New allegations against SBF and Binance as Senate, Congress hearings dissect FTX Cryptocurrencies
Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! On Tuesday, new FTX CEO John Ray testified before the House Committee on Financial Services into the collapse of SBF’s former exchange.
Other concerns highlighted by Ray include the fact that assets belonging to different companies and divisions within the FTX group were commingled, documentation for nearly 500 investments made by FTX were missing altogether, there were no audited or reliable financial statements, and no financial or risk management functions were in place.
There were some new allegations made about the cause of FTX’s collapse as well. Former FTX spokesperson Kevin O’Leary claimed that Bankman-Fried told him during a phone conversation that $2-3 billion worth of company funds were used to buy back FTX shares from Binance because CZ refused to participate in the disclosures to regulators that FTX needed to perform to get licensed in different markets.
New information also emerged from government court filings. The CFTC claimed that FTX created a fake ‘Korean’ customer account which was used to hide Alameda’s mounting debts to the exchange, which ultimately rose to over $8 billion. The CFTC said SBF was aware of the account and its purpose, referring to it as “our Korean friend’s account” in internal correspondence.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
First reported instance of whistleblowing at FTX, and it’s not surprisingThe former co-CEO of FTX Digital Markets Ryan Salame had tipped off the Securities Commission of the Bahamas (SCB) on 9 November that FTX was transferring customer funds to its sister trading firm Alameda Research. Salame also told the SCB that only three people, namely former FTX CEO Sam Bankman-Fried “SBF,” FTX co-founder Zixiao “Gary” […]
Read more »
Video: U.S. charges FTX founder with massive fraudU.S. prosecutors on Tuesday accused Sam Bankman-Fried, the founder and former CEO of crypto currency exchange FTX, of fraud and violating campaign finance laws by misappropriating his customers' funds, saying the investigation is ongoing and 'moving very quickly.' Zachary Goelman produced this report.
Read more »
Former FTX CEO Bankman-Fried arrested in Bahamas as U.S. presses criminal chargesThe U.S. Attorney\u0027s office in Manhattan confirmed Bankman\u002DFried had been arrested in The Bahamas. Find out more.
Read more »
FTX contagion has done little to dampen the optimism of crypto holders, study showsA recent survey commissioned by Bakkt shows that crypto holders and crypto curious continue to have a high level of interest in purchasing crypto despite the FTX fallout.
Read more »
A non-crypto guide to the FTX collapse and its founder Sam Bankman-FriedWhat you should know of Sam Bankman\u002DFried and the demise of his crypto empire.
Read more »
A non-crypto guide to the FTX collapse and its founder Sam Bankman-FriedWhat you should know of Sam Bankman\u002DFried and the demise of his crypto empire.
Read more »