The November 2022 Alameda gap exposed vulnerabilities in the crypto market, shedding light on FTX and Alameda Research’s fraud. FTX collapse: Unraveling the cryptocurrency crisis of November 2022 In November 2022, the cryptocurrency world was rocked by the collapse of FTX, one of the largest cryptocurrency exchanges. The collapse was triggered by a liquidity crisis…
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At the time of bankruptcy, FTX faced a shortfall of $8 billion owing to its customers. Sam Bankman-Fried (SBF), the founder of cryptocurrency exchange FTX, claims that spending clients’ fiat deposits was just part of “risk management” for his intertwined crypto hedge fund Alameda Research. During the former crypto executive’s court testimony on October 31,…
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FTX’s former general counsel Can Sun testified Thursday in federal court that he was shocked to learn FTX founder Sam Bankman-Fried (SBF) had secretly transferred billions in customer funds to his hedge fund Alameda Research. Sun told prosecutors he resigned the day after realizing the scope of customer money siphoned, following spreadsheets showing $7 billion…
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Sam Bankman-Fried’s legal team is seeking permission to cross-examine Gary Wang over FTX lawyers’ involvement in Alameda loan approvals. Sam Bankman-Fried’s legal team is looking for permission to probe the alleged involvement of FTX lawyers in the issuance of $200 million worth of loans from Alameda that were approved by Gary Wang. As previously reported…
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Nansen analysts observed “unusual transactions between FTX and Alameda” in the days leading up to FTX’s bankruptcy. Blockchain data analysts from Nansen have revisited the days leading up to the collapse of FTX, including the transfer of $4.1 billion worth of FTT tokens between the exchange and Alameda Research. A Nansen report shared with Cointelegraph…
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Bitcoin is known to be a very volatile digital asset as its price is often wont to rise and fall unexpectedly, and sometimes without a clear reason. One of these instances of the digital asset flash-crashing was back in 2021 when the price of Bitcoin had fallen 87% on some exchanges in a matter of…
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Founder of bankrupt crypto exchange FTX, Sam Bankman-Fried (SBF), has sought to avoid being jailed, denying prosecutors’ accusations of witness tampering that followed an interview he gave for the New York Times. The indicted crypto mogul also argued that revoking his bond would violate his right to free speech. Bankman-Fried Says He Never Tried to…
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Crypto exchange FTX is trying to regain $1 billion in a lawsuit against founder Sam Bankman-Fried (SBF) and some former executives. FTX’s new management argues the funds were misappropriated through dubious deals and transactions made before the coin trading platform went bankrupt last fall. Failed Crypto Firm FTX Files New Lawsuit Against Founders and Chiefs…
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When FTX tried to sell the platform after filing for bankruptcy, the top bid was for just $1 million, representing a 99.5% decline in value. FTX lawyers are suing former CEO Sam Bankman-Fried, co-founder Zixiao Wang, and former senior executive Nishad Singh over the $220 million acquisition of stock-clearing platform Embed, alleging lack of due…
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Court filings reveal that the FTX co-founder is seeking access to a $10 million insurance plan to cover his attorney fees. FTX debtors and unsecured creditors have opposed Sam Bankman-Fried’s request, arguing that every dollar spent on his defense is “one less dollar” available to cover the losses of the debtors. FTX Debtors and Unsecured…
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