeopardize their security and put them in danger.
Sam Bankman-Fried Cashes Out $684k Worth of Crypto – Is This Hinting At Escape Plan?
Sam Bankman-Fried, a co-founder and former CEO of FTX, was arrested in the Bahamas on December 21. He was eventually released on a $250 million bond. Following his posting of a bond, SBF has been enjoying a comfortable and opulent lifestyle with his parents. Even while this is no match for his previous lifestyle, the crypto community on Twitter has questioned the luxuries he is affording, especially after seeing one of the biggest crypto meltdowns in history.
As per court orders, SBF is currently being monitored and required to wear an ankle monitor to track his activities. He is not permitted to leave his residence. He is not permitted to carry a firearm or make any transaction worth more than $1,000, and his passport has been seized.
SBF Reportedly Cashes Out $684k After Being Released On Bail
After being released on bail, Sam Bankman-Fried is reportedly cashing out large amounts of cryptocurrency. According to the on-chain inquiry by DeFi instructor BowTiedIguana, SBF cashed out $684,000 in cryptocurrency to exchange in Seychelles while he was under house arrest.
On December 29, BowTiedIguana reported on Twitter about a series of wallet transactions that were allegedly connected to SBF, implying that the former FTX CEO may have violated release conditions that prohibited him from spending more than $1,000 without a court order.
SBF’s public address (0xD5758), according to BowTiedIguana’s study, transmitted all of the remaining Ether to a newly established address(0x7386d). It was also stated that SBF took over the premises previously occupied by Sushiswap inventor Chef Nomi in August 2020.
Has SBF Violated Bail Conditions?
BowTiedIguana announced that he had called attorneys from the US Securities and Exchange Commission to check into the situation. Whether or not the transactions are connected to SBF, some industry enthusiasts argue that the creator of FTX may not have broken the terms of his bail release.
One observer speculated that SBF’s action might not qualify as spending money since those are already his assets.
Additionally, it was speculated that SBF was actually Chef Nomi, the unnamed co-founder of Sushiswap. SBF, however, had asserted in September 2020 that he was not involved in the building of Sushiswap.
What does the future hold for FTX and SBF?
There is no concrete proof that SBF has cashed out such a sizable amount of cryptocurrency. Even if he has, SBF does not appear to have violated the bail’s conditions. However, the lawsuit against SBF and FTX for the largest cryptocurrency crash in history is still ongoing. SBF faces eight charges and may spend 115 years in prison, but there is “a lot to play out” before he receives a final sentence in the next months or perhaps years.
Sam Bankman-Fried Meets ‘the Big Short’ Author Michael Lewis
The former CEO of the now-defunct FTX cryptocurrency exchange, Sam Bankman-Fried, who is currently in California under house arrest, has met with The Big Short author Michael Lewis. According to The New York Post, the sudden visit by Lewis on Tuesday has sparked rumors that the renowned novelist may be planning to publish a book about Sam Bankman-Fried and the failure of his cryptocurrency company FTX.
Lewis is the author of a number of books, including “The Big Short,” a best-seller that describes how the housing bubble contributed to the financial catastrophe of the late 2000s, and “Moneyball,” which described how Oakland A’s general manager Billy Beane used analytics to create a squad.
According to The Ankler report, Lewis and Bankman-Fried are thought to have been in touch for roughly six months, long before any financial irregularities were found. This wasn’t made public, though, until FTX fell apart. Lewis reportedly traveled to the 30-year-old CEO during the six months before the SBF was arrested on federal charges and spoke with him in-depth.
The author hasn’t written anything yet, but his agency indicated in an email that the plot has advanced to the point that they can’t wait any longer. Bankman-Fried may stand to gain financially if Lewis’ upcoming book is turned into a movie like The Big Short, although it is uncertain at this time.
On November 11, FTX, formerly the third-largest cryptocurrency exchange in the world, declared bankruptcy. Later, it came to light that the exchange was struggling with a $9.4 billion hole caused by money mismanagement.
Following the formal filing of criminal charges against Bankman-Fried by US prosecutors, he was taken into custody in The Bahamas earlier this month. The crypto entrepreneur was eventually extradited to the US after a tumultuous week to face a slew of accusations.
Sam Bankman-Fried Denied Bail! Will He Face Lifetime Imprisonment
The house of cards built by SBF was meant to fall, but it was also considered one of the safest crypto spaces, which is why the fall was so shocking for investors. In a series of events after SBF’s arrest in the Bahamas, he was pressed with 8 criminal charges by US lawmakers and was denied bail until his extradition hearing on February 8.
Almost immediately after his detention, SBF’s lawyer asked for his client’s release in exchange for $250,000 cash and an ankle tag. However, Chief Magistrate Joyann Ferguson-Pratt has stated that releasing SBF carries a substantial risk of him fleeing.
What To Expect From The Feb 8th Hearing
Many were caught off guard by the arrest of Bankman-Fried on Monday, but it highlights the significance of both his crimes and the evidence the US government was able to gather against him. The indictment from US prosecutors, which included eight counts against Bankman-Fried in the disclosed documents, led to his detention.
SBF, the creator of FTX, has been accused of covering up the company’s money-mixing practices with Alameda Research, the “special treatment” granted to Alameda, and its use of client funds for “luxurious real estate acquisitions,” political contributions, and other business endeavors.
In addition, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have both filed complaints against Bankman-Fried for allegedly scamming investors.
Will SBF Receive A Lifetime Imprisonment Sentence?
If SBF is found guilty on all charges against him, he could face a possible maximum sentence of 115 years in jail, according to legal experts. The severity of the allegations is underscored by the fact that the 30-year-old, who was the public face of the crypto sector, may spend the rest of his life behind bars.
Former assistant U.S. attorney Nick Akerman, who focused on white-collar crime prosecution in the Southern District of New York, believes SBF will be facing a significant amount of time in prison.
However, according to federal law, the maximum sentence for a single offense of wire fraud is 20 years in prison.
Wrapping Up
It is important to note that until SBF is proven guilty, he must be presumed innocent. He seems to be laying the groundwork for a strong legal defense, as he has been in the Bahamas since November and his parents, both law professors at Stanford University, were present at his initial hearing on Tuesday.
FTX Falls Toon Finance (TFT) Joins Binance To Clean Up Sam Bankman-Fried
Recently, many cryptocurrency users lost a lot of money when the platform Celsius went bankrupt. Our team did some research to see what would happen to your assets on different types of crypto platforms in case they go under. Here’s what we found out.
After Celcius, it was FTX that went next, and it looks like multiple CEXs or centralized exchanges simply cannot keep the peoples’ money. In this case, there should be alternatives like decentralized exchanges since centralized ones are doing horrible and affecting the whole crypto industry.
See why CZ Binance leads defi investors to Toon Finance (TFT)
If you are new to the cryptocurrency industry, you may be wondering why Celsius- one of the biggest companies in crypto- went bankrupt. With a market cap of over 5.5 billion US dollars, Celsius is currently facing multiple allegations, the most interesting being that they ran a Ponzi scheme.
Going bankrupt is devastating for any company, but there are mitigation tactics and policies in place to protect your invested money or cash kept within the company. Do your research before investing large sums of money!
With the current trend with CEXs or centralized exchanges, it is obvious that it is no longer a question of if but a question of when a CEX will go bankrupt or face liquidity issues where the result is the same, all your money disappears.
Right now Binance is the best example of how to run a centralized exchange but with just a press of a button, CZ, owner of Binance, can choose to just disappear with all our money.
Bankruptcy and liquidity problems aren’t new but new centralized exchanges pop up like mushrooms after a rain despite the absolute fact that the inherent problem with human greed and liquidity requirements and assurances have not yet been solved by CEXs when decentralized exchanges like Toon Swap doesn’t have this problem.
What is Binance and what do they do?
Binance is one of the largest cryptocurrency exchanges in the world and they offer a wide range of services, such as trading, margin trading, lending, and they are even trying to remedy their problem as a CEX by building Binance DEX.
The problem with Binance DEX
The big and glaring problem with Binance DEX is that it is Binance and Binance makes money off of its CEX or central exchange aspect. So from this we know there is a conflict of interest that Binance has yet to address.
Is Binance DEX just a PR move after FTX? It is obvious if it is so since the timing is too good and trust should be in short supply these days.
Binance CEX vs DEX
Binance can go bankrupt in a few ways. One way is through fraudulent activities, like the Ponzi scheme that caused the bankruptcy of Celsius and FTX with Sam Bankman-Fried leading the scam.
Another way is through liquidity problems. When Binance doesn’t have enough cash to meet its obligations, it can go bankrupt similar to what happened with FTX. Finally, Binance can go bankrupt if it’s not able to repay its debts.
The ones mentioned above are ways Binance can go bankrupt in a normal fashion, but what if Binance decided to show its true colors and became malicious? Are there more ways to lose your tokens with Binance? The unfortunate truth of the matter is, there is an easy way, it’s to simply take your money and go.
We usually don’t want regulation in crypto since it is a decentralized space and thrives on that. But if there really isn’t a choice, it’s better to be completely backed and regulated by the government than being like FTX and Binance where they are only partially regulated with no guarantees to its customers.
Crypto exchanges are not like banks, they do not have the backing of a government. When things eventually fall like how they seem to be guaranteed with CEXs, they will not be able to provide the users’ money no matter what guarantees they give before the fact because their creditors will want to get paid first at the cost of the users.
Does Binance guarantee and insure your money?
To some extent, it is possible that you will receive some of your money due to Binance being a good example of how a centralized exchange should be run. But you need to remember that Binance’s creditors will get their take first. End users are always the last ones to get a piece if they ever get any.
Keep your money secure with decentralized exchanges DEX
The heart of the matter is this, CEXs have two inherent problems that cannot be removed or else they wouldn’t be called centralized exchange. One is that CEXs aggregate the money, it’s all in “one” location and under the control of a few people.
Imagine all that money under the thumb of someone you don’t know, how sure are you that they won’t risk jail when all the security in place is protected by someone from the inside where the threat is coming from in the first place!
The second inherent problem is liquidity. A central exchange must have liquidity so that if everyone on the platform jumped ship, they can return everyone’s money. And even if a company manages to ensure that they have enough assets to assure liquidity, what if someone simply spends the money like what happened with FTX?
Users Flock to Toon Finance here is why
DEXs are the answer simply because they do not have the problems that CEX’s have, they do not need liquidity and they are not governed by any single entity like banks. Instead they are decentralized, meaning that the users decide how and where the money is spent.
Decentralized exchanges are not custodians, they take a non-custodian role meaning that your money is not in their hands at any point of the transaction. This makes them much more secure than CEXs and therefore the best option to make sure that your money is safe.
Decentralized exchanges like Toon Swap lead the way to earnings and security
Toon Swap is a decentralized exchange that offers its users the best of both worlds. It offers them a safe and secure way to trade tokens with no liquidity problems, and made by Toon Finance with extra features that not only have no problems with liquidity and security, also comes with p2e games that will encourage token movement through betting.
Players and spectators can earn while having fun from betting their tokens on the outcome of a match or a coin toss. This makes it so that there is not just trading within the platform and provides more reason for traders to exchange tokens with each other.
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Former FTX CEO Sam Bankman-Fried Arrested!
Ex – FTX founder Sam Bankman-Fried, who led the exchange until a liquidity crunch forced the Bahamas-based cryptocurrency exchange to declare bankruptcy, was arrested on Monday in The Bahamas after being criminally charged by U.S. prosecutors.
After getting official confirmation of the accusations against Bankman-Fried, the Bahamas’ attorney general’s office said it went forward with the arrest and added that it anticipates he would be extradited to the US.
Was Sam Bankman-Fried To Blame For Terra’s Unfortunate Crash In May?
According to recent reports, federal prosecutors are investigating whether Sam Bankman-Fried, the founder of FTX, manipulated the market for two cryptocurrencies this past spring, causing their demise and setting off a chain reaction that ultimately led to the collapse of his own cryptocurrency exchange last month.
It is unclear at this time what the outcome of the investigation will be, and what impact it may have on the cryptocurrency industry as a whole. It is also unclear what Bankman-Fried’s stance is on the matter. Moreover, was there a link between FTX and Terra’s crash?
Was Bankman-Fried involved with the Terra/Luna Crash?
The likelihood that Bankman-Fried manipulated the prices of two interconnected currencies, TerraUSD and Luna, to benefit the firms he controlled, such as FTX and Alameda Research, a hedge fund he co-founded and owned, is being looked into by US authorities in Manhattan.
Since this investigation is only just beginning, it’s unclear whether or not authorities have found evidence of Bankman’s crime or when they began looking into the TerraUSD and Luna trades. The case is part of a larger inquiry into FTX’s collapse and the alleged loss of potentially billions of dollars in customer assets.
Previous reports have also indicated that Terra’s stablecoin unpegged from the dollar in May. The company that created it, Terraform Labs, flooded the market with LUNA tokens to keep the peg stable. That plan backfired, LUNA crashed, and UST dropped even further, triggering the year’s first widespread cryptocurrency panic, the effects of which we are still experiencing to this day.
According to some shocking insider sources, FTX was the source of a deluge of sell orders for US Treasury securities (USTs). Small quantities were ordered rapidly.
It should be emphasized that people who were pushing the initiative may have made significant profits from Luna’s price drops. However, the entire system broke down, wiping away up to a trillion dollars from the cryptocurrency markets and causing a subsequent meltdown.
Six months later, the aftermath of that crash effectively put an end to SBF’s crypto empire.
Wrapping up
The reasons behind the two cryptocurrencies’ fluctuations are unknown at this time and it could be harmful to try and assume anything.
All we can be hopeful of is that some big market players aren’t able to profit from the misfortune of others and are served justice soon enough.
Sam Bankman-Fried Reveals About the Properties in The Bahamas
Sam Bankman-Fried, the former CEO of FTX, was questioned by New York Times journalist Andrew Sorkin in his very first public appearance through a video call. Sorkin threw a barrage of questions towards the former CEO and also questioned him about the money that had vanished from the exchange immediately after it had filed for chapter 11 bankruptcy. Bankman-Fried briefly touched on this subject while stating that he was currently cut off from FTX’s systems.
The FTX US team and Bahamian regulators had both seized some, along with some “actual improper access,” which he was unable to detail. This was the “answer to the extent that I know it,” SBF said.
Talking about his contributions and donations which made headlines, SBF said that lawmakers were not ruling FTX. When asked about who’s money they were using to make donations to the Democratic party, SBF said that it was mainly from the profits they made.
“So I mean, lawmakers were not ruling on FTX. FTX didn’t have an application before Congress for anything. You know, my donations were mostly for pandemic prevention. And they were looking at primary elections where there were candidates who are outspoken in favor of doing things now to prevent the next pandemic.”
SBF speaks about properties in The Bahamas
Bankman-Fried also clarified his real estate in the Bahamas and explained that his parent’s property was not intended to be their long-term property. He said that there were a lot of property purchases in the Bahamas because top Silicon valley employees came down to work there
“And, you know, we were trying to incentivize that and to, you know, make sure that they had an easy way to find a comfortable life that they’d be willing to move and, and help build out the product,” SBF said.
But he also said that he feels ‘bad’ for them because they bought properties of their own in the Bahamas.
“And so, you know, those hundred people put together here did end up buying a substantial amount of property. So it kind of, I feel bad about some of how those investments may turn out for them ….”
Sam Bankman-Fried Disclosed His Relationship With Alameda Research
Former Chief Executive Sam Bankman-Fried entered the media limelight as the collapse of FTX continues to cast a shadow over the cryptocurrency market. At the newspaper’s annual DealBook Summit, Andrew Ross Sorkin of The New York Times peppered him with a barrage of questions. SBF also gave an interview with Axios and revealed his current net worth.
Bankman-Fried virtually participated in the meeting from the Bahamas and asserted that he did not try to fraud anyone and called it a ‘bad month’.
“I didn’t ever try to commit fraud on anyone. I was shocked. I’ve had a bad month. This has not been any fun for me. But that’s not what matters here. What matters here is the millions of customers, what matters here is the stakeholders in FTX. And what matters is trying to help them out,” Bankman-Fried told Sorkin.
SBF added that he wanted to help in getting the investors’ money back and disclosed that he only has $100,000 in his bank account.
“I think I might have one working credit card left.” In a Tuesday interview with Axios, he said he had no idea where his current net worth stood: “Am I allowed to say a negative number?” he joked, later offering he “had $100,000 in my bank account last I checked,” he added. SBF was once worth $26 billion.
I wasn’t running Alameda: SBF
Talking about his relationship with Alameda, SBF said that he was not running the firm. He said :
“I wasn’t running Alameda, I didn’t know exactly what was going on. I didn’t know the size of their position. A lot of these are things that I’ve learned over the last month that I learned as I was sort of frantically digging into this on November 6, November 7, and November 8. And obviously, that’s a pretty big mistake.”
In the lengthy interview, SBF also revealed that he has no plans for his future as of now.
“I don’t know what my far future is. When you fast forward I have no idea what I’m going to be doing a long time from now”, he added.
Sam Bankman-Fried Was Bribing Media – Says Elon Musk
The post Sam Bankman-Fried Was Bribing Media – Says Elon Musk appeared first on Coinpedia Fintech News
The Twitter CEO made clear that Bankman-Fried ‘does not own shares in Twitter as a private company and ‘neither I nor Twitter has taken any investment from SBF/FTX.’
A former New York Times writer was accused of collaborating with the former CEO of a cryptocurrency company, and Elon Musk asked that the reporter reveal whether he had any financial ties to failing FTX chairman Sam Bankman-Fried.
Musk has been outspoken about the media and tweeted that the ownership of the news organization Semafor by SBF creates a significant conflict of interest with regard to reporting. A photo of SBF’s inclusion in the funding round was posted by Elon Musk.
In his recent tweet he slammed SBF saying If SBF was as good at running a crypto exchange as he was at bribing media, FTX would still be solvent!
The FTX Hack Puzzle Is Being Solved Online, Is The MasterMind Sam Bankman-Fried ?
Investigators from all over the world are still perplexed by the FTX heist that took place just hours before Sam Bankman-Fried voluntarily filed for Chapter 11 bankruptcy.
However, FTX users have not received a guarantee that they will receive their money back, and they will probably continue to wait for years.
The recovery of FTX funds, according to some market analysts, could take decades. But who is the hacker behind the heist?
In a recent tweet, an on-chain data researcher identified the address as 0xd275e5cb559d6dc236a5f8002a5f0b4c8e610701. According to the report, a former FTX worker who wishes to remain anonymous reveals that oxd275 undoubtedly has some relation to the FTX hacker.
Additionally, lookonchain mentioned the suspicious address 0xd275 in another tweet. On November 21, this address transferred $USDC from #Aave to the exchanges, and 20 minutes later, FTX hackers dumped 15,000 $ETH for renBTC.
Hacker is moving funds constantly
According to data from Etherscan, the alleged hacker responsible for the loss of hundreds of millions of dollars from the insolvent cryptocurrency exchange FTX is transfering the money between different wallets in an effort to avoid detection.
A data analytics and blockchain security company named PerkShield Inc. stated that an FTX miner had transferred 180,000 ETH, or around $200 million, to another account. On-chain data shows that the FTX hacker sent the stolen money in transfers of 15,000 ETH each.
While some cryptocurrency projects, like Tether (USDT), continue to restrict some assets, the FTX hacker is near to liquidating the rest of the coins.
However, a recent Bloomberg report claims that the FTX crisis might have been avoided months in advance.
Federal prosecutors in Manhattan are reportedly looking into the FTX exchange months before it collapsed.
Nevertheless, because of Bankman- Fried’s donations, which total $40 million in 2022, FTX and its companies have many connections in the political class.
Sam Bankman-Fried Created A Million Bitcoin Maximalist – Michael Saylor
The founder of FTX, Sam Bankman-Fried who is under close regulatory investigation over claims of user money fraud, may have indirectly produced many Bitcoin maximalists, according to MicroStrategy (MSTR) Executive Chairman Michael Saylor.
Earlier, Saylor compared FTX CEO Sam Bankman-Fried to trader and stockbroker Jordan Belfort in an interview on Yahoo Finance Live.
“I mean, in fact, in a sense, SBF is like the Jordan Belfort of the crypto era. Instead of ‘The Wolf of Wall Street,’ they’ll make a movie called ‘The King of Crypto’.He was working to corrupt regulations and corrupt the political process. When you have actors that use corrupt counterfeit, stolen money in order to undermine the industry, it’s not good for anybody,” he said.
Few days after the FTX collapse, MicroStrategy stock fell 20% as investors feared after a sharp decline in Bitcoin. MicroStrategy revealed last month that it owned 130,000 bitcoins, with an average purchase price of about $30,639 per coin and a total cost of almost $3.98 billion.
Saylor also attributed the failure of the crypto exchange to the lack of transparency. On CNBC’s Squawk Box, A company’s cryptocurrency holdings should be “nobody else’s liability, Saylor said.
He stated that given the existing circumstances, additional regulatory control of FTX is unavoidable. However, he stressed that the sector as a whole could be harmed if regulators respond too harshly to FTX’s collapse.
Following the bankruptcy of troubled crypto exchange FTX, the price of bitcoin fell below $16,000 on Thursday.
BTC is currently trading just around $17,000 after experiencing a little uptick following the release of US consumer price index data on Thursday morning.
It is currently unknown how long the crypto market will take to recover from the crash brought on by FTX.
BTC is now down by almost 30% in relation to its 30-day highs. And most other major cryptocurrencies share the same situation.
Sam Bankman-Fried is ‘Very Experienced Con Man’ – Says FTX Investor Evan Luthra
Investors are being affected significantly by the sudden collapse of the cryptocurrency market and, in particular, a company connected to a significant crypto exchange. FTX is among the biggest cryptocurrency exchanges in the country.
It is now declaring bankruptcy and was recently valued at $32 billion. At this time, investors are unable to withdraw any funds from the site. Both large and small investors are suffering from FTX’s collapse.
Businessman and cryptocurrency investor Evan Luthra lost $2 million as a result of the entire FTX debacle. “I made the wrong decision of trusting somebody like FTX and giving them my bitcoin, giving them my crypto so that they could give me ‘IOUs.’ And then they went under, and they scammed us. So a very big lesson for me, a very big lesson for everybody,” Luthra said on “Varney & Co.,” Wednesday.
Luthra also said that his continued investment in bitcoin and the crypto sector has transformed him into a “more fundamental” investor, despite the hesitation of many investors to return to the world of cryptocurrencies.
He said that Sam Bankman-Fried has consistently lied about what he has been doing.This is not an overnight failure and this is not a business that didn’t work out according to Luthra. Instead this was them defrauding people, he added.
“This is the FTX going on stage and going publicly and tweeting that funds are safe and secure. They were never secure. They were using it to buy houses. I don’t have any auditing records. I could only test on what the market shows. The market made you believe that it’s a company you can trust,” he added.
The businessman continued to express his faith in the basic principles of cryptocurrency, saying that the collapse of FTX was caused by “an individual” who was “very bad businessman, but very experienced con man.”
Former FTX CEO, Sam Bankman-Fried Cashed Out $300M to Buy Rival Binance’s Stake!
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Ever since the FTX series has been playing within the crypto space, the participants are witnessing fresh new episodes every day. Recently, the exchange was reportedly “hacked” and more than $600 million in funds were squeezed out. Meanwhile, many believed it was the job of an insider as the stolen funds were quickly converted into Ethereum & stablecoins.
In a fresh update, SBF has reportedly received a portion of $420 million in funds into his personal account. FTX raised $420 million in funding in October last year to improve the user experience and be more in line with regulators. Interestingly, nearly 75% of the total amount was sent to SBF.
The October 2021 funding round valued FTX exchange at $25 billion and raised money from investors like BlackRock, Tiger Global, and Singapore’s sovereign wealth fund Temasek & Sequoia Capital. Later, after a couple of months, some of these investors helped raise $400 million for FTX’s subsidiary at an $8 billion valuation.
During the time funds were raised, the crypto markets were booming and the Alameda was highly profitable. While it is still unclear what SBF did with the $300 million, whether it was poured back to FTX or kept separate, Meanwhile, FTX’s 2021 audited financial statements said the money was being reserved by the company for ‘operational expediency’ on behalf of the related party.
Jack Dorsey Reacts on FTX Saga! Reveals Shocking Truth About Sam Bankman-Fried
Former FTX CEO Sam Bankman-Fried has received a significant share of criticism following the sudden collapse of the FTT token and its subsidiaries. With a congressional hearing on FTX collapse slated for next month, Bitcoin maximalists have taken to the social media stages to advocate for its prowess.
Jack Dorsey – a Bitcoin supporter and advocate – has expressed his disapproval of SBF and FTX’s approach to the digital market. While reiterating the old crypto slang ‘trust no one, ‘ Dorsey admitted that SBF approached him a few days before the FTX meltdown.
However, Dorsey indicated that he reported the text messages as junk to the network provider and Apple team. As such, the conversation did not continue from there, per the public report.
According to a report by Reuters, SBF spent the night before filing for chapter 11 bankruptcy calling deep-pocketed investors to bail out FTX. Among the listed investors requested to cough over $7 billion include Sequoia Capital, Apollo Global Management Inc, and TPG Inc.
Nonetheless, the investors declined SBF’s request, citing gross anomalies in the company’s balance sheet. Moreover, FTX was doing ‘well’ per the public quarterly earnings report until the second quarter of 2022, when the company recorded a net loss of over $161 million.
While SBF, FTX, and Alameda continue to hide behind men in suits through the Delaware court proceedings, an estimated 1 million customers and investors are counting significant losses. Moreover, SBF reportedly used $10 billion in customer funds to prop up its trading business.
While his operations remain unclear, it is reported that SBF used an estimated $40 million to sponsor the 2022 midterm elections in the United States.
Bigger Picture on FTX Meltdown
The FTX meltdown has been a blessing and curse to the cryptocurrency market simultaneously. For instance, rival companies Coinbase Global and Binance crypto exchanges have come together via Trust Wallet to enable safe and fast adoption of Web3 technology.
On the other side, confidence in the crypto market has been severely shaken, despite an ongoing investigation by the U.S. Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
Meanwhile, bearish sentiments have sustained in the crypto market, led by Bitcoin price in the past two weeks. According to our latest crypto price oracles, Bitcoin price is down approximately 1.3 percent in the past 24 hours to trade around $16,500.
Sam Bankman-Fried is a ‘Terrible Trader’ Slams Ripple CTO, David Schwartz
Sam Bankman-Fried, the founder of FTX, was criticized on Twitter by David Schwartz, the chief technology officer of Ripple, who claimed that SBF has always been taking a significant directional risk.
“I keep hearing people describe SBF as a “great trader”. Is that really true? Everyone in the space made money during the massive bull run, at the same time Sam did. And when things went bad, his trades massively blew up. Maybe he was just taking the massive directional risk all along.”
He said that SBF was a poor trader and compared the situation to that of Celsius. As per David, Celsius did the same thing: they set up the situation so that they receive the majority of the profits, and if the small risks of massive losses materialize, they shift those losses to people who were unaware of the risks they were taking.
Additionally, he singled out SBF and took a dig at the claims that he forgot how much leverage he had and how much risk he was taking. If such is the case, he is a terrible trader since knowing how much and what kind of risk you are taking is the most crucial trading ability, according to him.
“FWIW, I think it’s more likely that he wasn’t taking large directional bets all along. I think I was able to capitalize on inefficiencies in the markets to make outsized profits at first. But when those dried up, he kept the profits coming by increasing leverage and risk.”
After a quick fall and collapse, FTX filed for Chapter 11 bankruptcy protection on November 11, 2022. Sam Bankman-Fried, the company’s founder and CEO, saw his $16 billion net worth drop to almost nothing as the company’s valuation plummeted from $32 billion to bankruptcy in a couple of days.
A lawsuit Filed Against FTX and Sam Bankman-Fried for the Sale of Unregistered Securities
Since last week, the announcement of FTX’s collapse, previously one of the most valuable cryptocurrency exchanges in the world, has shaken up the world financial markets. Sam Bankman-Fried, the founder of FTX, has been named in an $11 billion proposed class action complaint that asserts fraud and the sale of unregistered securities.
SBF resigned as the company’s CEO after filing for Chapter 11 bankruptcy. However, millions of consumers’ and investors’ money was in danger. The case was filed in Florida Southern District Court by renowned law firms Boies Schiller Flexner LLP and the Moskowitz Law Firm.
The defendants allegedly took part actively in the “offer and sale of unregistered securities in the form of yield-bearing accounts,” according to the lawsuit.
The lawsuit stated that, “FTX’s business was based upon false representations and deceptive conduct. Although many incriminating FTX emails and texts have already been destroyed, we located them and they are evidence of how FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country.”
In the class-action lawsuit filed against FTX, various Hollywood and sports figures, including Larry David Naomi Osaka, and Tom Brady, have also been named as defendants. The claim is that because of their celeb status, these individuals promoted the company’s failing business strategy.
“Part of the scheme employed by the FTX Entities involved utilising some of the biggest names in sports and entertainment – like these Defendants – to raise funds and drive American consumers to invest … pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat,” the lawsuit added.
After learning about the company’s loan arrangement with Bankman-Fried-founded cryptocurrency hedge fund Alameda Research, investors reportedly tried to withdraw roughly $6 billion from their accounts on November 6. This is when the collapse of FTX is said to have started. FTX’s demise resulted in the loss of $32 billion in value on November 9, according to reports, and the company suspended customer withdrawals on November 8.
After FTX s alleged $600 Million hack, is Sam Bankman-Fried Flying to Argentina?
FTX, which was once among the top cryptocurrency exchanges in the world, essentially collapsed this week. For a brief while, it appeared that rival Binance would step in to buy FTX, but after seeing FTX’s financial records, Binance quickly withdrew.
Sam Bankman-Fried, the founder of FTX, is reportedly flying to Argentina, albeit the information has not yet received official confirmation. FTX and FTX US wallets were reportedly the target of a hack involving a token transfer worth about $600 million.
Assets worth hundreds of millions of dollars vanished from the troubled cryptocurrency exchange FTX on Friday, according to exchange officials, in what may have been a “hacking” event.
The FTX said Friday that it was investigating a barrage of “abnormal” asset transfers flooding across accounts.
The company is already in a worst state of financial and reputational free fall. A further examination seems to indicate that up to $600 million might have been stolen.
Ryne Miller, the company’s general counsel, tweeted, “Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.”
The crypto industry as a whole has suspicions that the hack may have been carried out by insiders. However, because there isn’t any conclusive evidence to support the identity of the hacker, the accusations made on social media remain speculative. Many FTX customers have reported seeing $0 balances in their FTX.com and FTX US wallets on Twitter.
Due to a severe liquidity crisis, Mr. Bankman-Fried resigned as FTX’s CEO early on Saturday morning, and Chapter 11 bankruptcy proceedings were started. Meanwhile, John J. Ray III has been chosen to lead the FTX Group as its CEO.
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CEO Bankman-Fried Resigns as FTX Files for Bankruptcy Protection in The U.S.
Days after bigger rival Binance withdrew from a planned acquisition, the announcements were made.
On November 11 – The troubled cryptocurrency exchange FTX said on Friday that it would file for bankruptcy in the US as its Chief Executive Sam Bankman-Fried quit, potentially setting off one of the largest market meltdowns ever.
The company made the news on its Twitter account days after bigger rival Binance backed out of a planned purchase, leaving it scrambling to raise nearly $9.4 billion from investors and competitors.
The firm claimed that Alameda Research, a trading company owned by Bankman-Fried, is also covered by bankruptcy protection. According to sources, it is partially to blame for FTX’s problems and owes FTX almost $10 billion.
The demise of FTX represents a spectacular turnabout in fortunes for the business and its founder Sam Bankman-Fried, who was once regarded as a “white knight” and was compared to the wealthy Warren Buffett.
It also makes one wonder what will happen to smaller enterprises like BlockFi and the bankrupt cryptocurrency lender Voyager Digital, which had signed rescue agreements with FTX after the stunning TerraUSD meltdown in May brought so many businesses to the verge of failure.
After experiencing a liquidity crisis brought on by consumers withdrawing money at a rapid clip, FTX was looking for a lifeline. It also fuels worries about the future of the cryptocurrency sector, which has difficulty winning mainstream investors’ trust.
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Sam Bankman-Fried in a Tussle With Texas Officials Over Unregistered Securities
Texas officials are looking into whether or not the spend-thrift entrepreneur Sam Bankman-Fried and the cryptocurrency exchange FTX is marketing unregistered securities products.
According to the notice of hearing, the business was accused of breaking any laws by providing yield-bearing depository accounts that were classified as securities in Texas. It also states that FTX US is not registered with the Texas Department of Banking as a money transmitter or in any other capacity.
One of the three biggest crypto-lending companies, Voyager Platform, stopped operating for its customers and filed for bankruptcy in the US. Voyager Digital was negatively damaged by the fall of the cryptocurrency market and was compelled to file for bankruptcy.
FTX and SBF are both the subject of an investigation, according to Joseph Rotunda, director of the Texas State Securities Board’s Enforcement Division. The officer made the remarks in regard to the lawsuit that was brought by the Enforcement Division against Voyager Digital on April 12, 2022.
“Based upon my earning of yield and an ongoing investigation by the Enforcement Division of the Texas State Securities Board, the yield program appears to be an investment contract, evidence of indebtedness and note, and as such appears to be regulated as a security in Texas,” read the document.
After a terrible summer that left major crypto firms unable to reimburse their users, Bankman-Fried told Forbes in an interview that he was investing hundreds of millions of dollars in struggling exchanges to keep them viable.
According to reports, FTX purchased the assets of bankrupt Voyager for $1.42 billion at an auction last month. Earlier, the business disclosed it owned a 7.6% investment in Robinhood, whose cryptocurrency division recently laid off 23% of its staff.
The Enforcement Division and Voyager Digital are now engaged in court proceedings. The platform is charged with selling unregistered securities to American citizens by the regulator and its enforcement division.
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Sam Bankman-Fried, CEO Of FTX, Steps Back On $1 Billion Political Donation
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In an interview with Politico’s Morning Money, Sam Bankman-Fried, the CEO of the cryptocurrency exchange FTX, backtracked comments that he would contribute up to $1 billion to the upcoming presidential election.
The billionaire has previously declared that he will invest “north of $100 million” in upcoming political elections. Bankman-Fried retracted the comment in the Politico interview, calling it a “dumb quote.”
This year, Bankman-Fried has spent about $40 million on political action groups and campaigns, the vast majority of which has gone to the Democratic Party and its candidates. He was a major contributor to Joe Biden’s successful 2020 presidential campaign.
FTX CEO Sam Bankman-Fried and Elon Musk discuss Twitter Acquisition
Sam Bankman-Fried (SBF), the crypto billionaire, was in contact with Elon Musk about acquiring Twitter, as revealed by the text messages in the legal proceedings.
Will MacAskill, a top advisor of SBF had contacted Musk about SBF’s “potentially interested” in acquiring the social media giant, as reported by Business Insider on September 28. This was revealed after Kate Conger, a New York Times reporter had shared the link to the legal exhibit of Musks’ text messages on Twitter.
MacAskill contacted Musk on March 29, 2022, after he had posted a poll about free speech and Twitter on the social media platform. He put out the proposal of a “possible joint effort” for buying Twitter and offered to connect him with SBF to discuss more.
Musk’s response question was whether SBF had “huge amounts of money?” The advisor informed him about SBF’s net worth of $24 billion. He further informed that SBF could easily contribute amounts between $1 billion to $8 billion and if increased to $15 billion, that will require some extra funding. According to Forbes, the real-time net worth of SBF is currently closer to $17 billion.
According to the Business Insider report, the advisor attempted to arrange a meeting between the two, and the financials were discussed with a Morgan Stanley banker in April. However, it was unsuccessful and Musk also took back his $44 billion Twitter takeover deal in July claiming the social media giant did not provide correct information about spam and bot activity.
Various texts and messages have been revealed between Musk and other industry leaders such as Twitter CEO Parag Agrawal, former CEO Jack Dorsey, Chairman of Twitter Board Bret Taylor, and Oracle Chairman Larry Ellison.
SBF Expanding his crypto empire
Considering the recent acquisition spree of the crypto billionaire, his interest in buying Twitter does not come as a surprise. To expand his crypto empire, SBF has been aggressively acquiring struggling digital asset companies.
Earlier this week, FTX exchange won the auction to buy Voyager Digital’s assets worth $1.4 billion and the counsel for Voyager has proposed an order to authorize the sale on September 29.
According to CrunchBase, the research and venture firm owned by SBF, Alameda has made 181 investments since 2017, and there are additional 22 investments for FTX according to its report.
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Trouble in Ethereum Merger! Here’s What FTX CEO Sam Bankman-Fried Has To Say – Coinpedia – Fintech & Cryptocurreny News Media
Ethereum, the second largest cryptocurrency by market cap, has been leading the market run for a couple of days. One of the biggest reasons for this is the upcoming merge which will transform the Ethereum network from proof-of-work (PoW) to proof-of-stake (PoS).
This is one of the most spectacular events to take place in the crypto space. Any such developments naturally increase the confidence among market participants which will in turn push the currency’s price toward the north.
Meanwhile, Sam Bankman-Fried, FTX’s CEO, has given his opinion in regard to the outcome of the Ethereum Merge. In a recent interview with CNBC, Bankman-Fried claims that the Merger will be an exciting event for the community as this will make the network’s transactions faster and cheaper.
As per the expert, the initial stage of the Merge will not be a cakewalk as there will likely be some issues and that’s unavoidable. The early days of the event will bring chaos to the ETH community along with a lot of confusion and unpreparedness due to technical difficulties. This is because the network will see a transition and for this, many will have to update software to process a new chain.
The FTX CEO further says that there will be many who will be ready to update and a few will oppose. He foresees that APIs will cause an issue that many didn’t expect and this will see bug fixes on centralized institutions.
Sam Bankman-Fried is of the opinion that this is a massive transition that the network will experience as it’s not just a single entity that will get transformed, instead, entire decentralized and centralized entities will be involved in the transformation.
He ends his conversation by saying that “everything will not happen in one go and that people will take time to clean up.”
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This Is Why Sam Bankman-Fried Is Bullish On Bitcoin Price
While many crypto analysts and traders are looking forward to better trading days, Sam Bankman-Fried, FTX founder and a crypto billionaire is of the opinion that Bitcoin will soon see a positive trend.
In a Bloomberg interview on David Rubenshtein episode, Bankman-Fried claimed that he was not worried when Bitcoin fell below $30,000 in May.
However, the King currency didn’t stop there and after Federal Reserve Chairman Jerome Powell’s speech, Bitcoin even lost $20,000 level. Powell had claimed that the US central bank will stick to its hawkish statement.
When the host asked Bankman-Fried if the crypto market will see a recovery anytime soon, he said that along with the Crypto market, the stock market has also dropped as a result of macroeconomic factors.
According to him, the stock market collision was preceded by the collapse of the cryptocurrency market, so if the stock market recovers, crypto will too.
Bitcoin Bear Cycle Will Not Last Long
In the month of May when Bitcoin began its bearish cycle, the FTX founder expected the price action to be negative and the currency did stick to that with many crypto related businesses collapsing.
He also asserted that the present bearish momentum will not last long but the crypto market will fall back if the stock market does. The same was seen in 2020 when Nasdaq index dropped by 30-40% and Bitcoin followed declining below $10,000.
Meanwhile, a few of the market experts believe that the flagship currency has already hit the bottom as the currency plunged by 6% on August 26 after Jerome Powell’s speech.
Traders think that the BTC fall was relatively low given such bearish circumstances. Cryptocurrencies experienced a much steeper decline during past crises than tech stocks. Now Bitcoin is displaying some strength, which analysts describe as “a positive indicator.
At the time of reporting, Bitcoin is trading at $19,810 after a fall of 1.56% in the last 24hrs.
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The Crypto Bear Market Could Have Been Much Worse – Says FTX CEO Sam Bankman-Fried – Coinpedia – Fintech & Cryptocurreny News Media
After Jerome Powell’s remarks at the Jackson Hole Economic Symposium, the price of bitcoin dropped. The asset’s price dropped by almost 6% over the previous week. Bitcoin increased by 2% the previous day, outpacing volume from the day before, and reaching a high of $20,000. Part of the losses from Monday has been recovered by the largest cryptocurrency by market cap.
Sam Bankman-Fried, chief executive officer of FTX, remarked that in terms of asset prices, the crypto winter might have been considerably worse. The sector, according to the billionaire investor, needs competent regulation, and it makes little difference who does it.
He also discussed the many investments his companies had made in cryptocurrency firms. Bankman-Fried claimed that while some rescue investments were successful, others fell short of expectations.
Things will be in control
Even though Bitcoin’s price once again dropped below $20,000 to start the week, the FTX CEO thinks things won’t get too terrible. According to Bankman-Fried, the Bitcoin price situation could have been worse in an interview with Bloomberg.
According to the investor, he is not concerned about the business collapsing any time soon. He labeled the outcomes of investments totaling $1 billion in a crypto bailout as “mixed.” The CEO emphasized that the funding was provided with the goal of assisting cryptocurrency startups, not profiting from transactions.
The investor said that in order to gain support for the cryptocurrency ecosystem, he is actively lobbying Congress in Washington. He responded that it would not really matter when asked about the lack of clarity regarding which regulatory authority may monitor crypto businesses. The Securities and Exchange Commission or the Commodity Futures Trading Commission could regulate the sector, he continued, and that would be great with him.
“What we’ve tried really hard to do over the last year is get the industry to a place where it is happy to accept sensible regulation. I believe tensions have cooled somewhat between regulators and the digital currency companies.”