FTX creditors only getting '10-25% of their crypto back' creditor
Following the collapse of the FTX exchange, the FTT token collapsed by more than 80% and wiped away over $2 billion in customer value.
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Following the collapse of the FTX exchange, the FTT token collapsed by more than 80% and wiped away over $2 billion in customer value.
Following the collapse of the FTX exchange, the FTT token collapsed by more than 80% and wiped away over $2 billion in customer value.
Combs and SBF live in the same cell with Mexico's former secretary of public security and the former president of Honduras.
Ellison's 'extraordinary cooperation' earns praise from judge but doesnt spare her from jail time in the FTX case.
The regulator said that while stablecoin-denominated creditor repayments may not be illegal, it reserves its rights to challenge transactions involving crypto assets.
Former FTX CEO, Sam Bankman-Fried, alleges that he was mistried during the last court proceeding, requesting a new hearing in…
The post Sam Bankman-Fried Requests New Trial in New Appeal Filing first appeared on The Crypto Basic.
Following the collapse of crypto exchange FTX in 2022, the former CEO faced a jury trial and was convicted of seven felony counts and sentenced to 25 years in prison.
At a Sept. 12 hearing, Judge Lewis Kaplan moved up Ryan Salames reporting date by two days and considered vacating his guilty plea.
Caroline Ellison's ex-boyfriend, Sam Bankman-Fried, was sentenced to 25 behind bars for his role in the collapse of the FTX exchange.
The elusive former CEO of Alameda Research will return to court on Sept. 24 for sentencing after pleading guilty to fraud and money laundering in 2022.
According to the prominent voice for effective altruism, Sam Bankman-Frieds version of the philosophy was only one among many.
Sam Bankman-Fried faces 25 years behind bars, while the fate of four others indicted in the case has largely yet to be determined.
Two FTX's former executives who testified against theexchange's founder, Sam Bankman-Fried, have been scheduled for sentencing,Reuters reported. Nishad Singh and Gary Wang, once high-ranking figures withinthe now-bankrupt cryptocurrency exchange, will soon know their fates.
FTX's Executives Await Sentencing
Singh, scheduled for sentencing on October 30,and Wang, on November 20, both pleaded guilty to fraud charges inManhattan federal court. Their testimonies were important in the case againstBankman-Fried, who was sentenced to 25 years in prison fororchestrating an $8 billion fraud scheme.
Prosecutors labeled it one of the largest financialfrauds in US history. The sentences for Singh and Wang could be influenced bytheir cooperation with the authorities. US District Judge Lewis Kaplan willconsider their assistance during the proceedings. This could reportedly resultin more lenient punishments, acknowledging their roles in unveiling the massivefraud that brought FTX down.
Bankman-Fried's conviction last year sent shockwavesthrough the cryptocurrency world. His actions not only led to the collapse ofFTX but also shook investor confidence in the broader crypto market.
The testimonies of Singh and Wang were crucial insecuring the conviction, highlighting the inner workings and deceptivepractices within the crypto exchange. The outcomes will not only impact thelives of Singh and Wang but also set a precedent for how cooperation in suchhigh-profile cases might be rewarded or penalized.
Sam Bankman-Fried
In March, Bankman-Fried was sentenced to 25 years inprison after being convicted of multiple counts of wire fraud and conspiracythat led to the collapse of FTX and caused billions of dollars of losses toinvestors. Prosecutors earlier sought a 40 to 50 yearsprison sentence for the disgraced crypto entrepreneur. Despite the verdict,Bankman-Fried's defense team vowed to appeal both the conviction and thesentence.
Earlier, the judge also ordered Bankman-Fried to be remanded toa low- or medium-security prison in Northern California. This facility isreportedly near his parents' house, and the judge cited concerns for hissecurity at a maximum-security prison due to his autism.
However, federal officials recently initiated the process of transferring Bankman-Fried to a new prison despite his preference to remain inNew York to assist in preparing his appeal.
This article was written by Jared Kirui at www.financemagnates.com.
According to emails seen by the WSJ, Sam Bankman-Frieds family allegedly funneled millions from FTX to political causes, raising significant legal questions.
Alameda Research invested over $1 billion into Genesis Digital Assets over several funding rounds.
Former FTX CEO Sam Bankman-Fried reportedly donated roughly $40 million directly to political candidates and PACs in 2022 before the collapse of his crypto exchange.
The former FTX CEO spent roughly a week at the Federal Transfer Center in Oklahoma City, with many speculating authorities planned to send him to a California prison.
Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies. Ronaldo’s journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this [...]
The post FTX Seeks Customer Consensus: Multi-Billion Dollar Compensation Plan Goes To Vote appeared first on Crypto Breaking News.
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.
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
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.
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
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