Sun. Jan 29th, 2023

Former FTX chief govt Sam Bankman-Fried (C) arrives to enter a plea earlier than US District Choose Lewis Kaplan within the Manhattan federal court docket, New York, January 3, 2023.

Timothy A. Clary | AFP | Getty Photos

In a Thursday morning Substack publish, FTX co-founder Sam Bankman-Fried denied allegations that he stole billions in person funds and recommended that Binance CEO Changpeng “CZ” Zhao carried out a monthslong effort to deliver down FTX.

It’s Bankman-Fried’s first vital response to federal allegations that he directed an $8 billion fraud that destroyed his $32 billion crypto conglomerate. Earlier this month, Bankman-Fried pleaded not responsible to eight federal prices together with fraud and cash laundering, and was launched on a $250 million recognizance bond. His trial will start in October. Bankman-Fried is the topic of complaints from the Securities and Alternate Fee and the Commodity Futures Buying and selling Fee as nicely.

His publish gives his perspective on the collapse of FTX and his hedge fund Alameda Analysis, and contains purported FTX and Alameda monetary metrics, caveated as “JUST AN ESTIMATE.”

At first of 2022, for instance, Bankman-Fried says he estimated Alameda’s complete internet belongings at $99 billion. By October, he believed that his hedge fund’s internet belongings had fallen to $10 billion. He pinned the collapse on a broader market downturn, even evaluating his FTT token’s efficiency to that of Tesla, bitcoin and the Invesco QQQ, an ETF that tracks the Nasdaq 100.

Bankman-Fried in contrast the efficiency of his change’s token towards the Invesco QQQ and different belongings in his Substack publish.

Chapter legal professionals, federal prosecutors and regulators have contradicted lots of the claims Bankman-Fried made in his publish.

Regulators and prosecutors allege that neither FTX nor Alameda have been wholly authentic companies however have been devices of Bankman-Fried’s fraud.

FTX’s restructuring officers have mentioned the companies confronted vital and inexplicable money shortfalls after FTX filed for chapter in November.

The case towards Bankman-Fried was constructed with the help of his longtime executives Caroline Ellison and Zixiao “Gary” Wang, each of whom pleaded responsible to prices of fraud. Bankman-Fried’s publish didn’t acknowledge their cooperation with federal probes.

In his publish, Bankman-Fried additionally famous that different crypto corporations have been “blown out.” He didn’t acknowledge that three of these corporations — BlockFi, Genesis and Gemini —allegedly suffered due to FTX’s collapse.

A lot of his claims have been ones he is made earlier than, together with that FTX US remained solvent, that Alameda’s liquidity disaster was not attributable to misconduct however due to broader market turbulence, and that FTX Worldwide and Alameda have been wholly authentic, worthwhile companies.

The previous FTX CEO additionally pointed to a Nov. 6 tweet from Binance’s Zhao because the end result of an “extraordinarily efficient months-long PR marketing campaign towards FTX.”

Zhao has denied these claims. “FTX killed themselves […] as a result of they stole billions of {dollars},” the Binance CEO tweeted in December.

On the finish of the publish, Bankman-Fried doubled down. “All of which is to say: no funds have been stolen,” the 30-year-old wrote.  

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By Admin

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