Tag: Sam Bankman-Fried

FTX founder Sam Bankman-Fried Agrees to Gag Order With Bail Status in Jeopardy
25Jul By adminNo Comments
Technology

FTX founder Sam Bankman-Fried Agrees to Gag Order With Bail Status in Jeopardy

[ad_1]  FTX founder Sam Bankman-Fried has agreed to a gag order largely preventing him from publicly discussing his case after prosecutors accused him of trying to discredit their star witness, Caroline Ellison.The order still needs to be approved by US District Judge Lewis A. Kaplan, who has summoned the former chief executive officer to appear in court Wednesday. The judge will deal with the “adequacy and continuation” of Bankman-Fried's bail, suggesting his current house arrest could be in jeopardy. According to the proposed order, filed in federal court Manhattan Monday, Bankman-Fried and other parties would be banned from discussing anything with the press that could interfere with a fair trial. That would include statements about the credibility of witnesses, information that isn'...
Read More
SEC lawsuits against cryptocurrency companies raise questions about industry’s future
11Jun By adminNo Comments
Technology

SEC lawsuits against cryptocurrency companies raise questions about industry’s future

[ad_1] First came the crypto winter, then the alleged fraud wrought by FTX founder Sam Bankman-Fried, and now the lawsuits.The U.S. Securities and Exchange Commission filed lawsuits last week against the world's biggest cryptocurrency exchanges, Binance and Coinbase, deepening tensions between the government and a volatile industry that has been marred by scandals and market meltdowns. Binance and Coinbase are both alleged to have violated the law by operating as securities exchanges without registering their businesses with the SEC. Binance faces additional charges, along with its CEO, of diverting customer funds to a separate business, among other accusations. Most recently, the SEC asked a federal judge to freeze the assets of Binance's U.S. platform. The lawsuits are the latest in a...
Read More
Alameda’s Caroline Ellison Says She, Sam Bankman-Fried Agreed to Mislead FTX Lenders
24Dec By adminNo Comments
Technology

Alameda’s Caroline Ellison Says She, Sam Bankman-Fried Agreed to Mislead FTX Lenders

[ad_1] Ellison gave her first public account of her actions in a Dec. 19 plea hearing in Manhattan federal court. “I knew that it was wrong,” she said, according to a transcript of the hearing. Former Alameda Research CEO Caroline Ellison said she and FTX co-founder Sam Bankman-Fried knowingly misled lenders about how much the trading firm was borrowing from the cryptocurrency exchange. Ellison gave her first public account of her actions in a Dec. 19 plea hearing in Manhattan federal court. “I knew that it was wrong,” she said, according to a transcript of the hearing. Bankman-Fried, 30, is charged with orchestrating a yearslong fraud in which he used billions of dollars of FTX customer funds for personal expenses and high-risk bets through Alameda, the cryptocurrency exchange's...
Read More
Binance, Alone at the Top After FTX, Stirs ‘Too Big to Fail’ Crypto Worry
18Dec By adminNo Comments
Technology

Binance, Alone at the Top After FTX, Stirs ‘Too Big to Fail’ Crypto Worry

[ad_1] The death spiral of Sam Bankman-Fried’s empire bolsters the dominance of Changpeng Zhao’s exchange and amps up potential dangers for the entire sector. Now that Sam Bankman-Fried's fall from grace is complete, uneasiness is growing around the dominance that his rival Changpeng Zhao's Binance holds in the cryptocurrency market. The worries surfaced again on Friday as the accounting firm Mazars Group halted work for Binance and other crypto firms on reports that are meant to demonstrate that the companies hold the necessary reserves needed to cover any potential surge of customer withdrawals. Zhao, who goes by his initials CZ, has insisted repeatedly that Binance doesn't misuse customer funds like FTX allegedly did and that his exchange can process whatever amount of withdra...
Read More
The FTX Crypto Victim Card Can Be Hard to Play
16Dec By adminNo Comments
Technology

The FTX Crypto Victim Card Can Be Hard to Play

[ad_1] Blaming Sam Bankman-Fried is convenient cover for some firms that should have known better. The crypto industry has suffered many booms and busts in its brief lifespan, but nothing like this. Sam Bankman-Fried, currently sitting in a Bahamian jail, has been accused by the US securities regulator of orchestrating a years-long fraud that diverted billions in customer funds from opaque and offshore exchange FTX to a now-bankrupt trading empire. The outrage among FTX's roughly 1 million creditors is understandable, as is the skittishness of investors yanking money from other crypto platforms like Binance. Bankman-Fried has tried to present himself as a naive 30-year-old who got out over his skis, but each day brings new reports of elaborate internal tools used to support the pro...
Read More
Binance, Tether to Solana, After FTX Fall, These Crypto Entities Are Grabbing the Spotlight
14Dec By adminNo Comments
Technology

Binance, Tether to Solana, After FTX Fall, These Crypto Entities Are Grabbing the Spotlight

[ad_1] Sam Bankman-Fried’s arrest in the Bahamas pending a possible extradition to the US opens a fresh chapter in efforts to untangle whether his crypto empire was built using fraudulent methods. Sam Bankman-Fried's arrest in the Bahamas pending a possible extradition to the US opens a fresh chapter in efforts to untangle whether his crypto empire was built using fraudulent methods.Regardless of the outcome, the demise of his digital-asset exchange FTX continues to shake the wider crypto market's foundations. Skittish investors are pulling money out of rival exchanges, fearful of having their assets stuck should any of those venues collapse. At least one major crypto firm has filed for bankruptcy in the wake of FTX's unraveling, while two others were forced to suspend some withdrawal...
Read More
Former FTX CEO Bankman-Fried arrested in Bahamas after U.S. files charges
13Dec By adminNo Comments
Technology

Former FTX CEO Bankman-Fried arrested in Bahamas after U.S. files charges

[ad_1] FTX founder Sam Bankman-Fried was arrested in the Bahamas at the behest of U.S. prosecutors on Monday. FTX founder Sam Bankman-Fried was arrested in the Bahamas at the behest of U.S. prosecutors on Monday, the day before he was due to testify before Congress about the abrupt failure last month of one of the world's largest cryptocurrency exchanges.The arrest marks a stunning fall from grace for the 30-year-old entrepreneur widely known by his initials SBF, who rode a boom in bitcoin and other digital assets to become a billionaire many times over until FTX's rapid demise. The exchange, launched in 2019 and based in the Bahamas, filed for bankruptcy Nov. 11 after it struggled to raise money to stave off collapse as traders rushed to withdraw $6 billion from the platform in just ...
Read More
An Obscure Bank Found Its Key to Success. Then FTX Collapsed
10Dec By adminNo Comments
Technology

An Obscure Bank Found Its Key to Success. Then FTX Collapsed

[ad_1] Over the course of a decade, the La Jolla, California-based company transformed itself from a bank catering to small businesses into a publicly traded firm. Silvergate Capital Corp. was dealing with the same problem many small US banks face: How do you differentiate yourself when larger competitors do everything you do, only better?The solution it found was to focus on a sector other banks didn't want to touch: cryptocurrency. Over the course of a decade, the La Jolla, California-based company transformed itself from a bank catering to small businesses into a publicly traded firm known for providing banking services to major crypto clients such as Coinbase Global Inc. and Gemini Trust Co. — as well as Sam Bankman-Fried's FTX and Alameda Research. The arrangement was going well,...
Read More
Mystery of Terra Collapse Deepens With Possible FTX Role Raised
9Dec By adminNo Comments
Technology

Mystery of Terra Collapse Deepens With Possible FTX Role Raised

[ad_1] US prosecutors are said to be investigating Sam Bankman-Fried, the founder of collapsed crypto exchange FTX and its sister trading platform Alameda Research. The latest twist in the downfall of crypto maven Sam Bankman-Fried is prompting a reexamination of the implosion of the Terra algorithmic stablecoin ecosystem that wiped out around $40 billion in market value earlier this year.US prosecutors are said to be investigating Bankman-Fried, the founder of collapsed crypto exchange FTX and its sister trading platform Alameda Research, regarding his possible involvement in orchestrating the death spiral of TerraUSD (UST) and its affiliated token Luna, according to a report in the New York Times citing people with knowledge of the matter. Separately, Bloomberg News reported that FT...
Read More
Alameda Bet Big on Crypto Miner Genesis Before Sector Implosion
4Dec By adminNo Comments
Technology

Alameda Bet Big on Crypto Miner Genesis Before Sector Implosion

[ad_1] One of the bigger questions surrounding the collapse of Sam Bankman-Fried’s crypto empire is what venture investments his trading firm Alameda poured billions of dollars in. One of the bigger questions surrounding the collapse of Sam Bankman-Fried's crypto empire is what venture investments his trading firm Alameda Research poured billions of dollars in.It appears his largest bet was on the Bitcoin mining company Genesis Digital Assets during the height of the crypto gold rush. Alameda continued to pour money into the firm even as the price of Bitcoin tumbled and soaring energy costs wreaked havoc across the industry. Alameda has invested a total of about $1.15 billion in Genesis Digital, valuing the company at $5.5 billion in an April fund-raising round, according to an intern...
Read More