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FTX Users To Receive 112% BACK,  FTX Claims BILLIONS MORE "Left Over" - Bankman-Fried Family Say TRIAL WAS UNFAIR, Sam Did NOT Lose Any User Funds...

Author: noreply@blogger.com (Silicon Valley Newsroom)
United States
Jun 26, 2024 04:15

FTX Users To Receive 112% BACK, FTX Claims BILLIONS MORE "Left Over" - Bankman-Fried Family Say TRIAL WAS UNFAIR, Sam Did NOT Lose Any User Funds...

This story somehow never runs out of surprising twists, and this one is massive.

Look back on almost any news coverage, or old posts in online crypto communities made by your average trader - in everyone's mind this was a story about people losing billions.  At one point it was probably true, when the market had just been hit with the Terra/Luna collapse There's no downplaying how much this story changes when it no longer involves anyone losing money.

At one point, every FTX user who had funds sitting on the exchange when it shut down believed they had lost money, with many expecting to hear all of it was gone. 

Searching old posts in online crypto communities made at the time FTX halted trading show there was little hope they would recover any funds they left in FTX controlled wallets.

Now we finally know how the story ends for the users of FTX - they're getting all of it back, and then some.

FTX Owes $11.2 Billion - All of That and More is Ready to Be Paid Out Immediately...

Under new leadership following FTXs bankruptcy claim and the arrests of its former executives, liquidation of company assets began. This involved mainly dumping massive amounts of crypto over the last few months, enough where the $11.2 billion owed already sits in US dollars they can access anytime. But theres more to come, as they claim to still have another $2+ billion in crypto that cannot yet be sold.

Sam participated in a common practice among VCs where projects offer them a chance to invest early by buying coins at an extremely low price. However, these coins are 'locked' and unable to be traded until a future date.

The biggest chunk of FTX's recent windfall of cash comes from Sam's early investment into Solana, where hes rumored to have paid 0.20 cents per coin - theyre worth $133 each today, but FTX's bankruptcy team supposedly dumped a large amount when it was trading closer to $200.

Solana was the largest source of funds, worth billions, but FTX held millions of dollars worth of dozens of other coins, selling these off totaled several more billion dollars.

The end result - FTX can pay back all users right now, with a little extra. 

Sam and His Supporters Say This Changes Everything... 

According to his family, Sam is in prison wrongly labeled as someone who caused investors to lose billions. Now that the trial and sentencing are done, we learn no one lost anything, and they're even walking away with a small profit - this is a completely different situation than what he was sent to prison for.

32-year-old Sam is serving a sentence of 25 years, the prime of his life wasted - this is a punishment designed for someone who caused countless people to lose their hard earned money. 

He'll be 57 when released, that is if he survives prison, as his family says his 'social awkwardness' puts him at high risk of becoming the victim of 'extreme violence' from another inmate confusing Sam's awkwardness for rudeness. His cellmate from the NY jail that held Sam during the trial says there were times other inmates indeed targeted him.

Before Sentencing, The Judge Allowed Some FTX Users To Share Stories of How Their Lives Were Ruined...

At the time, the final outcome was still unknown. These users gave stories of their lives being ruined, stating things like "decades worth of savings" were gone forever because of Sam's actions.

These were the kind of stories the judge heard right before sentencing Sam to 25 years in prison.

It does make you wonder - would the sentence be different if these former FTX users only had stories of their funds being inaccessible, then eventually getting all of it back, with a small profit? Honestly, I have a hard time believing it wouldn't.

But Maybe This Shouldn't Change Anything...

Let's imagine the worst-case scenario. Sam, like everyone else, cannot actually predict the future. While his early investments into projects like Solana are bringing in billions in profits today, things also could have gone the other way.

You can say he made smart investments that paid off, as he knew they would, so from his point of view no user funds were ever at risk. But there's just some things he couldn't have known no matter how much research he put into his decisions. For example, what if Solana faced a massive hack? We've seen hacks ruin projects that had the potential to end up among the top 10 tokens - no one can predict the discovery of a new security vulnerability.

If an unforeseen hack did bring down Solana, this would be a story of FTX billions short on what they owe.

So, while things end with no one losing money, Sam did, in fact, gamble with user funds and expose them to potentially losing all of it.

On that note, while he was risking other people's money, did he plan to share the rewards if it all worked out? Of course not. Sam quietly 'borrowed' user funds without them knowing, he would have taken the profits and return what he had borrowed just as quietly as he took it.

We've all Been Damaged By Sam's Actions...

I was not an FTX user, but that didn't matter as we all watched our portfolios go into a nosedive the day FTX halted trading, and those losses weren't recouped for over a year.

But what many are unaware of is that the damages actually continue to the present day. The reason FTX has so much money right now because they dumped their massive stash of coins on the market over the last year, often at times the market was on the rise, bringing that rise to a halt.

In fact, FTX is the reason why we saw Bitcoin ETFs bringing billions of new investments into the market, and the price of Bitcoin barely move. Sam had purchased shares of Grayscale's Bitcoin Trust which automatically was converted into shares of Grayscale's ETF, so when the ETF went live FTX had 22 million shares of it - which they immediately dumped onto the market.

But it was FTX's Solana holdings that became worth billions while Sam was on trial - there's no way to know what Solana's price would be today if FTX hadn't dumped billions of dollars worth - but higher for sure, possibly much higher.

Fact is - Sam is a Liar...

Ironically, his largest broken promise is in print, on one of Sam's strangest marketing decisions.


The FTX condoms that read Never breaks...even during large liquidations" - ironically describing the exact conditions that would indeed break FTX.  

In Closing...

This is all still sinking in, but when I think about Sam being in prison right now, it feels justified. He deserves some punishment.  Where I'm torn is if in 15 or 20 years from now, I'll feel like it's justified that he's still there. 

From a legal standpoint, the end result of a crime usually makes a massive difference.  For example, imagine someone driving the wrong way on a freeway because they're extremely drunk, and they manage not to kill anyone only because the other drivers swerved to avoid them. Then imagine the same scenario but in this one, the drunk driver kills an innocent driver in a head on collision.  Even though we're fully aware that both literally made the exact same poor choices - one could end up in prison for a few months, and the other for decades.

Ultimately, the choices Sam made led him here, making it hard to feel sorry for him now. So while I won't be campaigning to #FreeSam, I also wouldn't be angry to hear Sam's legal team was able to have the sentence re-evaluated, and reduced by a few years.

If you were the judge overseeing the case - what, if anything, would you change given what you know today? We want to know - share your answer with us on X @TheCryptoPress

---------------
Author: Ross Davis
Silicon Valley Newsroom
GCP Breaking Crypto News

Subscribe to GCP in a reader

FTX Users To Receive 112% BACK,  FTX Claims BILLIONS MORE "Left Over"...

Author: noreply@blogger.com (Silicon Valley Newsroom)
United States
Aug 23, 2024 04:15

FTX Users To Receive 112% BACK, FTX Claims BILLIONS MORE "Left Over"...

This story somehow never runs out of surprising twists, and this one is massive.

Look back on almost any news coverage, or old posts in online crypto communities made by your average trader - in everyone's mind this was a story about people losing billions.  At one point it was probably true, when the market had just been hit with the Terra/Luna collapse There's no downplaying how much this story changes when it no longer involves anyone losing money.

At one point, every FTX user who had funds sitting on the exchange when it shut down believed they had lost money, with many expecting to hear all of it was gone. 

Searching old posts in online crypto communities made at the time FTX halted trading show there was little hope they would recover any funds they left in FTX controlled wallets.

Now we finally know how the story ends for the users of FTX - they're getting all of it back, and then some.

FTX Owes $11.2 Billion - All of That and More is Ready to Be Paid Out Immediately...

Under new leadership following FTXs bankruptcy claim and the arrests of its former executives, liquidation of company assets began. This involved mainly dumping massive amounts of crypto over the last few months, enough where the $11.2 billion owed already sits in US dollars they can access anytime. But theres more to come, as they claim to still have another $2+ billion in crypto that cannot yet be sold.

Sam participated in a common practice among VCs where projects offer them a chance to invest early by buying coins at an extremely low price. However, these coins are 'locked' and unable to be traded until a future date.

The biggest chunk of FTX's recent windfall of cash comes from Sam's early investment into Solana, where hes rumored to have paid 0.20 cents per coin - theyre worth $133 each today, but FTX's bankruptcy team supposedly dumped a large amount when it was trading closer to $200.

Solana was the largest source of funds, worth billions, but FTX held millions of dollars worth of dozens of other coins, selling these off totaled several more billion dollars.

The end result - FTX can pay back all users right now, with a little extra. 

Sam and His Supporters Say This Changes Everything... 

According to his family, Sam is in prison wrongly labeled as someone who caused investors to lose billions. Now that the trial and sentencing are done, we learn no one lost anything, and they're even walking away with a small profit - this is a completely different situation than what he was sent to prison for.

32-year-old Sam is serving a sentence of 25 years, the prime of his life wasted - this is a punishment designed for someone who caused countless people to lose their hard earned money. 

He'll be 57 when released, that is if he survives prison, as his family says his 'social awkwardness' puts him at high risk of becoming the victim of 'extreme violence' from another inmate confusing Sam's awkwardness for rudeness. His cellmate from the NY jail that held Sam during the trial says there were times other inmates indeed targeted him.

Before Sentencing, The Judge Allowed Some FTX Users To Share Stories of How Their Lives Were Ruined...

At the time, the final outcome was still unknown. These users gave stories of their lives being ruined, stating things like "decades worth of savings" were gone forever because of Sam's actions.

These were the kind of stories the judge heard right before sentencing Sam to 25 years in prison.

It does make you wonder - would the sentence be different if these former FTX users only had stories of their funds being inaccessible, then eventually getting all of it back, with a small profit? Honestly, I have a hard time believing it wouldn't.

But Maybe This Shouldn't Change Anything...

Let's imagine the worst-case scenario. Sam, like everyone else, cannot actually predict the future. While his early investments into projects like Solana are bringing in billions in profits today, things also could have gone the other way.

You can say he made smart investments that paid off, as he knew they would, so from his point of view no user funds were ever at risk. But there's just some things he couldn't have known no matter how much research he put into his decisions. For example, what if Solana faced a massive hack? We've seen hacks ruin projects that had the potential to end up among the top 10 tokens - no one can predict the discovery of a new security vulnerability.

If an unforeseen hack did bring down Solana, this would be a story of FTX billions short on what they owe.

So, while things end with no one losing money, Sam did, in fact, gamble with user funds and expose them to potentially losing all of it.

On that note, while he was risking other people's money, did he plan to share the rewards if it all worked out? Of course not. Sam quietly 'borrowed' user funds without them knowing, he would have taken the profits and return what he had borrowed just as quietly as he took it.

We've all Been Damaged By Sam's Actions...

I was not an FTX user, but that didn't matter as we all watched our portfolios go into a nosedive the day FTX halted trading, and those losses weren't recouped for over a year.

But what many are unaware of is that the damages actually continue to the present day. The reason FTX has so much money right now because they dumped their massive stash of coins on the market over the last year, often at times the market was on the rise, bringing that rise to a halt.

In fact, FTX is the reason why we saw Bitcoin ETFs bringing billions of new investments into the market, and the price of Bitcoin barely move. Sam had purchased shares of Grayscale's Bitcoin Trust which automatically was converted into shares of Grayscale's ETF, so when the ETF went live FTX had 22 million shares of it - which they immediately dumped onto the market.

But it was FTX's Solana holdings that became worth billions while Sam was on trial - there's no way to know what Solana's price would be today if FTX hadn't dumped billions of dollars worth - but higher for sure, possibly much higher.

Fact is - Sam is a Liar...

Ironically, his largest broken promise is in print, on one of Sam's strangest marketing decisions.


The FTX condoms that read Never breaks...even during large liquidations" - ironically describing the exact conditions that would indeed break FTX.  

In Closing...

This is all still sinking in, but when I think about Sam being in prison right now, it feels justified. He deserves some punishment.  Where I'm torn is if in 15 or 20 years from now, I'll feel like it's justified that he's still there. 

From a legal standpoint, the end result of a crime usually makes a massive difference.  For example, imagine someone driving the wrong way on a freeway because they're extremely drunk, and they manage not to kill anyone only because the other drivers swerved to avoid them. Then imagine the same scenario but in this one, the drunk driver kills an innocent driver in a head on collision.  Even though we're fully aware that both literally made the exact same poor choices - one could end up in prison for a few months, and the other for decades.

Ultimately, the choices Sam made led him here, making it hard to feel sorry for him now. So while I won't be campaigning to #FreeSam, I also wouldn't be angry to hear Sam's legal team was able to have the sentence re-evaluated, and reduced by a few years.

If you were the judge overseeing the case - what, if anything, would you change given what you know today? We want to know - share your answer with us on X @TheCryptoPress

---------------
Author: Ross Davis
Silicon Valley Newsroom
GCP Breaking Crypto News

Subscribe to GCP in a reader

Mar 20, 2023 06:55

FTX US and Alameda Research File Complaint Against FTX Digital Markets


FTX US and Alameda Research have filed a complaint against FTX Digital Markets, alleging that the Bahamas-based company was a "fraudulent enterprise" used to conceal the issue of the firm's ownership. The complaint claims that the claims made by FTX Digital Markets will harm FTX.com customers and other creditors of the FTX Debtors as the company continues with bankruptcy proceedings in the United States. (Read More)

Feb 07, 2023 07:50

FTX Users’ Debt Burn Raises Questions – Who Owns 90% of FUD Supply?

The Huobi exchange said that the FUD token issuer would burn 90%. But how much FUD does DebtDAO actually own?

Continue reading FTX Users’ Debt Burn Raises Questions – Who Owns 90% of FUD Supply? at DailyCoin.

Jan 29, 2023 10:50

FTX Former CEO Attempts To Influence Witness In Fraud Case: Report

Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX, has been accused by federal prosecutors of trying to contact a potential witness in his ongoing criminal case, according to the January 27th report. The U.S. attorney’s office for the Southern District of New York revealed in a court document that SBF communicated with the general counsel […]

US prosecutors seek to ban SBF from Signal after alleged witness contact

Author: Cointelegraph By Ciaran Lyons
United States
Jan 28, 2023 08:20

US prosecutors seek to ban SBF from Signal after alleged witness contact

It’s alleged that the former FTX CEO attempted to arrange a “constructive relationship” with the current General Counsel of FTX US, Ryne Miller.

Jan 20, 2023 07:10

FTX Second Life: New CEO’s Plans to Revive and Repay

FTX, a crypto exchange that recently went bankrupt, may see a resurgence under the leadership of its new CEO, John J. Ray III. In a recent interview with the Wall Street Journal, Ray stated that he is looking for ways to revive the company while also working to reimburse customers and creditors for their losses […]

Jan 16, 2023 11:55

Former FTX US President Denies Involvement in FTX Collapse

Brett Harrison, the former president of FTX U.S. has denied involvement in the FTX-Alameda debacle. 1/49 Many have asked questions about my time at FTX US and why I left when I did. As I indicated earlier this week, I’m happy to begin sharing my experiences and perspective publicly. — Brett Harrison (@BrettHarrison88) January 14, […]

The post Former FTX US President Denies Involvement in FTX Collapse first appeared on The Crypto Basic.

Former FTX US President lashes out at 'insecure' SBF in 49-part Twitter thread rant

Author: Cointelegraph By Brayden Lindrea
United States
Jan 15, 2023 08:20

Former FTX US President lashes out at 'insecure' SBF in 49-part Twitter thread rant

Harrison said Bankman-Fried threatened to fire him on the spot and would destroy his professional reputation if he continued to confront the former FTX CEO.

Bankman-Fried on the hook in Texas, called to appear at Feb. hearing

Author: Cointelegraph By Felix Ng
United States
Nov 30, 2022 08:20

Bankman-Fried on the hook in Texas, called to appear at Feb. hearing

The Texas Securities Board has asked the judge to consider leveling a cease-and-desist order, administrative fines, and forced refunds against SBF and FTX US.

Nov 29, 2022 12:25

Crypto Lender BlockFi Files for Bankrupty Protection in the US

<p class="MsoNormal text-align-justify">BlockFi, a cryptocurrency lending firm founded in 2017, on Monday filed for Chapter 11 bankruptcy protection in New Jersey, United States. </p><p class="MsoNormal">The proceeding also includes eight of the firm’s affiliates, BlockFi said in a statement issued on Monday, adding that its Bermuda subsidiary has also filed a petition before the Supreme Court of Bermuda for the appointment of joint provisional liquidators.</p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">Today, BlockFi filed voluntary cases under Chapter 11 of the U.S. Bankruptcy Code.<a href="https://t.co/adaAx6me4r">https://t.co/adaAx6me4r</a></p>— BlockFi (@BlockFi) <a href="https://twitter.com/BlockFi/status/1597253469374910466?ref_src=twsrc%5Etfw">November 28, 2022</a></blockquote><p class="MsoNormal">A Chapter 11 bankruptcy proceeding under the United States Bankruptcy Code enables a troubled business to reorganize its affairs, debts, and assets. Under its filing, the crypto lender noted that it wants to stabilize its business and undergo “a comprehensive restructuring transaction” to give maximum value to its clients and stakeholders.</p><p class="MsoNormal">The bankruptcy filing comes weeks after reports emerged that the crypto lender was <a href="https://www.financemagnates.com/cryptocurrency/blockfi-on-the-brink-of-bankruptcy-another-victim-of-ftx-collapse/">preparing to go bankrupt</a> following the lending firm's <a href="https://www.financemagnates.com/cryptocurrency/blockfi-halts-withdrawals-citing-lack-of-clarity-on-ftx-situation/" target="_blank">suspension of withdrawals</a> on its platform. BlockFi cited a “lack of clarity” on the situation with crypto exchange FTX which was <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank">undergoing a liquidity crisis</a> at the time. FTX later <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/">filed for bankruptcy</a> protection in the United States on the same day.</p><p class="MsoNormal">“As part of its restructuring efforts, the Company [BlockFi] will focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities (‘FTX’). Due to the recent collapse of FTX and its ensuing bankruptcy process, which remains ongoing, the Company expects that recoveries from FTX will be delayed,” BlockFi explained in the statement.</p><p class="MsoNormal">Top Creditors</p><p class="MsoNormal">In its <a href="https://pacer-documents.s3.amazonaws.com/109/1094078/118164199368.pdf">court petition</a>, BlockFi checked the range that says its assets and liabilities stand between $1 and $10 billion. The crypto lender also indicated that it has over 100,000 creditors. </p><p class="MsoNormal">West Realm Shires Inc., the corporate entity behind FTX.US, is one of its largest creditors to which it owes $275 million in unsecured claims. The creditor is one of the “approximately 130 additional affiliated companies” included in FTX’s ongoing bankruptcy proceedings in the US.</p><p class="MsoNormal">However, the biggest of the 50 largest outsider creditors is Ankura Trust Company, a trust company that specializes in stressed and distressed situations, and to which BlockFi owes $729 million in unsecured claims. The company also owes the United States Securities and Exchange Commission to the tune of $30 million. The remaining 47 creditors were not named in the petition.</p><p class="MsoNormal">Furthermore, BlockFi in the Monday statement noted that it has US$256.9 million in cash on hand. The firm expects that this will “provide sufficient liquidity to support certain operations during the restructuring process.”</p><p class="MsoNormal">Meanwhile, FTX's collapse has been widely attributed to its <a href="https://www.financemagnates.com/cryptocurrency/binance-pulls-out-of-ftx-acquisition-crypto-chaos-ensues/?utm_source=FMnewsletter&utm_medium=email&utm_campaign=10.11.22%2F">misuse of customers’ funds</a> which resulted in <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/">a liquidity crisis</a> that pushed it into bankruptcy.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

Texas to probe FTX endorsements by Tom Brady, Stephen Curry and other celebs

Author: Cointelegraph By Stephen Katte
United States
Nov 22, 2022 08:20

Texas to probe FTX endorsements by Tom Brady, Stephen Curry and other celebs

The Texas State Securities Board is scrutinizing payments received by celebrities to endorse FTX US, as part of a wider probe into FTX's collapse.

Nov 18, 2022 05:05

FTX Fallout Reveals a Shambolic Operation

<p>The fallout from the FTX saga has been relentless, and what’s especially remarkable is how many different rabbit holes the story has opened up, as it extends in multiple directions.</p><p> At the center of it all sits the disgraced former CEO, Sam Bankman-Fried. The picture of him that emerges, as the plot unfolds both retrospectively and in real-time, depicts a confusing and erratic character, who, through his actions and public statements, is raising the hackles of observers on every side.</p><p>Outraged Customers</p><p>The people perhaps most outraged with SBF (as Bankman-Fried is often known) are the regular customers who utilized his exchange and have, likely irretrievably, lost their money. There are now indications that customer funds were essentially shifted into what amounts to a central slush fund, from where they could be easily misused.</p><p>And, then there is the loan of $1 billion given from FTX-connected, SBF-founded <a href="https://www.financemagnates.com/tag/alameda-research/" target="_blank">Alameda Research</a> to SBF himself. On top of that, there was a loan of $2.3 billion given to Paper Bird, a company owned by SBF.</p><p> One can’t help but make speculative connections here, recalling that, according to <a href="https://www.financemagnates.com/tag/elon-musk/" target="_blank">Elon Musk</a> himself, SBF offered $3 billion to be part of Musk’s Twitter acquisition. The new Twitter owner intuited that something was not right and declined, leaving us to wonder how it was that SBF had these kinds of funds to hand.</p><p>Avoidance of Responsibility</p><p>Getting back to those seriously disgruntled customers, a further aggravating factor may be SBF’s conspicuous refusal to take responsibility for his actions and the resultant <a href="https://www.financemagnates.com/tag/ftx/" target="_blank">FTX</a> train wreck.</p><p> SBF has been communicating publicly through his Twitter account, but his messages are out-of-touch and peculiar, seeming to imply, at times, that what occurred was partly just an unfortunate accident, rather than the consequence of his own behavior.</p><p> Relatedly, some interesting digging that was circulated on Twitter showed an <a href="https://www.bostonreview.net/forum/barbara-fried-beyond-blame-moral-responsibility-philosophy-law/">essay</a> from nine years ago by SBF’s mother, Barbara Fried, who is a lawyer and a Stanford professor, arguing that free will is not real, and criminals should not be blamed for their actions.</p><p> She presents a coldly mechanical argument that runs directly counter to social norms, and it seems particularly jarring when considered alongside SBF’s own lack of personal accountability for his actions.</p><p>Revealing the Game</p><p>Then, there are SBF’s comments to a reporter at <a href="https://www.vox.com/future-perfect/23462333/sam-bankman-fried-ftx-cryptocurrency-effective-altruism-crypto-bahamas-philanthropy">Vox</a>, Kelsey Piper, who had been profiling SBF. In a private exchange, made public by the reporter, SBF makes it very clear that he has been simply running through the motions in public, saying whatever he believed would gain him the most social capital.</p><p>Here is the most revealing quote:</p><p>“I had to be [good at talking about ethics], it’s what reputations are made of, to some extent. I feel bad for those who get f***ed by it, by this dumb game we woke Westerners play where we say all the right shibboleths and so everyone likes us.”</p><p> It’s a statement that has managed to simultaneously trigger a reaction from both sides of the political/cultural aisle.</p><p>Many of SBF’s most indignant critics from the libertarian-leaning world of crypto, especially those who are focused on Bitcoin, actually express similar opinions to SBF on what he frames as ‘this dumb game we woke Westerners play’.</p><p> It’s not uncommon to come across the observation that political demands have become overbearing and censorious, and there is unease at what’s perceived as ideological encroachment into the business sphere.</p><p> Nowhere is this more apparent than around Elon Musk’s takeover of Twitter, as it appears that the new owner is not in the mood for either politics in the office or overzealous content moderation.</p><p> At the same time, those who support the kind of thinking that SBF makes a mockery of (which would likely include the progressive-left target readership of Vox), may be appalled that SBF has first manipulated them (appearing to be, in a sense, on their side), and now openly trivialized their beliefs.</p><p>An ESG-Stamped Shambles</p><p>Through ongoing revelations about their business practices, FTX and SBF have glaringly discredited ESG policies, which were already attracting some high-profile criticism.</p><p>In the FTX <a href="https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf">bankruptcy filing</a>, liquidator John Ray, who supervised the liquidation of Enron and has over 40 years of related experience, had the following to say about FTX:</p><p> “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”</p><p>The rest of the document then goes on to reveal a haphazard shambles of an organization. And yet, FTX received the ESG stamp of approval, including, remarkably, for its leadership and governance.</p><p> How is it possible that ESG scores can have any genuine bearing or relevance, if no-one responsible for assigning them could pick up that there were critical faults at FTX and, specifically, with its management?</p><p> Notably, Elon Musk and Shopify CEO, Tobias Lutke have both been critical of ESG, the latter remarking tactfully that, “ESG the idea is really good,” but that, “the current implementation is broken, cynical, and counter productive.”</p><p> Meanwhile, Musk was characteristically forthright, stating, after Tesla was removed from the S&P ESG Index, “ESG is a scam. It has been weaponized by phony social justice warriors.”</p><p> For what it’s worth, SBF, who benefitted from the ESG system, at least partly agrees with Musk and Lutke. In that same exchange with Piper, the Vox reporter, SBF claims, as part of a disparaging condemnation of financial regulators, that, “ESG has been perverted beyond recognition.”</p><p>Aftershocks Continue</p><p>Picking apart the FTX web, one thing we can be confident of is that SBF has angered (or at least irritated) anyone who genuinely believes in cryptocurrencies and decentralization.</p><p> It would be beneficial if a clear distinction were made between FTX, a corrupt centralized platform, and the decentralized blockchains and applications that most crypto users advocate for.</p><p>Perhaps that difference will become apparent with more details about FTX becoming public, as it looks, for now, like the aftershocks are far from over.</p> This article was written by Sam White at www.financemagnates.com.

Nov 12, 2022 05:05

FTX’s Bankruptcy: AZA Finance Denounces Listing of Its Entities in Filing

<p class="MsoNormal text-align-justify">AZA Finance, a global financial services firm, has denounced FTX’s listing of 23 of its subsidiaries in its bankruptcy protection filing made public on Friday. The foreign exchange fintech noted that “our entities are not part of the FTX bankruptcy.”</p><p class="MsoNormal">Beleaguered Bahamas-based crypto exchange FTX on Friday disclosed that the bankruptcy proceeding includes FTX.com, FTX.US, Alameda Research and and “approximately 130 additional affiliated companies.”</p><p class="MsoNormal">However, AZA Finance in <a href="https://azafinance.com/aza-finance-issues-correction-to-erroneous-inclusion-in-ftx-chapter-11-bankruptcy-filing/" target="_blank" rel="nofollow">a statement</a> released late Friday noted that “in its disorganized haste, FTX erroneously listed our entities in their bankruptcy filing.”</p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">Notice: AZA Finance & our entities are not affected by the <a href="https://twitter.com/FTX_Official?ref_src=twsrc%5Etfw">@FTX_Official</a> bankruptcy, nor by the events of this week. FTX are not shareholders in<a href="https://twitter.com/aza_africa?ref_src=twsrc%5Etfw">@aza_africa</a>, E4F or other entities of ours - the circulating list/org chart is incorrect. We remain stable, open, & running normally. <a href="https://t.co/uvHtXn09pu">https://t.co/uvHtXn09pu</a></p>— AZA Finance (@aza_africa) <a href="https://twitter.com/aza_africa/status/1591116398675521536?ref_src=twsrc%5Etfw">November 11, 2022</a></blockquote><p class="MsoNormal">“I was shocked and disappointed to see that FTX named BTC Africa S.A. and other AZA Finance entities in its Chapter 11 bankruptcy filing today. To be clear: AZA Finance entities are not affected by the FTX bankruptcy, and we are taking steps to correct the erroneous court filings,’ explained Elizabeth Rossiello, CEO and Founder of AZA Finance.</p><blockquote class="twitter-tweet"><p dir="ltr" lang="en"><a href="https://twitter.com/FTX_Official?ref_src=twsrc%5Etfw">@FTX_Official</a> did NOT acquire <a href="https://twitter.com/aza_africa?ref_src=twsrc%5Etfw">@aza_africa</a> or E4F - this list is incorrect. We were partners ONLY and there was no shareholding. We are licensed in multiple jurisdictions and our shareholding is public. Clearly FTX org chart is as messy as the rest of it</p>— Elizabeth Rossiello (@e_rossiello) <a href="https://twitter.com/e_rossiello/status/1591105632400478208?ref_src=twsrc%5Etfw">November 11, 2022</a></blockquote><p class="MsoNormal">However, AZA Finance pointed out that FTX Africa is just one of its customers as the latter uses its payment infrastructure to pay out to a small number of customers in Africa.</p><p class="MsoNormal">The fintech company further explained that it entered into a commercial partnership with FTX Africa to help expand web3 in Africa by building a "regulated, safe and low-cost payment rails" for FTX.</p><p class="MsoNormal">"However, neither FTX nor any of its associated entities own or control AZA Finance or our entities, including BTC Africa SA. Our entities are not part of the FTX bankruptcy," AZA Finance noted.</p><p class="MsoNormal">The Entities</p><p class="MsoNormal">According to AZA Finance, its entities listed in the bankruptcy filing and that are not part of FTX include B Transfer Services Limited UK, Exchange4Free Limited UK, BTC Africa SA, BT Payment Services Ghana Limited, BT Payment Services Nigeria Limited, BT Payment Services Uganda Limited, and BT Payment Services South Africa.</p><p class="MsoNormal">Others are TransferZero, B For Transfer Egypt, B Transfer Services Limited UAE, BitPesa Kenya Limited, BitPesa Senegal Limited, BitPesa South Africa, BitPesa Tanzania Limited, BitPesa Uganda Limited, BitPesa RDC SARL, and BTPesa Nigeria Limited. </p><p class="MsoNormal">Additionally, BTSL Limited Tanzania, Exchange4Free Seychelles, Exchange4Free Australia Br., Exchange4Free Swiss Br., Exchange4Free South Africa Br., and FinFax Company Limited, were also erroneously included, AZA Finance said.</p><p class="MsoNormal">FTX was forced to apply for bankruptcy protection following <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank">a liquidity crisis</a> fueled by rival Binance’s decision to withdraw its $530 million FTX Tokens (FTT) from FTX, also the revelation that FTT constituted <a href="https://www.financemagnates.com/cryptocurrency/ftx-and-binance-an-epic-drama/">the largest single entry</a> on FTX corporate sibling Alameda Research's balance sheet. </p><p class="MsoNormal">The struggling crypto exchange <a href="https://www.financemagnates.com/cryptocurrency/ftx-opts-for-capital-raise-as-alameda-research-winds-down-on-trading/">made efforts to raise funds</a> after Binance <a href="https://www.financemagnates.com/cryptocurrency/binance-pulls-out-of-ftx-acquisition-crypto-chaos-ensues/?utm_source=FMnewsletter&utm_medium=email&utm_campaign=10.11.22%2F">pulled out </a>of a proposed deal to fully acquire its non-US operations before opting for bankruptcy protection in the United States.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

Nov 12, 2022 08:45

Breaking: FTX Hacked: $1bn Drained from FTX and FTX US Accounts So Far

<p>The FTX drama continues.</p><p>Just hours after <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/" target="_blank">FTX crypto exchange filed for Chapter 11 bankruptcy and Sam Bankman-Fried resigned as CEO</a>, over $600 million disappeared from FTX wallets within a matter of hours with no explanation as to why.</p><p>Amid the Friday night confusion, there was speculation that the draining of wallets into a single account was the action of a liquidator or even a regulator. However, shortly after, it was confirmed on the FTX official Telegram channel (now pinned by FTX General Counsel Ryne Miller) that the hundreds of millions of dollars being siphoned off was indeed the action of a hack, as the FTX.com website came offline.</p><blockquote class="twitter-tweet"> <p lang="en" dir="ltr">FTX just pinned this message in their main telegram chat <a href="https://t.co/8uCl4wJtvT">pic.twitter.com/8uCl4wJtvT</a></p>— foobar (@0xfoobar) <a href="https://twitter.com/0xfoobar/status/1591294791253258240?ref_src=twsrc%5Etfw">November 12, 2022</a> </blockquote><p>Both FTX and FTX US appear to be affected by what is speculated to be the result of a Trojan, with users of both exchanges reporting balances of $0 in their accounts. Reports are emerging of SMS messages and emails being sent by FTX to customers to log into the app and website, which are infected with a trojan and enabled the hack. </p><p>Hack or Rug Pull?</p><p>With the attack and account draining appearing to be ongoing at the time of writing, speculation is rife on what is happening and where the money is going. Accusations of an 'inside job' quickly gathered steam on social media.</p><blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Some of the wallets are labeled "fucksbf" and "fuckftxandsbf.eth" -- this could be a reverse optics to appear as if it is a hack. Anything is possible. <a href="https://t.co/b9Qa9Cw3dH">pic.twitter.com/b9Qa9Cw3dH</a></p>— Autism Capital ?? (@AutismCapital) <a href="https://twitter.com/AutismCapital/status/1591273268677578753?ref_src=twsrc%5Etfw">November 12, 2022</a> </blockquote><p>It does not take Sherlock Holmes to link the draining of accounts to the recently resigned CEO, <a href="https://www.financemagnates.com/cryptocurrency/ftxs-sam-bankman-fried-i-fcked-up/" target="_blank">Sam Bankman-Fried who took to Twitter on Thursday to explain and apologize for his actions</a>. Twitter sleuths were quick to point out why they thought it "hard to believe this isn't a coordinated inside job."</p><blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Interesting how both FTX and FTX US have been hacked, considering they're completely different entities with completely different security protocols Hard to believe this isn't a coordinated inside job, most FTX admins don't have access to FTX US and vice versa</p>— Psycho (@AltcoinPsycho) <a href="https://twitter.com/AltcoinPsycho/status/1591312517049257984?ref_src=twsrc%5Etfw">November 12, 2022</a> </blockquote><p>With the attack understood to be ongoing and details emerging all the time, approximately $1 billion is believed to be drained so far. All FTX and FTX US users are being advised NOT to visit the app or website and delete the app altogether.</p> This article was written by Finance Magnates Staff at www.financemagnates.com.

Nov 11, 2022 05:05

Troubled FTX Files for Bankruptcy as CEO Sam Bankman-Fried Resigns

<p class="MsoNormal text-align-justify">Beleaguered Bahamian cryptocurrency exchange, FTX, has filed for <a href="https://www.financemagnates.com/terms/b/bankruptcy/" target="_blank" id="41b3ef0d-d805-441d-8443-121890264e94_1" class="terms__main-term">bankruptcy</a> protection in the United States, and Sam Bankman-Fried, its Founder and CEO, has resigned.</p><p class="MsoNormal">The crypto exchange disclosed these on Friday, announcing on Twitter that the FTX Group has kick-started voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. </p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">Press Release <a href="https://t.co/rgxq3QSBqm">pic.twitter.com/rgxq3QSBqm</a></p>— FTX (@FTX_Official) <a href="https://twitter.com/FTX_Official/status/1591071832823959552?ref_src=twsrc%5Etfw">November 11, 2022</a></blockquote><p class="MsoNormal">The Group involved in the bankruptcy protection proceedings includes FTX.com, the exchange's United States subsidiary FTX.US, Hong Kong-based subsidiary Alameda Research Limited, and “approximately 130 additional affiliated companies”. The goal of the proceeding is to “review and monetize assets for the benefit of all global stakeholders,” FTX said.</p><p class="MsoNormal text-align-justify">A New Chief</p><p class="MsoNormal text-align-justify">Also, the Bahamian exchange, whose collapse was precipitated by its <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank">recent liquidity crisis</a>, has appointed John J. Ray III to take over from Bankman-Fried as the CEO. However, FTX said Bankman-Fried will remain in the organization to provide assistance for a smooth transition.</p><p class="MsoNormal">Speaking on the bankruptcy proceedings, Ray noted that the process is important because “the FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”</p><p class="MsoNormal">“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to asset its situation and develop a process to maximize recoveries for stakeholders,” Ray explained, adding that the exchange would conduct the process “with diligence, thoroughness and transparency.”</p><p class="MsoNormal">However, in the press statement published on Twitter, FTX pointed out that some of its subsidiaries were excluded from the proceedings. These are LedgerX LLC, FTX Digital markets Limited, FTX Australia Pty Limited and FTX Express Pay Limited.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

Oct 20, 2022 05:30

FTX US Deal with Voyager Offers 72% Funds Recovery

<p class="MsoNormal">According to court documents from this week, clients of the bankrupt crypto lender, <a href="https://www.financemagnates.com/tag/voyager/">Voyager Digital</a> might have a chance to recover some of their funds. Under a preliminary deal with FTX US, a <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" target="_blank" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa_1" class="terms__main-term">cryptocurrency exchange</a> regulated in the United States, customers may be able to obtain over 70% of their accounts' initial value. </p><p class="MsoNormal">However, the preliminary deal would not be finalized until Voyager's creditors express their approval, Michal Wiles, the United States bankruptcy judge, <a href="https://cases.stretto.com/public/x193/11753/PLEADINGS/1175310192280000000017.pdf">said</a> during a court hearing. "There's no part of this agreement that survives" if the tentative sale falls.</p><p class="MsoNormal">According to current arrangements, FTX US would pay out all priority claims in full, allowing the rest of the customers to recover more than 70% of their holdings. The value of accounts maintained by the bankrupt crypto lender has been frozen since July 1.</p><p class="MsoNormal">Almost Four Months of Voyager's Bankruptcy Case</p><p class="MsoNormal">The problems of Voyager began four months ago when, due to liquidity issues, it was forced to file for Chapter 11 bankruptcy on July 4. The <a href="https://www.financemagnates.com/terms/b/bankruptcy/" target="_blank" id="41b3ef0d-d805-441d-8443-121890264e94_4" class="terms__secondary-term">bankruptcy</a> followed the earlier default of Three Arrows capital, a cryptocurrency hedge fund.</p><p class="MsoNormal">Although <a href="https://www.financemagnates.com/tag/ftx/">FTX US</a> won a bid to acquire Voyager Digital's crypto assets, <a href="https://www.financemagnates.com/cryptocurrency/ftx-us-wins-bid-to-acquire-voyager-digitals-crypto-assets/">the deal valued at $1.4 billion is still in the preliminary phase</a>. Thanks to a clause named "fiduciary out," Voyager still has a chance to cancel current agreements if any company other than FTX would present an offering with a better outcome for current creditors. It is often practiced in such cases and allows firms to look for higher bidders before the finalization of the sale. </p><p class="MsoNormal">However, if the deal is finalized as it currently stands, then Voyager customers will be able to transfer to the FTX US platform. New York-Based bankrupt crypto lender had over 3.5 million users (according to March 2021 data) and 1.19 million funded accounts.</p> This article was written by Damian Chmiel at www.financemagnates.com.

Sam Bankman-Fried sheds light on how FTX would approach a Celsius bid

Author: Cointelegraph By Brian Quarmby
United States
Oct 03, 2022 08:20

Sam Bankman-Fried sheds light on how FTX would approach a Celsius bid

The FTX founder said the company paid the “fair market price” for Voyager’s assets and would look to do the same in a deal for Celsius' assets.

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