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Tag: FTX Exchange

  • Convicted FTX Founder Tries to Rewrite History Again: Critics Instantly Tear Him Apart

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    Disgraced FTX founder Sam Bankman-Fried once again weighed in on the exchange’s bankruptcy debate after responding to a satire post by a company creditor that accused court-appointed CEO John J. Ray III of deliberately keeping a “perfectly solvent” platform in bankruptcy in order to generate record fees and destroy estate value.

    The creditor alleged that billions in valuable equity and venture stakes were sold at deep discounts, and that assets were mishandled, clawbacks mismanaged, and subsidiaries forced into bankruptcy without board authority. SBF’s X account replied,

    “I don’t quite agree with every point – but, yeah, this is basically what happened. I’m not saying FTX’s solvency or the Debtors’ mismanagement are the reasons I’m innocent (although it’s a piece of the story!). But the Debtors are still withholding funds.”

    No Remorse, No Accountability

    His comments immediately triggered a backlash. On-chain investigator ZachXBT responded by demanding answers about the alleged $40 million transfer to Chinese authorities that he says Bankman-Fried hid from the public.

    Meanwhile, venture capitalist Adam Cochran said Bankman-Fried continues to show no remorse for his role in the collapse, arguing that his attempts to reframe the events are exactly why he deserves harsh punishment and does not get to rewrite history.

    The latest episode comes just days after a fresh court setback for Bankman-Fried, with judges on the 2nd Circuit in New York offering little indication they were persuaded by his appeal claims. During a hearing on Tuesday, SBF’s attorney, Alexandra Shapiro, argued his conviction should be overturned because the first trial was “fundamentally unfair,” but the three-judge appeals panel repeatedly pushed back and questioned whether he had any grounds strong enough to overturn a jury verdict in a case involving billions in losses. Judge Barrington Parker told Shapiro,

    “From my reading of the record, (there was) very substantial evidence of guilt. Are you seriously suggesting to us that if your client had been able to testify about the role that attorneys played in preparing these various documents, the not-guilty verdicts would have rolled in?”

    SBF’s Prison Narrative

    The renewed online fight also follows the sudden reactivation last month of the convicted former billionaire’s X account, which posted a 14-page document claiming FTX was “never insolvent.” He had asserted that outside lawyers and political forces sabotaged a solvable liquidity crunch.

    The document insisted that the bankruptcy estate misrepresented FTX’s balance sheet, and that its locked portfolio today would be worth well over $100 billion. That narrative was also widely rejected by experts who said the claims were similar to arguments the jury had already heard in 2023. The backlash then and now shows no signs of fading.

    The post Convicted FTX Founder Tries to Rewrite History Again: Critics Instantly Tear Him Apart appeared first on CryptoPotato.

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    Chayanika Deka

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  • SBF Claims Biden Administration Targeted Him for Political Donations: Critics Unswayed

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    Critics are not convinced by SBF’s latest antics and argue that his narrative is a well-funded lobbying attempt to recast the FTX collapse as political persecution.

    Sam Bankman-Fried, the disgraced FTX founder now serving a 25-year sentence for defrauding billions from customers, has reignited controversy by framing his 2022 arrest as politically motivated.

    In a recent GETTR post, reportedly shared via a friend, SBF claimed that his shift from center-left to centrist political views and subsequent large donations to Republican causes triggered targeted action from the Biden administration.

    SBF’s New Conspiracy

    According to him, the Securities and Exchange Commission (SEC) under Chair Gary Gensler and the Justice Department moved quickly to arrest him just weeks before an important crypto bill vote and on the eve of his scheduled congressional testimony.

    House Republicans at the time reportedly questioned the timing and had suggested that the arrest was strategically aimed at silencing him. They also requested internal communications from Gensler that allegedly “conveniently” went missing. The SEC’s Office of Inspector General later explained that a poorly understood automated IT policy had wiped Gensler’s government-issued device, which ended up erasing text messages between October 2022 and September 2023.

    Despite his conviction on multiple fraud and conspiracy counts in November 2023, SBF and his family maintain that he was wrongly prosecuted. His parents, Joseph Bankman and Barbara Fried, were reported to be exploring avenues for a presidential pardon from Donald Trump, who had previously pardoned Ross Ulbricht of Silk Road.

    In interviews following his sentencing, SBF has consistently distanced himself from left-leaning politics while expressing support for Trump, even granting a prison interview with conservative commentator Tucker Carlson, which prompted his crisis manager to resign. He has openly rejected the notion of guilt for himself and co-defendants, and described the convictions as unfair and politically influenced.

    Overfunded Lobby Effort Behind the Spin

    Observers and critics, however, remain highly skeptical of these claims. Many view this narrative as a well-funded lobbying effort designed to recast SBF as a victim of partisan politics rather than the architect of one of the largest financial collapses in crypto history.

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    Far-right activist and staunch Trump supporter Laura Loomer warned that the ongoing media push will continue to paint him as unfairly targeted by the Biden administration, despite overwhelming evidence of wrongdoing.

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    Chayanika Deka

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  • SBF’s ‘gm’ Tweet Sparks Speculation of Comeback Amidst New Solana-Based Perp Dex

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    A “gm” tweet from Sam Bankman-Fried has sparked speculation of his crypto comeback, linking him to a new Solana-based perpetual futures DEX launched by a former FTX COO.

    The project is using a “tokenless” model that rewards users with points, drawing parallels to SBF’s past success with the “Solana playbook.”

    The Solana Playbook

    The SBF connection gained momentum after he broke months of silence with a simple “gm” post from his official X handle, which quickly went viral. The timing also overlapped with a rally in the ASTER token, drawing parallels with SBF’s infamous early bet on Solana in his 2023 trial testimony.

    At his 2023 criminal trial, SBF testified that he had invested in Solana (SOL) at $0.20 per token, which increased to over $15 billion at its peak. That gain drove FTX’s early success and later downfall, as the token’s decline added to the exchange’s liquidity crisis.

    With ASTER’s recent rampage, some observers see similarities to that playbook. The question is whether the rally is random, or if SBF or people in his inner circle could be peripherally involved in trying to replay the Solana trade.

    The Tokenless Experiment

    Pacifica is a Solana permanent DEX with leveraged trading, but the twist is that it’s a tokenless launch. Instead of launching a cryptocurrency, it rewards users weekly with 500,000 points unlocked each Thursday.

    This is a growing trend in DeFi, where developers build liquidity and user bases quietly, often hinting at a future token airdrop.

    Crypto Twitter claims the project is run by a former FTX COO. Constance Wang held the role before the collapse of FTX, but whether she is actively involved in the project  has not been verified yet.

    On September 23, 2025, Bankman-Fried’s “gm” tweet went viral overnight: 7 million views, 16,000 likes, and thousands of reposts in hours. “Gm” is a crypto culture shorthand greeting, but with this tweet, it had symbolic importance. From crypto’s most divisive character, it excited and enraged the community, re-opening questions about his potential role in the next cycle.

    The surge in rumors linking Pacifica, ASTER, and SBF has gotten intense attention. If speculation proves true and FTX insiders return to DeFi, it could attract scrutiny from regulators and the $8 billion in FTX collapse victims. Yet, crypto markets have a long history of embracing redemption narratives, with traders often willing to speculate on new ventures regardless of their founders’ pasts.

    So far, the connections remain circumstantial “dots,” according to one analyst, but even indirect ties to SBF are enough to stir markets. Whether Bankman-Fried is actively shaping Pacifica or only influencing from afar, the timing of his viral tweet, ASTER’s pump, and the launch of a tokenless Solana perpetual DEX has caused widespread speculation across the crypto community.

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    Wayne Jones

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  • FTX Recovery Trust Announces Third $1.6B Creditor Distribution

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    The FTX Recovery Trust, the organization tasked with repaying former customers and creditors of the defunct exchange, has announced a third distribution of nearly $1.6 billion.

    According to a press release on Friday, the distribution will begin on September 30. Funds will be transferred to creditors’ accounts via BitGo, Kraken, or Payoneer within three business days.

    Retail Customers First

    The repayment plan prioritizes two distinct groups of creditors. The first is the convenience class, which consists of smaller creditors and retail traders. This group makes up the majority of FTX’s customer base and, surprisingly, will recover approximately 120% of their claims, ultimately receiving more than they lost.

    In contrast, the non-convenience class, consisting of larger institutional players with more complex claims, will receive smaller payouts. This approach highlights a clear priority within the repayment plan, protecting retail customers first.

    The latest round of payouts will increase the total recovery for various creditor groups. U.S. customers will receive an additional 40% of their claims, bringing their total recovery to 95%. Similarly, Dotcom customers, who used the exchange’s international arm, are set to receive a further 6% payout, raising their total to 78%.

    Furthermore, general unsecured and digital asset loan claims will be compensated at a rate of 24%, increasing their overall recovery to 85%. Lastly, for the convenience class, which is composed primarily of small creditors and everyday traders, their claims will be paid out at 120% of face value, meaning they will recover more than their initial losses.

    Repayments History and Market Impact

    The FTX Recovery Trust has been steadily working to make things right, with over $6.2 billion already paid out to creditors this year alone, a $1.2 billion distribution in February followed by a massive $5 billion payout in May. With assets valued at a staggering $16.5 billion set aside, the trust is showing its commitment after court approval to reduce the disputed claims.

    Although there were concerns about the first two repayments causing short-term volatility, the actual impact was minimal. Many creditors, particularly the retail “convenience class,” received their payouts in fiat currency rather than crypto. This decision, while frustrating for those who missed out on the crypto market’s significant rebound since late 2022, largely prevented a sudden sell-off of major assets like Bitcoin or Ethereum.

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    Wayne Jones

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  • Former Alameda Research CEO Caroline Ellison’s Sentencing Revealed

    Former Alameda Research CEO Caroline Ellison’s Sentencing Revealed

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    Caroline Ellison was sentenced to two years in federal prison on Tuesday for her involvement in the FTX fraud scandal.

    The 30-year-old was also ordered to forfeit $11 billion, which she earned through her association with the now-collapsed cryptocurrency exchange.

    Ellison’s Cooperation

    Judge Lewis A. Kaplan, who presided over the case, acknowledged the former Alameda Research CEO’s cooperation with the prosecution, “I’ve never seen a cooperator quite like Miss Ellison,” he remarked. Despite this, Kaplan emphasized that the scale of the FTX fraud meant she could not avoid prison time. “Cooperation isn’t a ‘get out of jail free’ card in a case of this magnitude,” he added.

    Her sentence includes three years of supervised release upon completing her prison term, which she could serve at a minimum-security facility near Boston. Due to the federal nature of her crime, she has to serve at least 75% of her sentence before being eligible for parole.

    Prosecutors described Ellison’s testimony as crucial to Bankman-Fried’s conviction, calling it the “cornerstone” of the case in a memo before Tuesday’s hearing. Assistant U.S. Attorney Danielle Sassoon also highlighted this, contrasting her remorse with his lack of accountability.

    Her attorneys also argued that her “extraordinary cooperation” and low risk of reoffending should result in a more lenient sentence. Her legal team and probation department had previously recommended time served plus three years probation.

    Her lawyer, Anjan Sahni, said Ellison had been manipulated by SBF, with whom she had a past romantic relationship, and that she had since “recovered her moral compass.” Judge Kaplan added, “You were vulnerable, and you were exploited.”

    SBF’s Appeal for New Trial

    Meanwhile, the FTX  founder is seeking a new trial with a different judge, claiming bias in his previous case. His legal team has filed an appeal, arguing that Judge Kaplan, who presided over the original trial, showed a prejudicial attitude that they believe impacted the verdict.

    Additionally, a group of doctors submitted a brief supporting his appeal, citing his neurodivergent conditions, including autism spectrum disorder (ASD) and ADHD. They argued that his conditions, combined with a lack of access to necessary medication during the trial, affected his ability to communicate effectively and contributed to his conviction.

    Before being sentenced, Ellison was remorseful, apologizing to FTX’s former customers, her family, and colleagues.”The human brain is bad at comprehending big numbers,” she said. “I can’t even begin to imagine the pain I’ve caused.”

    She concluded, “If you had told me back in 2018 that I would end up pleading guilty to fraud, I would have told you you were crazy… At each stage of the process, it became harder and harder to extricate myself…I’m sorry I wasn’t brave.”

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    Wayne Jones

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  • Former FTX Exec Ryan Salame Requests 18 Months Prison Sentence

    Former FTX Exec Ryan Salame Requests 18 Months Prison Sentence

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    The lawyers of Ryan Salame, a former executive of the bankrupt cryptocurrency exchange FTX, who pleaded guilty to his role in the firm’s collapse, have requested that a court sentence their client to 18 months in prison in an upcoming hearing scheduled for May 28.

    According to a sentencing memorandum seen by Inner City Press, Salame’s attorneys are asking the court for leniency in the form of the recommended jail term in addition to the restitution and forfeiture obligations to which their client has agreed.

    Salame Seeks 18-Month Jail Term

    While Salame worked for FTX and its sister trading firm Alameda Research, he handled customer fiat conversions and wire deposits, managed political contributions, and led charitable initiatives using Alameda funds in The Bahamas.

    One year after the FTX empire imploded in November 2022, Salame pleaded guilty to criminal charges related to the events, including conspiracy to defraud the Federal Elections Committee and operating an unlicensed money-transmitting business. He also agreed to cooperate with United States authorities alongside his former colleagues Nishad Singh, Caroline Ellison, and Gary Wang.

    As part of the agreement, Salame paid a fine of $6 million to the U.S. government and $5 million to FTX debtors, forfeiting two Massachusetts homes and his 2021 Porsche car. The charges the former FTX executive pleaded guilty to could land him up to ten years in prison; however, his lawyers request a jail term of less than two years.

    Salame’s attorneys argued in the memorandum filing that their client’s role in FTX was more operational and less related to fraud. They said he did not know that the four core leaders of FTX and Alameda had conspired to lie and steal customers’ funds. The lawyers insisted that Salame did not lie or steal from anyone.

    Lawyers Say Salame Was Duped

    Furthermore, Salame’s legal counsel cited his cooperation with the U.S. government for the proposed lenient sentence, explaining that he was the first to alert authorities in The Bahamas when he learned about the FTX fraud. They said their client was remorseful and made efforts to deal with his substance abuse issues.

    In addition, the attorneys mentioned that Salame was duped and incurred financial losses as a result of FTX’s collapse.

    With FTX founder Sam Bankman-Fried having been sentenced to 25 years behind bars, which jail term the court would impose on Salame remains to be seen.

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    Mandy Williams

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  • Former FTX Exec Agrees to Transfer $5.9 Million Bahamas Property in Plea Deal

    Former FTX Exec Agrees to Transfer $5.9 Million Bahamas Property in Plea Deal

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    Former FTX Digital Markets co-chief executive Ryan Salame has agreed to transfer his multimillion-dollar property in the Bamas as part of a plea agreement in his case.

    The move comes after Salame pleaded guilty to criminal charges in September 2023, and his plea agreement required him to pay $5.6 million in restitution to the debtors.

    The Property Transfer

    According to a motion filed by FTX Trading Ltd and affiliated debtors with the United States Bankruptcy Court for the District of Delaware on May 1, Salame will give up a luxurious $5.9 million house he owns in the Bahamas.

    Instead of paying the restitution amount in cash, Salame proposes to satisfy the debt by transferring the legal title of the residence to FTX Digital Markets Ltd.

    The filing stated, “Salame will satisfy the Restitution Amount by transferring a residence he owns in the Bahamas, Unit No. 3A in the Marina Residences at Albany Building 10 Condominium (the “Residence”), to FTX DM.”

    Under the stipulation, Salame must take all the necessary steps to transfer the legal title of the residence to FTX DM. Once the legal title is transferred, the restitution amount will be deemed satisfied.

    The debtors argue that this arrangement is in their best interests. By avoiding a quick sale of the residence at a discount, they can protect their ability to monetize other Bahamian properties.

    The difference of $306,822.09 between the appraised value and the restitution amount will be credited against the amount Salame owes the debtors on the promissory note.

    Salame’s Transactions

    The court filing also revealed that Salame had agreed to purchase a property in September 2021 for $7.2 million. The initial 10% deposit was wired from an Alameda Research account at Silvergate Bank.

    Later, in November of the same year, FTX DM transferred $8.1 million from its Fidelity Bank in the Bahamas bank account to Salame’s real estate attorney. This payment was intended to cover the remaining balance of the property purchase price.

    In March 2022, Salame and Alameda entered into a promissory note, in which he committed to paying back the $8.1 million to the firm. FTX and Alameda faced challenges and ultimately collapsed in early November 2022, leading to bankruptcy filings shortly after.

    Salame was charged with conspiracy to make unlawful political contributions and defraud the Federal Election Commission. He was also involved in a conspiracy to operate an unlicensed money-transmitting business.

    His sentencing is currently scheduled for May 28, 2024. Meanwhile, the former FTX CEO, Sam Bankman-Fried, received a 25-year sentence in late March.

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  • FTX Gets Two Dozen Buyers to Sell Majority of its Stake in Anthropic for $884 Million

    FTX Gets Two Dozen Buyers to Sell Majority of its Stake in Anthropic for $884 Million

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    FTX is looking to sell a majority of its shares in artificial intelligence startup Anthropic to over 20 buyers, including an Abu Dhabi investment company and Jane Street Global.

    The sale could provide ample funds for the bankrupt crypto exchange to repay creditors affected by FTX’s collapse.

    FTX to Sell Over 29 Million Shares from its Anthropic Stake

    According to court documents on March 22, FTX would sell approximately 29.5 million shares in Anthropic to a total of 24 purchasers for $884,109,327.

    Topping the list of buyers is ATIC Third Investment Company LLC, which would purchase 16,664,167 shares for nearly $500 million. ATIC is a wholly-owned firm of the government-owned Abu Dhabi sovereign wealth fund, Mubadala.

    Jane Street Global, a global quantitative trading company where convicted FTX founder and former CEO Sam Bankman-Fried previously worked as a trader, will buy 3.3 million shares for almost $100 million.

    Other purchasers include certain funds managed by Fidelity Management and Research, which will spend $45 million to buy approximately 1.5 million shares, Craig Falls, and the Ford Foundation, among others.

    While the proposed sale is subject to the approval of the bankruptcy court, any objections should be filed by April 1, 2024.

    More Funds to Repay FTX Creditors

    In 2021, FTX made a $500 million investment in Anthropic, giving the bankrupt cryptocurrency exchange a 7.8% stake in the AI startup.

    FTX’s investment more than doubled in value in 2023 to around $1.4 billion after Anthropic’s value also skyrocketed, coupled with increased interest in the artificial intelligence sector. In February 2024, FTX got court clearance to sell its stake in Anthropic, which was previously halted in June 2023.

    In addition to the proceeds that would come from the proposed sale of the Anthropic shares, FTX also has $6.4 billion in its reserves. The funds could make it possible for creditors of the collapsed crypto firm to get repaid in full.

    In contrast to its profitable Anthropic investment, FTX’s proposed sale of one of its subsidiaries Digital Custody will come at a significant loss.

    The cryptocurrency exchange purchased Digital Custody for $10 million. However, following the exchange’s collapse in November 2022, the subsidiary would be sold for $500,000 to CoinList, whose CEO, Terrence Culver, initially made the sale to FTX.

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  • Pantera Capital Eyes $250 Million Opportunity with FTX Estate for SOL: Report

    Pantera Capital Eyes $250 Million Opportunity with FTX Estate for SOL: Report

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    Pantera Capital is reportedly in the process of securing funds from major investors to acquire heavily discounted Solana tokens from the bankruptcy estate of FTX. The company is raising capital for the Pantera Solana Fund, which presents an attractive opportunity to purchase up to $250 million worth of SOL tokens from the FTX estate.

    Marketing materials from February, obtained by Bloomberg, reveal that investors would have the option to buy SOL at a price 39% below the 30-day average or at $59.95. However, in exchange for this option, investors would need to commit to a vesting period of up to four years.

    Pantera Solana Fund

    According to the investor pitch, Pantera initially aimed to finalize the fund’s closure by the end of February. A source familiar with the matter mentioned that the $5.2 billion crypto-focused asset manager managed to raise some funds by the deadline. However, the individual refrained from disclosing the exact dollar amount.

    FTX, which entered Chapter 11 bankruptcy proceedings in US courts in November 2022, possesses 41.1 million SOL coins, valued at $5.4 billion as of Wednesday’s closing price. This accounts for about 10% of the total SOL supply, according to Pantera’s presentation.

    The latest proposal from the digital assets-focused hedge fund would enable FTX liquidators, led by John J. Ray III, to sell SOL to generate funds for creditors while avoiding immediate pressure on the token’s price.

    Investors must contribute a minimum of $25 million each, with the understanding that the SOL tokens they receive will be initially restricted and will unlock over a four-year period.

    Additionally, Pantera intends to implement a management fee of 0.75% and a performance fee of 10%, as outlined in the materials.

    Solana and FTX’s Relationship

    Sam Bankman-Fried showed significant support for Solana, actively endorsing projects within its ecosystem. His enterprises accumulated substantial amounts of the blockchain’s native token, SOL, from both the Solana Foundation, a nonprofit organization backing the blockchain, and Solana Labs, the blockchain’s developer.

    Bankman-Fried even initiated Serum, a decentralized exchange established on Solana’s blockchain, and also provided investment in various projects operating on Solana’s network.

    As a result, SOL turned out to be one of the biggest losers after FTX plunged into bankruptcy.

    The Solana Foundation had approximately $1 million in cash or cash equivalents held on FTX.com when the trading platform halted customer withdrawals in early November. This amount represented less than 1% of the foundation’s total cash or cash equivalents, and there were no SOL tokens held in custody on the exchange.

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  • FTX to Sell Off Digital Custody at a Very Steep Markdown

    FTX to Sell Off Digital Custody at a Very Steep Markdown

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    After entertaining the possibility of restarting FTX following the bankruptcy process for a long time, lawyers for the defunct exchange have announced that that plan is now scrapped, and the company will simply dissolve once all debts are paid off.

    Andrew Dietrich, one of the lawyers representing FTX in the court case, stated that although repayment of creditors in full is not yet guaranteed, it is an objective that is definitely attainable.

    Creditors would only be receiving the dollar value of their crypto holdings. This may prove disappointing to investors, as the value of those assets has increased since the exchange went bust. However, it is precisely this development that allowed for full refunds in the first place. Additionally, the solution is legally sound and consistent with bankruptcy law.

    Selling The Company Back to The Previous Owner

    As company lawyers approach the home stretch in tallying up funds to be paid out, they’ve sealed yet another deal to sell off an FTX-owned entity.

    In this case, Digital Custody Inc., a Delaware-based firm with a South Dakota license allowing for custody of digital assets, will be sold for a mere $500,000 to CoinList. The funds will be provided by CoinList’s CEO, a man named Terrence Culver.

    However, there’s a catch: Terence Culver is also the man who originally sold Digital Custody to FTX for a total of $10 million.

    The sale was conducted via two separate transactions, each worth $5 million, one in December 2021 and one in August 2022.

    Digital Assets Is “Of No Use to FTX US”

    At the time, FTX US bought the company in order to facilitate custody of its own and client assets within the US.

    However, asset custody is no longer a concern for FTX since it will be winding down its business as soon as possible once all debts have been paid off.

    “DCI is also no longer useful to the Debtors’ business given the Debtors’ sale of LedgerX and that it is unlikely for the Debtors to sell or restart FTX US. As a result, selling or transferring the Interests pursuant to the proposed Sale Transaction in a private sale is the most efficient and cost-effective way of minimizing costs to the estates while maximizing the value for the benefit of the estates.”

    The committees representing non-US creditors of FTX have also signed off on the sale. FTX can continue to look for better deals until shortly before the date of the sale.

    If the buyer backs out of the deal, a reverse termination fee of $50k will be collected.

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    Cristian Lipciuc

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  • SIM Swappers Charged Over $400 Million FTX Hack Amid Bankcuptcy Filing

    SIM Swappers Charged Over $400 Million FTX Hack Amid Bankcuptcy Filing

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    In a court case that happened recently – and whose transcripts were made available today – the identities of those behind the $400 million FTX exploit that took place shortly after the bankruptcy was declared were uncovered.

    However, FTX was not the sole victim of the hacks. According to the court documents, a total of 50 victims were exploited by the SIM-swapping trio consisting of Robert Powell, Carter Rohn, and Emily Hernandez.

    Russian Hypothesis Disproven

    Although FTX is only referred to in the proceedings as “Victim Company-1,” two confidential sources have come forward and stated that the company in question is indeed the failed exchange, according to Bloomberg.

    This information is further supported by security reports from Elliptic and Brian Krebs. Previously, Elliptic believed that the attack had been carried out by cybercriminal groups linked to Russia due to the specific way that the funds were moved. However, it turned out that that was not the case.

    The trio, also known by their noms-de-guerre “R$/ElSwapo1, Em, and Punslayer/Carti, allegedly gained access to the FTX wallets by obtaining the personal information of an employee, including his identification documents.

    Poor Security at Fault

    Using a doctored document bearing all the original information but with Hernandez’s photograph, the defendant was able to convince an AT&T employee in Texas to conduct the SIM swap.

    The FTX employees’ personal number was apparently enough to penetrate FTX’s notoriously Byzantine and/or lax security, as the authentication codes sent to this number allowed for direct access to the exchange’s hot wallets.

    “On or about November 11, 2022 (…), co-conspirators sent to Powell the various authentication codes needed to access Victim Company 1’s online accounts. (…) The co-conspirators gained unauthorized access to online accounts owned by the company. On November 11, and continuing into November 12, co-conspirators transferred over $400 million in virtual currency to wallets controlled by the co-conspirators.”

    At the time, Kraken’s head of cybersecurity claimed to know the identity of the user behind the hack due to attempts to cash the money out via the exchange he works for.

    It’s unclear whether this contributed to the eventual indictment of the SIM swappers, who committed a series of SIM swaps between March 2021 and April 2023, give or take.

    The defendants were indicted by a Washington court of conspiracy to commit wire fraud, aggravated identity theft, and access device fraud.

    An arrest warrant has been submitted in Powell’s name, and all proceeds of the crimes are subject to forfeiture once recovered.

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    Cristian Lipciuc

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  • FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT's Key Support Wavers

    FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT's Key Support Wavers

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    In a striking turn of events, the Internal Revenue Service (IRS) in the United States has presented a staggering tax bill of $24 billion against the bankrupt cryptocurrency exchange FTX. 

    FTX Challenges IRS’s $24 Billion Tax Bill

    According to court filings and FTX’s response to the IRS’s claims, several key arguments challenge the basis of the tax bill. Firstly, FTX highlights that its operations spanned three years, never distributing dividends or earnings. 

    Secondly, the exchange’s defense attorneys claim that the company incurred substantial losses rather than generating income that could support the IRS’s “exorbitant” tax claim. 

    Thirdly, the lawyers argue that FTX is currently in liquidation and is not engaged in any ongoing business activities apart from those required for the liquidation process. 

    Finally, the company emphasizes that the recovery sought by the IRS would ultimately come at the expense of FTX’s victims, as the funds would be redirected away from their rightful recipients. 

    As the court hearing approaches, FTX asserts that proceeding with a court-supervised estimation process would demonstrate the company’s significant losses during its operational period, rendering the IRS’s claim “baseless.” 

    FTX emphasizes that any forced payment would harm the victims of the FTX fraud, many of whom are already grappling with “profound losses.”

    FTX’s administrators have managed to recover approximately $7 billion in assets, including $3.4 billion in cryptocurrencies. These figures underscore the complex financial landscape surrounding the IRS’s claim against FTX.

    As the courtroom showdown ensues, the case outcome will undoubtedly have significant implications for the future of crypto taxation and the recovery prospects of FTX’s creditors. 

    FTT’s Bullish Trend Holds Strong

    As the cryptocurrency market experiences a significant correction following a bullish surge led by Bitcoin (BTC), FTX’s native token, FTT, has seen a decline of over 5% in the past 24 hours, adding to the company’s legal concerns.

    After a three-month accumulation phase that kept FTT trading in a range between $0.9 and $1.2 from September to the beginning of November, the token witnessed an impressive surge in the last month, reaching its highest price of the year at $6.042, a level not seen since November 2022.

    FTT’s loss of support at $5.1 on the daily chart. Source: FTTUSDT on TradingView.com

    However, the token has retraced to its current price mark of $4.8, with the next support level at $4.45 in case of further downward movement.

    On a positive note, FTT is trading above key moving averages, including the 200-day and 50-day MA, which provide support and indicate the potential for further upward price action.

    Furthermore, since the beginning of November, FTT has consistently recorded higher highs and higher lows, forming an uptrend pattern. This trend has been observed three times, with the token experiencing an uptrend, followed by a pullback for a support test, and then a continuation to reach new highs.

    Assuming this trend continues and the legal developments do not have a significant impact on the price of the token, FTT may be poised for a significant rise in the coming months, given the remarkable uptrend pattern seen on the daily chart.

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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  • IRS $24 Billion Tax Bill Could Wipe Out FTX Recovery, Will Be Disputed Today

    IRS $24 Billion Tax Bill Could Wipe Out FTX Recovery, Will Be Disputed Today

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    Once SBF stepped down, the new leadership of FTX scoured the bankrupt exchange’s databases, looking for misplaced and poorly labeled assets.

    Months later, John J Ray III and his team have managed to map out about $7 billion in assets, nearly half of which are in cryptocurrencies.

    The IRS Wants Its Share

    However, the new team at FTX isn’t the only one taking a closer look at the notoriously mismanaged finances – the taxman has been on the case as well. Furthermore, the IRS – who have already submitted two revisions to the original claim – state that the tax audit is still in progress, and the full figure owed is subject to change.

    Originally, the IRS claimed that FTX owed a whopping $44 billion. This amount was eventually amended all the way down to $24 billion spread across all entities in the FTX empire.

    The lion’s share of the allegedly unpaid taxes pertains to unpaid partnership taxes – in quantum of $20.4 billion – with payroll and other income tax obligations making up the remaining amount.

    Repeated Pushback

    FTX originally attempted to have the entire claim dismissed late last month, arguing that the tax bill is a pie-in-the-sky figure that far surpasses its earnings. Furthermore, tax returns filed by Ernst & Young on behalf of the FTX Group were also dismissed by the IRS.

    The original dismissal attempt was, understandably, rejected by the court.

    FTX has now filed a second document, stating that not only are the figures incorrect, but that they would also effectively ensure its creditors would pretty much never see a red cent returned to them.

    “This Alice in Wonderland argument has no support in the law. Just like any other claimant in a Chapter 11 bankruptcy, the IRS must provide a specific basis for its claims, with supporting documentation[…]. The Debtors are not expected to disprove that an office equipment vendor who says it provided an unspecified number of desk chairs is owed $24 billion, and the same is true for a supposedly massive tax liability that no one (including the IRS) can explain or support.”

    The IRS and FTX will face off in court today, the 12th of December. It’s worth noting that FTX appears to no longer be gunning for a complete dismissal.

    Instead, the exchange hopes for a more accurate – or at least better documented – figure filed by the U.S. tax regulator. The current figure, FTX lawyers argue, is “orders of magnitude greater” than the income the now-bankrupt crypto platform ever earned.

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  • Tether's (USDT) Market Cap Peaks at $90 Billion Amid Renewed Confidence

    Tether's (USDT) Market Cap Peaks at $90 Billion Amid Renewed Confidence

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    Tether (USDT) – the largest stablecoin globally, has experienced continuous growth in its market capitalization, reaching an all-time high of $90 billion on December 6th before retreating слигхтлъ to $89.9 billion. This surge suggests a renewed trust in the crypto market despite facing regulatory hostilities.

    Over the last month, the market cap has increased by around 6%, bringing the year-to-date growth to over 35% from a modest $66.24 billion, demonstrating its capacity to navigate market volatility and restore investor faith.

    The growth also signified an improvement in liquidity in the market with an influx of additional capital into the ecosystem.

    State of Stablecoins

    Following major incidents such as the Luna collapse in June 2022 and the Silicon Valley Bank (SVB) crisis in March, there was a significant decrease in the overall supply of stablecoins, signaling a lack of confidence in the market.

    However, from October 2023 onwards, there has been a consistent increase in the total stablecoin supply, indicating a positive shift. This upward trajectory serves as an early indicator of enhanced on-chain liquidity, suggesting a scenario where more capital is ready for deployment, according to the latest CoinMetrics report.

    USDC – the widely used stablecoin in decentralized finance (DeFi) applications – experienced a notable portion of its supply residing in smart contracts, reaching a peak of over $20 billion in March 2022. However, throughout the year, this figure slashed by half from its peak of $14 billion in March to $7 billion by December 2023.

    In contrast, Tether (on Ethereum), primarily held in externally owned accounts (EOAs), has demonstrated a different trajectory. Its involvement in smart contracts has expanded, increasing from $4 billion at the beginning of the year to surpass $6 billion.

    The report also found that the number of addresses holding greater than $100k USDC has declined to 13k addresses, while those for USDT on Ethereum remain relatively stable.

    But USDT on the Tron network has a completely different story. Tether on Tron witnessed a steady growth in adoption, with nearly 40k addresses holding greater than $100k. Such a trend can be attributed to its cheaper transaction fees and potentially increasing use in developing economies across parts of Latin America, Africa, and Asia.

    Spot Trading Volume

    There has been a significant uptick in stablecoin spot trading volumes, highlighting their utility as a quote asset on both centralized and decentralized platforms. CoinMetrics found that USDT continues to dominate the trusted spot volumes, reaching $18.8 billion on November 15th.

    These volumes rank second only to those observed during significant market events such as the Terra, FTX, and SVB collapse.

    USDC volumes have also recently surged, reaching $2.5 billion in November – a record high in USDC trading volume.

    In contrast, the volumes for other stablecoins have declined, primarily due to the reduction in BUSD volumes, which Binance announced it would cease supporting this month.

    Overall, the upward trend in volume signifies a growing interest among traders and investors in gaining exposure to crypto assets with the potential for appreciation, particularly as the broader crypto markets are experiencing an upswing.

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  • FTX Seeks Court Approval to Wipe Out US IRS’s $24B Claim

    FTX Seeks Court Approval to Wipe Out US IRS’s $24B Claim

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    The bankrupt estate of FTX has made a bold move to challenge the United States Internal Revenue Service (IRS), seeking court approval to reduce a $24 billion claim against it to zero.

    According to FTX, this move is crucial to prevent the IRS claims from derailing the progression of its bankruptcy proceedings.

    FTX Seeks to Nullify IRS’s $24 Billion Claim

    Earlier this year, the IRS imposed a massive tax bill on FTX and its associated Alameda groups of companies, amounting to approximately $44 billion, prioritizing the claims of customers who suffered financial losses due to the exchange’s collapse.

    The IRS’s claims included two substantial amounts: a $20.4 billion and a $7.9 billion claim against Alameda Research LLC. These figures stem from allegations of unpaid partnership taxes, amounting to about $20 billion, and millions in unmet income and payroll tax obligations.

    Despite the initial claim, the IRS revised its demand, scaling it to $24 billion. However, in its November 29 filing, FTX contests this revised figure, describing it as grounded in “mere speculation and conjecture.”

    The firm highlighted that the IRS has not provided a clear basis for these estimates, as the agency’s audit teams have reportedly been unable to justify the calculations or share them with the debtors.

    FTX Challenges IRS’s $24 Billion Claim

    FTX’s argument against the IRS claim is based on the assertion that the amount is hugely inflated. The firm argues that the $24 billion claim is more than fifty times its total earnings, hundreds of times more than any plausible tax obligation, and several times the total value available for distribution to its creditors.

    Adding to the complexity, FTX revealed that the IRS had dismissed tax returns prepared by Ernst & Young LLP, a respected accounting firm, on the grounds of insufficient substantiation. This rejection raises questions about the IRS’s assessment methods and the validity of its claims.

    The insolvent exchange also expressed concerns that resolving the IRS claims could span multiple years, potentially leading to a lengthy legal battle that would hinder the progress of its bankruptcy proceedings.

    FTX advocates for the court to estimate the IRS claims at $0.00 to avoid such delays and ensure timely distributions to its customers and creditors. The firm asserts that such a move is crucial to prevent the IRS claims from derailing the progression of its bankruptcy proceedings.

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  • From Crypto To Catch: Disgraced FTX Founder Turns To Trading Fish In Prison

    From Crypto To Catch: Disgraced FTX Founder Turns To Trading Fish In Prison

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    According to a report by Business Insider, Sam Bankman-Fried (SBF), co-founder and former CEO of FTX, has adapted to the economic system of New York’s Metropolitan Detention Center (MDC), where he is currently awaiting sentencing on multiple felony counts. 

    The disgraced crypto-billionaire has reportedly been bartering, using food as currency in exchange for various services within the prison.

    Former FTX CEO SBF Trades Fish For Services

    Per the report, mackerel, a fish commonly referred to as “macks” among inmates, emerged as the currency of choice in federal prisons after cigarettes were banned. The fish’s popularity stems from its stability and value within the prison economy. 

    Formerly incarcerated individuals like attorney Larry Levin have accepted mackerel as payment from fellow prisoners, using it to acquire services such as beard trims and shoe shines. 

    The demand for mackerel became so significant that suppliers, including Global Source Marketing, witnessed increased sales, according to Business Insider.

    In a prison environment where inmates lack access to traditional or digital currency, products with steady value, such as certain food items and stamps, serve as substitutes for money. 

    Mackerel and other stable commodities like tuna become a means of exchange, with their value pegged to the dollar. This economic logic allows inmates to engage in various transactions while maintaining a semblance of a barter system.

    The use of fish as a medium of exchange in federal prisons has been widespread since 2004, following the cigarette ban. 

    Sam Bankman-Fried faces sentencing on March 28, 2024, for charges that include wire fraud and conspiracy to commit money laundering, with a potential prison term of up to 110 years. Additionally, SBF is set to stand trial for separate counts related to political bribery.

     FTT Surges with Impressive Gains

    FTT, the native token of the FTX cryptocurrency exchange, has seen a remarkable surge in value in recent weeks. With substantial gains across various timeframes and an impressive market capitalization of 1.5 billion, FTT has cemented its position among the top 50 tokens in the crypto market. 

    Over the past 24 hours, FTT has experienced a significant increase of 21%, showcasing the token’s upward momentum. This short-term surge is complemented by a strong performance over the past week, with a notable rise of 26%. 

    FTT’s uptrend over the past month on the 4-hour chart. Source: FTTUSDT on TradingView.com

    However, the real standout lies in FTT’s gains over the past 14 and 30 days. Within the last two weeks, FTT has skyrocketed by an impressive 100%, while the 30-day timeframe has seen an astounding surge of 315%. 

    These gains highlight the growing demand and investor interest in FTT as rumors of a possible reboot of the exchange circulate within the crypto community.

    Featured image from Bloomberg, chart from TradingView.com 

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    Ronaldo Marquez

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  • FTX and Alameda Divest $36 Million Worth of These Assets

    FTX and Alameda Divest $36 Million Worth of These Assets

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    FTX and Alameda have been actively divesting their holdings. Within the past 24 hours, both entities have transferred $36.01 million worth of MATIC and AVAX to various exchanges.

    This is a testament to their ongoing commitment to reaching settlements with creditors amidst the twists and turns of the bankruptcy battle.

    FTX Selling Spree Continue

    Based on Spot on Chain analytics, FTX deposited $36.01 million worth of MATIC and AVAX to different exchanges within 24 hours. Out of this total, Coinbase and FalconX received 22.6 million MATIC valued at $17.2 million, while FalconX alone obtained 975,859 AVAX with a value of $18.83 million.

    On Nov. 21, accounts associated with the defunct exchange FTX transferred approximately $3.16 million worth of Ethereum to the troubled former rival Binance. The transaction was facilitated through Wintermute Trading.

    Notably, they conducted test deposits on Nov. 21 to the digital asset trading platform FalconX as a preliminary step towards subsequent asset transfers.

    Additionally, on Nov. 17, FTX and Alameda-related addresses unstaked 11.5 million MATIC, valued at $9.24 million.

    FTX has effectively transferred $488 million across 48 distinct tokens since Oct. 24, indicating a marginal increase from Monday’s closing sum of $452 million.

    Based on the data, SOL has been the most transferred asset in the period, with about 6.9 million tokens worth $280.2 million moving between wallets. Others include ETH, MATIC, RNDR, LINK, DYDX, GRT, LDO, MKR, MANA, BAND, CHZ, SUCHI, ENS, MASK and more in that order.

    The recent continuous asset sale is part of FTX’s plan to settle its debts. A report indicates that some FTX creditors have recently been offered as much as $0.6 to $0.65 on the dollar, a 30% increase from what they were presented in October.

    FTX Case Taking Complex Twists

    FTX court dispute continues with more recent developments. A few days ago, the attorney for Brandon Williams, one of the defendants in the FTX saga, asked a Delaware court to delay the ongoing bankruptcy proceedings for more investigations on why the exchange ran insolvent. The defendant seeks to look at the events between November 2021 and October 2022 that led to the demise of FTX.

    However, Judge John Dorsey outrightly denied the motion, noting, “If the discovery is as complex as it is said to be, it needs to be started now, not delayed.”

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  • Bitcoin Price Plunge To $12,000 Is Not Foreseeable – Analyst Explains Why

    Bitcoin Price Plunge To $12,000 Is Not Foreseeable – Analyst Explains Why

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    The Bitcoin price performance was one of the brightest stories in the crypto market in the month of October. While some crypto analysts currently have bearish projections for the premier cryptocurrency, others have maintained a positive stance for BTC’s performance in November and beyond.

    A crypto analyst known by the pseudonym Mags on the X (formerly Twitter) platform recently offered an insight into Bitcoin’s price action, quelling bearish sentiments around the pioneer cryptocurrency.

    The Current Cycle Witnessed Its Own Black Swan Event

    Bitcoin enthusiasts and analysts have been closely monitoring the coin’s price movements, with some skeptics anticipating a significant drop to as low as $12,000. Mags, on the other hand, said on X that the recent slow but steady upward trajectory of Bitcoin suggests a different narrative.

    The crypto analyst posited that the current Bitcoin price action resembles a phase of vertical accumulation, hinting at the potential for a parabolic surge in the near future. Mags claimed that people waiting for a substantial price decline seem to be in disbelief.

    Furthermore, Mags suggested that most bearish projections are centered around the potential occurrence of a black swan event. For context, a black swan event refers to an unpredictable incident that is beyond what is normally expected of a situation and has potentially severe consequences.

    However, the analyst believes that the anticipated black swan event has already occurred. While the black swan event in the 2021 bull cycle was the COVID-19-induced market crash, the current bull cycle witnessed the FTX exchange collapse as its own black swan event.

    As a result of FTX’s collapse, Bitcoin price plunged to as low as $15,500. Nevertheless, BTC’s price has been on a gradual ascent and is back up by more than 120% since the market crash. This steady price rise reflects the cryptocurrency’s robust nature and its ability to bounce back from unforeseen setbacks.

    Bitcoin Price Overview

    The Bitcoin price has been on a tear in the past weeks, rallying by more than 25% in the last month. However, it is worth noting that the premier cryptocurrency has somewhat slowed down in the past few days, with only a 1.9% price increase in the past week.

    As of this writing, Bitcoin is valued at $34,765, reflecting a 1.5% price jump in the past 24 hours. Although the market leader breached the $35,000 mark and traveled to a high of $35,700 in the past week, it has struggled to maintain momentum and stay above $35,000.

    Bitcoin price at $34,758 on the daily timeframe | Source: BTCUSDT chart on TradingView

    Featured image from iStock, chart from TradingView

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    Opeyemi Sule

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  • Did You Know? Sam Bankman-Fried Lost Millions Worth of Ripple (XRP)

    Did You Know? Sam Bankman-Fried Lost Millions Worth of Ripple (XRP)

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    TL;DR

    • Sam Bankman-Fried supposedly lost $4 million in XRP from Alameda Research, underestimating the issue despite internal concerns.
    • The mishandling of the missing XRP eroded trust within Alameda Research’s executive team.
    • SBF was convicted on multiple fraud and money laundering charges, facing up to 115 years in prison, with his lawyer considering an appeal.

    What Happened With the Missing XRP?

    A recent Wall Street Journal coverage revealed that the former CEO of FTX – Sam Bankman-Fried (SBF) – had incurred substantial losses when trading Ripple’s native token. The $4 million worth of XRP had “simply vanished” from Alameda Research’s accounts since the 31-year-old American used the sister company to conduct the trading.

    SBF assumed that the amount had been transferred from an exchange in the United States to one in South Korea, with the latter “just dragging its feet in crediting it.” Other people involved in the operation supposedly insisted that Bankman-Fried cease trading so they could figure out where the tokens had gone.

    “At length, Sam agreed. He stopped trading for two weeks. The other members of the management team confirmed that millions of dollars’ worth of Ripple was indeed missing,” the report reads.

    One of Alameda’s managers said the team considered telling investors about the issue so they could think about their options, “but Sam hated that idea.” SBF continued to insist that the missing assets were no big deal, telling his staff that there was an 80% chance that the XRP stash would eventually turn up somewhere. 

    “After the fact, if we never get any of the Ripple back, no one is going to say it is reasonable for us to have said we have 80% of the Ripple. Everyone is just going to say we lied to them. We’ll be accused by our investors of fraud,” a fellow manager of the company stated. 

    By the spring of 2022, many other executives of Alameda Research “had grown to fear how little Sam worried about where exactly their money was.” The firm was making approximately 250,000 trades a day, but the system was not recording all of them. 

    According to the coverage, the missing XRP tokens were “the final straw” that ended the trust connection between Alameda’s team and SBF.

    SBF Might Spent His Life in Jail

    Bankman-Fried was recently found guilty on all charges: two counts of wire fraud, four counts of conspiracy to commit fraud, and one count of conspiracy to commit money laundering. This comes roughly a year after his cryptocurrency exchange collapsed, triggering multi-billion losses for investors, while many described this as one of the biggest financial frauds in the history of the USA. 

    His sentencing is scheduled for March 28 as he faces the ridiculous 115 years behind bars. SBF’s lawyer said his client respects the jury’s decision but is “very disappointed with the result,” suggesting a possible appeal on the conviction. 

     

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  • Sam Bankman-Fried admits he thought FTX would fail

    Sam Bankman-Fried admits he thought FTX would fail

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    Sam Bankman-Fried, founder of collapsed cryptocurrency exchange FTX, testified Friday that he believed his company would fail.

    Bankman-Fried testified in the U.S. District Court for the Southern District of New York that FTX was founded on the premise of offering a seamless solution to crypto investors. They could trade from one platform instead of relying on hundreds of wallets, he told jurors. But when the company struggled to get customers in the door, Bankman-Fried’s strategy shifted to selling to competitor Binance. That plan backfired when Binance created its own exchange platform.

    “I thought there was maybe a 20 percent chance of success,” Bankman-Fried testified, giving the company an 80 percent chance of shutting down within a few months.

    Bankman-Fried also testified Friday that he knew “basically nothing” about cryptocurrency before founding the exchange in 2019.

    The 31-year-old has pleaded not guilty to seven counts of fraud and conspiracy charges. Prosecutors allege that Bankman-Fried and others involved in FTX’s operations defrauded customers out of billions of dollars to cover losses and pay back loans owed by sister fund Alameda Research. Caroline Ellison, Bankman-Fried’s one-time girlfriend, testified against him earlier this month.

    Bankman-Fried’s Former Girlfriend Testified Against Him

    As Newsweek previously reported, Caroline Ellison, 28, Bankman-Fried’s former girlfriend and the one-time chief executive officer of Alameda Research, FTX’s sister exchange, testified against Bankman-Fried in mid-October. Ellison said that she worked with Bankman-Fried to steal billions of dollars from customers to cover losses and debt owed by Alameda.

    During her testimony, prosecutors accused Bankman-Fried of bullying Ellison by scoffing, laughing and shaking his head.

    FTX’s downfall

    FTX fell apart in November 2022.

    First, industry news outlet CoinDesk published an article that said Alameda held a significant amount of FTX’s cryptocurrency token, FTT. This caused FTX competitor Binance to announce its plans to sell its FTT, sending the market price of FTT into a spiral. Customers then sought out withdrawals as the price crashed, causing FTX to scramble to keep up with withdrawal requests.

    Binance, which had signed an offer to buy FTX, quickly withdrew it, and before long, anonymous sources were telling outlets like The Wall Street Journal and The New York Times that as much as $8 billion in customer funds were unaccounted for.

    FTX Founder Sam Bankman-Fried arrives at Manhattan Federal Court on July 26, 2023. Bankman-Fried admitted in October that he thought FTX would fail.
    Michael M. Santiago/Getty Images

    FTX, Alameda Research and about 100 affiliated entities filed for bankruptcy on November 11, 2022. Around that time, anonymous sources told The Wall Street Journal that FTX siphoned $10 billion in customer funds to Alameda Research, stating Bankman-Fried, Ellison and others knew about this.

    Right after FTX’s bankruptcy, Bankman-Fried resigned. And then, about $473 million of FTX’s crypto assets were wiped out in what FTX characterized as “unauthorized transactions.” The price of Bitcoin tumbled to its lowest level since 2020.

    In mid-December of 2022, Bankman-Fried was arrested in the Bahamas after prosecutors filed criminal charges against him. Shortly after Bankman-Fried’s arrest, Ellison and FTX chief technology officer Gary Wang pleaded guilty to fraud charges.