FTX

Lawyers for FTX’s disgraced former boss, Sam Bankman-Fried (SBF), have reached an agreement with prosecutors allowing him to contact certain FTX employees. Besides certain restrictions, the 30-year-old may contact such parties through a host of new mediums. The New Rules Updated terms surrounding Bankman-Fried’s contact restrictions were sent to Lewis A. Kaplan – a judge for the Southern District of New York – in a letter on Monday.  Bankman-Fried’s lawyers said the updated conditions were a response to the government…

Crypto bank Silvergate is under investigation by the US Justice Department’s fraud unit for its dealings with FTX and its sister trading arm, Alameda Research.  The investigation is reviewing accounts concerning both businesses, which have been widely accused of engaging in a multi-billion dollar fraud using FTX customer funds.  What Happened at Silvergate? As reported by Bloomberg on Thursday, the La Jolla, California-based bank hasn’t been accused of any wrongdoing, and investigations could end without any charges being laid. However,…

An independent examiner has revealed shocking details surrounding the inner workings of Celsius – a crypto lender that filed for bankruptcy in July 2022. The examiner claimed that Celsius did not operate by the business model that it presented to customers. He likened it to a Ponzi scheme, much like FTX – a company that happened to have used the same accounting software: QuickBooks.  The Truth About CEL Token Per a filing from examiner Shoba Pillay on Tuesday, Celsius had…

FTX’s lawyers have at last published a comprehensive, 116-page list of all creditors to the now defunct crypto exchange.  The document contains roughly 9.7 million customer names, showing that FTX’s connections spanned from airlines to universities, to media giants.  FTX’s Creditors The list, filed on Wednesday, shines a light on institutions invested in the company, per the request of Judge John Dorsey, who is overseeing the proceedings. During a meeting in early January, he allowed the names of individual creditors…

Crypto lending giant BlockFi had exposure exceeding $1.2 billion to Sam Bankman-Fried’s collapsed FTX-Alameda empire. The figure exceeds the size of BlockFi’s previously stated exposure and amounts to nearly half of the company’s assets.  BlockFi’s Massive Exposure As reported by CNBC, documents detailing BlockFi’s exposure were meant to be redacted but were mistakenly published without the redactions on Tuesday.  The unredacted filing showed BlockFi held $415.9 million of assets linked to FTX, alongside $831.3 million in loans to Alameda, as…

FTX debtors have identified $5.5 billion of liquid assets associated with both FTX and FTX US. Meanwhile, a substantial portion of it has gone up in smoke.  The latest update from the company states that $90 million in digital assets from the exchange “was subject to unauthorized third-party transfers post-petition.” FTX US Asset Shortfall FTX debtors unveiled details about its asset composition during a meeting with the  Official Committee of Unsecured Creditors (UCC) of FTX on Tuesday. Its numbers indicate…

Skybridge Capital founder Anthony Scaramucci is putting money behind a new crypto firm formed by Brett Harrison, former boss of the defunct FTX US.  The software company will reportedly create a service that lets crypto traders access both centralized and decentralized markets.  Scaramucci Sticks By FTX US Boss According to Bloomberg, Harrison said Scaramucci will be using his own funds to back the former CEO’s software venture. The software in mind will let traders write algorithms for their trading strategies,…

To prevent another FTX-like blowup, the Financial Stability Board (FSB) is preparing a global framework for crypto companies to be regulated like banks.  Its worldwide policy recommendations are expected to be laid out by early 2023, and enacted soon after. Responding to FTX As FSB secretary general Dietrich Domanski told the Financial Times, The board is already in “strong agreement” about the way forward for industry regulation. The goal, he said, is to have crypto service providers “held to the…

In a Tuesday press release, the US Securities and Exchange Commission announced charges against disgraced FTX founder Sam Bankman-Fried. The charges come shortly after Bahamian authorities took custody of the ex-CEO of the now-defunct exchange. SBF Falsely Promoted FTX The SEC’s complaint pointed out that Bankman-Fried had pushed his exchange platform as a reliable option for crypto trading. As such, since May 2019, the Bahamas-based firm was able to raise over $1.8B from equity investors. About $1.1B of this reportedly…