Who Holds the Key to Sam Bankman-Fried’s Fate? Court to Unveil Co-Signers of $250 Million Bail Bond
A hearing regarding Bankman-Fried’s bail conditions is scheduled for February 9th, and the names of the co-signers of his $250 million bail bond will be made public after the next hearing.
The former CEO of FTX, Sam Bankman-Fried, is in talks with US prosecutors to resolve the issues related to his bail conditions, according to a court filing. Bankman-Fried’s counsel, Mark Cohen, has expressed optimism that an agreement between both parties will be reached in the coming days, eliminating the need for further litigation.
Prosecutors have accused Bankman-Fried of being in contact with current and former employees of FTX and Alameda, which is deemed an attempt to influence future witness testimony. The former CEO has been in touch with Ryne Miller, the current general counsel of FTX US, and John Ray, the new CEO of FTX, to offer assistance.
A judge recently modified Bankman-Fried’s bail conditions, prohibiting him from contacting current or former employees of Alameda Research or FTX, as well as using encrypted chat apps such as Signal. Bankman-Fried’s counsel has argued that the former executive needs to be in contact with former employees, including the company’s in-house therapist, George Lerner, as they are an important source of personal support.
Additionally, Bankman-Fried’s lawyers have requested the court to remove the bail condition that prohibits him from accessing and transferring his crypto assets held by FTX. The court has also allowed the names of the co-signers of Bankman-Fried’s $250 million bail bond to be made public after the next bail hearing. This move was made following a lawsuit filed by several media companies, seeking to uncover the identities of the guarantors.
A hearing regarding Bankman-Fried’s bail conditions is scheduled for February 9th, with his counsel requesting a rescheduling from February 7th. The public awaits the outcome of the hearing, as the risk of illegitimacy and public scandal cannot be evaluated without knowing who the guarantors are.
FED Make Major Move: $700 Million Seized from Sam Bankman Fried
The United States Federal authorities have seized $697 million from Sam Bankman Fried, Founder of cryptocurrency exchange FTX. The majority of the assets were being in the form of shares of the popular trading app, Robinhood. SBF had previously announced that he had acquired a 7.6% stake in Robinhood stating that it was an attractive investment opportunity.
These Robinhood shares which are worth $50 million have been claimed by Sam, BlockFi representatives, and the leadership of FTX Debtors. Federal authorities have alleged that these shares were acquired using the funds that were stolen from FTX customers.
Even though the reason for the seizure has not been made public yet, it has raised questions about the legality of such actions and their implication in the cryptocurrency industry. Several experts are concerned that the future of the crypto industry will be packed with stringent regulations.
The United States government stated that over $6 million from three accounts at Silvergate Bank were under the name of FTX Digital Markets. These assets were initially owned by a Bahamian company and were later acquired by the US government on Jan 11.
Silvergate Bank reported a loss of $1 billion in the fourth quarter of 2022 after FTX’s collapse. Moreover, around $50 million was stored at Moonstone Bank, a financial institution in the U.S. that has connections to the administration of FTX.
The case is still going on and the outcomes will have a deep impact on the crypto industry.
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.
Will a Marvel Character Play Sam Bankman-Fried’s Role In the Upcoming Series? Here’s a complete list
Hollywood is attracted to drama, and the FTX crash is one of the most dramatic incidents of 2022 that shook the entire world. Many organizations are vying to get the FTX story to television and movie theaters, which may sound funny. However, if reports are to be believed, some documentaries are already in the making and the biggest names in the film industry are involved.
Anthony and Joe Russo, the renowned duo behind the Avenger movies, are reportedly working on an eight-episode miniseries that will focus on the FTX tale. According to reports, Amazon Studio will back that David Weil-penned project. A CNBC report also suggests that they are trying to get a Marvel character on board.
A book about the former CEO of FTX Sam Bankman-Fried and the collapse of FTX is currently being written by the famous author of works like “The Big Short,” “Moneyball,” and “Flash Boys.” Lewis traveled with and interviewed Sam Bankman-Fried for six months, according to a letter distributed by his agency, CAA. He visited the FTX CEO and spoke with him for “many hours”.
Lewis has been pitching the film and television rights to his book, and according to Creative Artists Agency (CAA) agent Matthew Snyder, a deal with Apple may be on cards.
A documentary titled “SBF and the End of Silicon Valley” is being produced by Vice Media and tech business journal The Information. The documentary, which will draw on reporting from Vice’s Motherboard team and The Information’s crypto and VC teams, will examine FTX’s inexperienced leadership. The renowned New York Times writer Andrew Ross Sorkin, who spoke with SBF after FTX’s collapse, and Panoramic Media are collaborating on a project.
Oscar-nominated filmmaker David Garg is also working on a documentary with studio XTR. This company may be among the first to take on the project. According to a Vanity report, Garg began shooting the movie in the Bahamas as early as November 17, 2022.
Graham Moore, the Oscar-winning author of “The Imitation Game,” will adapt the New York Magazine cover story on FTX’s collapse and will also serve as the film’s director, according to Deadline.
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.
Analysts Keep A Strong Eye On HedgeUp To Become The Cryptocurrency Savior After Sam Bankman Destroys FTX
Analysts are constantly looking for the next significant cryptocurrency to revamp people’s hopes, especially after the damaging impact of the fall of FTX. The focus has been on one major thing: the long-term viability of such crypto coins and positive investment returns. It doesn’t matter if the crypto is a traditional coin, an altcoin, a stablecoin, or something else. They want to know if cryptocurrency has a verifiable mechanism for securing investors’ funds and is a great model to drive broader adoption!
Hence, analysts use a variety of metrics to determine which crypto coin to focus on next. Sometimes a good sign of future success is where whales put their money. This consideration is because these crypto whales conduct so much research and make their living in this manner.
As crypto whales are swimming towards HedgeUp (HDUP), with its presale topping the charts across platforms, the token has been attracting the attention of analysts.
Explore why analysts keep an eye on HedgeUp (HDUP) to become the cryptocurrency savior after Sam Bankman destroys FTX.
FTX (FTT) Liquidity Crash and its effects on Market Psychology
According to the New York Times, FTX (FTT) fell after CoinDesk, a cryptocurrency publication, released a leaked document. According to the paper, Alameda Research, a hedge fund run by Sam Bankman-Fried, the founder and former CEO of FTX, possessed many FTT tokens.
These irregularities led to Binance’s decision to sell its FTX (FTT token) holdings, which caused the value of the FTT to plummet and other operators to stop using FTX to protect their capital. It resulted in approximately $600 million in withdrawal requests in FTX in three days, revealing that FTX had liquidity issues; that is, it did not have the money at the time to handle its users’ money returns.
Due to panic after selling positions in Binance’s FTT and rumors of FTX’s bankruptcy, the fall of FTX led to a domino effect in the cryptocurrency market. When FTX announced that it would restrict cryptocurrency withdrawals, the situation worsened.
In the three days following the bankruptcy filing, the price of FTT fell 90%, from $25 to $2.7. Bitcoin also returned to two-year lows below US$20,000, Ethereum dropped more than 3%, and other digital currencies dropped nearly 5%.
HedgeUp (HDUP) as the cryptocurrency savior after Sam Bankman destroys FTX.
HedgeUp (HDUP) is taking a transparent and community-driven approach to managing funds. This approach will enable it to avoid the problem of financial integrity, as was the case with Sam Bankman-Fried of FTX. The HedgeUp governance mechanism is characterized by a decentralized autonomous organization (DAO) that will manage investment baskets, liquidity allocations, and the overall direction of ongoing developments.
All community members are welcome to join HedgeUp DAO to Keep the truly decentralized community safe and fair. The platform allows community members to share their thoughts on HDUP’s plans and growing ecosystem. Members of the HedgeUP DAO receive additional benefits and have voting rights to influence the project.
Investors are glad HedgeUp (HDUP) is opening a new vista for investment in alternative assets such as gold, diamonds, exotic watches, private jets, and yachts available to everyone. HedgeUp (HDUP) works with established companies and high-end start-ups, while project experts and analysts negotiate and develop contracts with third-party vendors.
After successful negotiations, these assets will be available on the HedgeUp marketplace for investment. As the project places a high premium on the safety of investors’ assets, all alternative assets stay secured in a licensed and insured vault.
Based on the preceding, the use cases of HedgeUp (HDUP) are already electrifying the crypto market, sparking excitement and rekindling interest. The prospects of the HedgeUp (HDUP) token are making the ongoing presale the beginning of a new epoch for cryptocurrencies. It has been looking promising and can only get better.
Sam Bankman-Fried’s $200M Venture Investments With Users’ Funds Has Drawn SEC’s Scrutiny
According to reports, of the billions of dollars in client deposits that suddenly vanished from FTX, about two hundred million dollars were utilized by Sam Bankman-Fried “SBF” to support investments in two firms that have attracted the attention of the Securities and Exchange Commission.
In March, the cryptocurrency business invested $100 million in Dave, a fintech startup that had gone public two months earlier via a special purpose acquisition company.
The other transaction was an investment round for Mysten Labs, a Web3 startup, in the amount of $100 million that took place in September.
Both investments were made through the FTX Ventures division of the cryptocurrency company. The companies made statements at the time indicating that they will collaborate with one another to broaden the ecosystem of digital assets.
According to Jason Wilk, CEO of Dave, the investment made by FTX is already slated to be returned, along with interest, by the year 2026. The investment was made in the form of a convertible note, which is a kind of cash loan with a short-term duration that FTX has the ability to convert into shares at a later date.
The investment that Bankman-Fried made in Mysten Labs was in the form of an equity purchase. Due to the fact that Mysten is a privately owned firm, the United States Bankruptcy Code does not provide a procedure that is clearly established for recovering such money. In addition, the business has not provided any comment about FTX or the investment.
Will the SEC Get the Money Back and Repay Back Users?
Both Mysten and Dave have been implicated in any misconduct that is said to have occurred inside the SBF enterprise. However, it seems that these investments represent the first instances of customer funds being utilized by FTX and its criminal of a founder for venture funding.
The SEC has increased the likelihood that the two investments totaling one hundred million dollars would be subject to a clawback after specifically tying those investments to consumer funds.
In the event that the trustees of the FTX bankruptcy can demonstrate that customer money were used to finance SBF’s investments, they will be able to seek the recovery of customer cash as part of their endeavor to recoup customer assets.
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.
Latest on Sam Bankman Fried’s Arrest: What to Expect During SBF’s Court Hearing Today!
Last Monday, authorities in the Bahamas detained notorious crypto figure Sam Bankman Fried, and a judge ruled against granting him bail. Now he’ll be locked up until February of next year.
It remains to be seen how the litigation will unfold, but if SBF is found guilty, he may spend well over a century behind bars. But there’s a lot that may happen in the case before he receives a final sentence in the coming months or years.
SBF was charged with eight counts in an indictment that was unsealed on December 13 by the United States Department of Justice. These charges include wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, conspiracy to defraud the Federal Election Commission, and campaign finance violations.
The petition for Chapter 11 bankruptcy on November 11 showed that the failure of FTX has resulted in damages to creditors of billions of dollars, which affect approximately one million people.
The Committee of Unsecured Creditors has been established to defend FTX account holders and other creditors in the bankruptcy case of the defunct cryptocurrency exchange. This appointment was made by the Office of the US Trustee under the Department of Justice in the United States.
According to the reports, the offender has probably had a change of heart over his former choice to resist extradition, and he is scheduled to appear in court in the Bahamas today to seek a reversal of the decision.
It is possible that it will take a few weeks to transport him to the United States of America if SBF does end up agreeing to his extradition. After that, he will make an appearance before a court and judge in the country. The continuation of his bail hearings will be determined by them.
Fox Hill Jail, which is the only prison in the Bahamas, is where SBF is now being kept. According to a report that was distributed by the United States Department of State in 2021, the circumstances at Fox Hill are harsh and overcrowded, with insufficient sanitation and nutritional provisions. It was stated that detainees had been subjected to physical abuse at the hands of jail staff.
Bottomline
In the beginning, SBF informed the Bahamian courts of his intention to contest any extradition order to the United States of America. According to the Securities and Exchange Commission (SEC), FTX was a scam from the very beginning.
SBF began transferring client cash to Alameda almost immediately after FTX was established, and he maintained this practice all the way up to FTX’s demise in November 2022.
Many people in the cryptocurrency community have pointed out that SBF is a criminal, and they have criticized him for being self-centered and for not caring how the consequences of his actions would impact other people. I believe that he deserves whatever penalty the authorities decide to hand down to him as punishment for all he did.
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.
An Insider Scoop Into Sam Bankman-Fried’s Arrest! Here’s What’s Coming Next
Crypto is currently experiencing a surge in activity and interest, with one of the biggest pieces of news being the arrest of Sam Bankman-Fried in the Bahamas on Monday. The exact charges against Bankman-Fried are unclear at this time, as the conviction is still classified and neither U.S. prosecutors nor the Bahamas Attorney General has commented on the situation.
However, according to the New York Times, Bankman-Fried has been accused of wire fraud, securities fraud, and money laundering.
Legal Drama
The authorities have taken the first giant step toward holding persons accountable for the multibillion-dollar catastrophe of FTX that occurred a month ago by arresting the CEO.
SBF was detained in anticipation of extradition, according to a statement released on Monday, December 12 by Ryan Pinder, the attorney general of the Bahamas. Federal prosecutors in Manhattan are expected to unseal the case against SBF on Tuesday and provide more information, according to U.S. Attorney for the Southern District of New York Damian Williams.
It has been reported by the New York Times that SBF has been charged with wire fraud by American authorities. The Securities and Exchange Commission (SEC) of the United States has authorized civil proceedings against SBF for breaking securities laws and money laundering.
Bahamian Prime Minister Philip Davis responded to the news by saying both countries have “a shared interest in bringing responsible all people affiliated with FTX who may have breached the public trust and broken the law.”
Will it Alter SBF Hearings?
The chairwoman of the House Financial Services Committee, Maxine Waters, has stated that the panel is still willing to hold hearings on the recent collapse of FTX, a cryptocurrency exchange. She emphasized the importance of Americans understanding the circumstances surrounding the company’s failure.
The founder of FTX has reportedly been trying to avoid or delay the hearing by claiming that he does not have all the necessary information about the collapse. In response, Waters has threatened to issue a subpoena to force the founder to attend the hearing.
Why Was SBF Arrested?
Millions of people have been impacted by the nasty move of SBF and it is their right to know the details. This is why a public hearing is required as per the lawmakers.
- Because of his influence, SBF has given millions to political groups and campaigns. Also, he was hailed as the industry’s new poster boy. In the past, he has backed FTX-friendly crypto legislation.
- Several members of Congress, including New Jersey Democrat Josh Gottheimer and New York Democrat Ritchie Torres, have accepted campaign contributions from FTX or Bankman-Fried, although Bankman-Fried has largely stayed put in his Nassau mansion.
- Ray will be making his first public appearance since the FTX debacle. The expert in restructuring was previously most well-known for having to clean up the damage at Enron almost 20 years before joining FTX.
- According to court documents, Ray claims that FTX’s financial situation was even worse than Enron’s and that he does not trust the company’s bookkeeping from before he took over.
FTX CEO John J. Ray Speaks Out
John J. Ray III, the person tasked with reorganizing the now-defunct cryptocurrency exchange FTX, has told lawmakers that the company’s collapse was caused by mistakes made by its former management. The new CEO of FTX has released his prepared remarks ahead of a Congressional hearing on the matter, where the founder of FTX, Sam Bankman-Fried, has confirmed that he will testify virtually.
What Next?
Experts have told CNBC that if Bankman-Fried is convicted of the accusations against him, he could spend decades in prison. However, before he can serve his time, American authorities will need to secure his extradition from the Bahamas to New York.
The legal drama between Bankman-Fried and FTX has many moving parts, and it will be interesting to learn all of the details as they become available. It is unclear what the outcome of the situation will be at this time.
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.
| Disclaimer: This is a guest post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. |
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.
Mike Novogratz Calls Sam Bankamn-Fried Delusional, Says He Must Be Behind Bars
In an exclusive interview with CNBC, Galaxy Digital CEO Mike Novogratz spoke about the FTX debacle and referred to Sam Bankamn-Fried’s personality as “delusional” asserting that the incident has reduced confidence in financial markets.
Earlier yesterday, SBF made his public appearance virtually and in an interview with New York Times he opened up about the whole collapse and said that he ‘screwed up.’
He also said, “I wasn’t running Alameda. I didn’t know what was going on. A lot of the things were things I learned over the last month.”
The CEO called SBF delusional and said, “It was delusional. Let’s be really clear. Sam was delusional about what happened and his culpability in it.”
He also discussed how FTX’s absence of an internal accounting division contributed to the exchange’s disorganized balance sheet and the careless error of combining the financials of FTX and Alameda.
“I think the money side of crypto, companies like ours that buy and sell and lend and do derivatives, are going to get regulated and should be. They (FTX) perpetuated a large fraud and it wasn’t just Sam. You don’t pull this off with one person. Markets are based on trust. And when you have trust broken like this, it questions everyone else. People start looking for black swans everywhere.”
Will Bitcoin Rebound?
Novogratz also spoke on the effects of the FTX saga as he continued to analyze the state of bitcoin and larger cryptocurrency markets. He believes that the negative impacts of the FTX will be reversed, and the markets for bitcoin and other cryptocurrencies will rebound.
He predicted that institutional adoption of cryptocurrencies will continue to soar, with companies that have secured their distinctive positions on the financial side of the industry moving in directions where transparency is almost a requirement.
“Digital asset is inevitable, and they will be part of our future. And that’s why you don’t see the institutions backing away. Like, Fidelity is not saying, ‘Oh my goodness, we made a mistake,’ they are doubling down at this point.”
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!
Elon Musk Reacts on Sam Bankman-Fried’s Twitter Share Holdings
The post Elon Musk Reacts on Sam Bankman-Fried’s Twitter Share Holdings appeared first on Coinpedia Fintech News
According to semafor report, 2 weeks after clinching a deal to buy Twitter for $44 billion, Musk texted Bankman-Fried and invited him to roll the $100 million stake he had owned for a few months into a privately held Twitter. An FTX balance sheet prepared after the takeover closed on Oct. 28, and circulated to investors earlier this month, listed Twitter shares as an “illiquid” asset.
The previously unreported message, which was reviewed by Semafo discloses that Bankman-Fried owns a sizable chunk of a now privately held and debt-laden Twitter. Musk, who has publicly distanced himself from the crypto impresario since FTX failed earlier this month, now counts him as a financial partner in his effort to remake Twitter.
Overall, a few hours after the article was published, Musk himself denied the story, calling it false, and denied that the CEO of what was formerly one of the biggest exchanges in the world was involved in the acquisition of the social networking site.
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!
The post Former FTX CEO, Sam Bankman-Fried Cashed Out $300M to Buy Rival Binance’s Stake! appeared first on Coinpedia Fintech News
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.
Sam Bankman-Fried’s Lawyer Drops The Case ! Here’s Why
FTX founder Sam Bankman-Fried facing increasing legal challenges over the FTX collapse may have jeopardised his defence by speaking publicly in recent days.
Why SBF’s Lawyer Back out From The Case?
As per Attorneys, SBF was engaged in disruptive tweets and conversations with reporters disparaging the government regulators. Such statements will likely make life more difficult for the defense lawyers seeking to manage fallout from the exchange’s demise and navigate multiple federal investigations.
US lawyers claim that he is disrupting their efforts through “incessant and disruptive tweeting.” Paul Weiss said Friday it has stopped representing Sam Bankman-Fried, citing conflicts of interest.
“We informed Mr. Bankman-Fried several days ago, after the filing of the FTX bankruptcy, that conflicts have arisen that precluded us from representing him,” Paul Weiss counsel Martin Flumenbaum said in a statement. Although Flumenbaum declined to describe the conflicts.
Martin Flumenbaum is currently defending Christian Larsen, the founder and chair of crypto firm Ripple Labs Inc, in a high-profile lawsuit filed by the SEC.
“There’s this old saying that a lawyer who represents himself has a fool for a client. The reverse is also true. An individual who is the subject of an investigation and tries to defend themselves in the court of public opinion has a fool for a lawyer,” said Justin Danilewitz, a white-collar defense lawyer at law firm Saul Ewing Arnstein & Lehr.
“The basic question is who controls the story,” said Stephen Gillers, a law professor at New York University and an expert on legal ethics. “From the lawyer’s point of view, once he or she is hired, it’s the lawyer who controls the story as far as public consumption goes.”
Is SBF Hiring New Lawyer ?
According to a Semafor report, Bankman-Fried has added David Mills, a law professor at Stanford University, and Gregory Joseph, a criminal defence attorney with the New York firm Joseph Hage Aaronson, to his legal team. Bankman-Fried did not respond to inquiries regarding his legal team this week. It is worth norting that Bankman-parents Fried’s are both Stanford Law School professors.
What Next For FTX and SBF ?
FTX’s founder is currently under investigation from several angles. Authorities are looking into possible instances of FTX misusing client funds. On Friday, a House panel wrote to Bankman-Fried and Ray to submit documents pertaining to the bankruptcy of the exchange.
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.