Tag: ftx’s
Crypto Bankruptcy Markets Are Thriving After FTX’s Collapse
Personal Finance Daily: Network of YouTube financial influencers hit with class action suit for pumping up FTXS and student-loan companies illegally collecting on debt discharged in bankruptcy
FTX’s attempts to claw back political donations may target largest recipients, experts say
FTX is seeking to claw back donations made to politicians and PACs. It might seem like an odd request, but it was unsurprising to some legal experts who keep tabs on the space.
FTX’s attempts to claw back political donations may target largest recipients, experts say by Jacquelyn Melinek originally published on TechCrunch
Your Digital Self: Bitcoin and crypto are moving past FTX’s collapse, but the road back will be rough
FTX’s SECRET Bank: This SBF Story Will BLOW Your Mind!
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Read More “FTX’s SECRET Bank: This SBF Story Will BLOW Your Mind!” »
Sam Bankman-Fried launches a Substack to defend himself over FTX’s collapse
Move over, Twitter Spaces, Sam Bankman-Fried has a new platform to opine on about the collapse of his cryptocurrency empire.
The founder and former CEO of failed crypto exchange FTX, Sam Bankman-Fried, also known as SBF, launched a newsletter via Substack on Thursday. The first and only post at this time, titled FTX Pre-Mortem Overview, is a rundown of SBF’s version of events that led to the demise of his company.
This post marks the first time Bankman-Fried has spoken out since his arrest in the Bahamas on Dec. 12. SBF is facing multiple criminal charges, ranging from wire fraud to money laundering.
For those who have listened to the multiple audio interviews that Sam Bankman-Fried gave to crypto influencers on Twitter Spaces prior to his arrest, the details in this post will sound quite familiar. SBF continues to claim that he’s unaware of what was going on at his crypto hedge fund, Alameda Research, and the improper transfer and use of customer funds from FTX to Alameda.
The head of Alameda Research at the time was SBF’s ex-girlfriend Caroline Ellison, who accepted a plea deal and has agreed to cooperate with prosecutors in the case against Bankman-Fried.
SBF claims that Alameda Research was a victim of downturns in the market and eventually “Alameda’s contagion spread to FTX.” SBF cites other recently failed crypto firms, like Celsius and Voyager, in an attempt to show that this was an industry-wide issue and not unique to FTX.
Bankman-Fried also continued to criticize FTX’s legal counsel, Sullivan & Cromwell. SBF has maintained that he could have continued to raise liquidity which would have saved FTX from failure and made its customers whole. However, according to the former FTX CEO, Sullivan & Cromwell pressured him to file for Chapter 11 bankruptcy instead.
FTX was once one of the largest crypto exchanges in the world. Shortly before its collapse, FTX was valued at $32 billion. In November, reports from Coindesk and independent crypto investigator Mike Burgersburg revealed that FTX’s hedge fund, Alameda Research, appeared to be insolvent. As a result of this news, competing crypto exchange Binance sold off its holdings of FTX’s own crypto token, FTT. FTX customers followed, with billions of dollars being withdrawn from the exchange.
According to the stock website, Unusual Whales, SBF initially launched his Substack with a paid subscription, asking readers for either $8 a month, $80 a year, or $150 for a “founding” yearly subscription. The payment plans have since been removed entirely from SBF’s Substack.
Bankman-Fried is currently out on a $250 million bond, awaiting trial at his parents’ home per the condition of bail.
FTX’s Sam Bankman-Fried Borrowed From Alameda To Buy Robinhood Shares
Crypto lender BlockFi, which like FTX has filed for bankruptcy, alleged in a court document (PDF) that it was owed the rights to the Robinhood shares due to a deal Bankman-Fried made in early November. The shares were pledged as collateral against a loan taken out by Alameda Research — the same firm whose funds were used to purchase the shares to begin with, according to Tuesday’s filing.
Read more of this story at Slashdot.
Crypto collapse: FTX’s fall is one piece of a long, cold, contagious crypto winter
FTX is just the latest company facing an uncertain future as cryptocurrency values drop, revealing flaws in risky financial strategies that fueled the recent crypto and NFT boom.
Alameda’s Caroline Ellison, FTX’s Gary Wang Plead Guilty To DOJ Fraud Charges
In a statement, SEC Deputy Enforcement Director Sanjay Wadhwa said the three “were active participants in a scheme to conceal material information from FTX investors, including through the efforts of Mr. Bankman-Fried and Ms. Ellison to artificially prop up the value of FTT, which served as collateral for undisclosed loans that Alameda took out from FTX pursuant to its undisclosed, and virtually unlimited, line of credit.” Highlighted in the complaint are multiple times when Bankman-Fried made public statements, and provided investors with documentation via audited financial statements, that Alameda received no preferential treatment from FTX.
Ellison was a close confidant of Bankman-Fried’s, and has been targeted by prosecutors for her role in manipulating FTX’s exchange token FTT, which Alameda had used as collateral for investments. In early December Ellison, who is thought to reside in Hong Kong or Nassau, was spotted in Manhattan at a coffee shop leading many to suspect she was working with authorities. Shortly after, Ellison retained the law firm WilmerHale to represent herself. WilmerHale counts Stephanie Avakian, a former director of the SEC’s Division of Enforcement, as one of its top attorneys. Further reading: FTX Founder Bankman-Fried To Be Released on a $250 Million Bond Package While He Awaits Trial
Read more of this story at Slashdot.