Seeing his net worth plummet from $16 billion to $0 in a matter of days appears to be the least of Sam Bankman-Fried's problems.
last week, revelations about the use of customer funds not only shocked Bankman-Fried’s “admirers” and employees, they “tore a hole in FTX’s finances” and “set the stage for the exchange’s swift implosion.”under investigation at the Securities and Exchange Commission and the Commodity Futures Trading Commission.
According to prosecutors, using customer money for a purpose that was not clearly communicated can be the basis for fraud or embezzlement charges.
that FTX was “fine” and so were its assets, particularly in light of the fact that he later deleted such claims.notes, “Authorities would need to show Mr. Bankman-Fried intended to mislead customers when he wrote those tweets,” and while it can be difficult to prove intent, prosecutors could point to the allegedly secret
SBF undertook to prop up Alameda. “That is all potentially powerful circumstantial evidence of intent,”that of the roughly $10 billion in customer funds SBF moved from FTX to Alameda, at least $1 billion, and potentially up to $2 billion, had “vanished.” The outlet also wrote that Bankman-Fried has “secretly transferred” the money; in response, he texted Reuters to say he “disagreed with the characterization” of the transfer, writing, “We didn’t secretly transfer.
They said the “backdoor” allowed Bankman-Fried to execute commands that could alter the company’s financial records without alerting other people, including external auditors. This set-up meant that the movement of the $10 billion in funds to Alameda did not trigger internal compliance or accounting red flags at FTX, they said.that he was “piecing together” what had happened at FTX, adding: “I was shocked to see things unravel the way they did earlier this week.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sam Bankman-Fried is ‘under supervision’ in Bahamas, looking to flee to DubaiFormer FTX employees including Sam Bankman-Fried are currently 'under supervision' in the Bahamas by local authorities, a source told Cointelegraph.
Read more »
FTX founder Sam Bankman-Fried in the Bahamas as customers’ billions go missing in company collapseFTX underwent a $16 billion implosion amid reports that co-founder Sam Bankman-Fried had been funneling money to a sister trading company.
Read more »
FTX's Sam Bankman-Fried says he is in Bahamas despite murmurs that he fledFallen FTX founder Sam Bankman-Fried says he is in the Bahamas despite buzz that he fled to Argentina after his company's collapse
Read more »
Bahamian police interviewed FTX founder Sam Bankman-FriedFTX founder Sam Bankman-Fried was reportedly interviewed by police in the Bahamas this weekend as investigations into the company's downfall intensify
Read more »
FTX’s Sam Bankman-Fried Starts Posting Mysterious TweetsFTX CEO Sam Bankman-Fried has published mysterious tweets that have puzzled the cryptocurrency community
Read more »
FTX, Sam Bankman-Fried Sit in the Crosshairs of U.S. ProsecutorsFTX’s collapse has exposed the company and founder Sam Bankman-Fried to potential U.S. criminal liability, attorneys say
Read more »