Sam Bankman-Fried, the creator of FTX, has been called a “liar” by Binance CEO Changpeng Zhao for intentionally stealing from his clients.
As investors withdrew $6 billion from the cryptocurrency platform last week, Bankman-Fried transferred $10 billion of FTX customer funds to the cryptocurrency trading firm Alameda Research.
Of the $10 billion transferred to Alameda, which his on-and-off girlfriend Caroline Ellison managed, about $2 billion is said to be still missing.
One of the biggest crypto market crashes ever happened, and former crypto star Bankman-Fried was at the center of it all when he said, “I f***** up.”
As Bankman-Fried, 30, tries to hide out in the Bahamas amid the drama, the FBI is currently looking into the company.
Sam “knew” that Zhao was “using the user fund to do trading for Alameda,” according to Zhao’s sensational claim.
He continued, “I’m sure he’s been doing this for a while, and nobody else knew until just recently.
As investors withdrew $6 billion from the cryptocurrency platform last week, Bankman-Fried moved $10 billion of FTX client funds to the cryptocurrency trading firm Alameda Research.
I’m just surprised. Before a week ago, I was unaware that he had lied to everyone.
He asserts that even if he favors more rules for the cryptocurrency sector, it is doubtful that they would have stopped the collapse of FTX.
Zhao continued, “Regulations do not stop it when someone lies or when there is a bad player who only wants to do bad things.
Gun control does not guarantee that no one will use a weapon to murder someone.
Binance liquidated its interests in FTT, the digital asset that FTX developed, after withdrawing from negotiations to acquire FTX.
Customers scrambled to withdraw their cash, resulting in a $6 billion run on the cryptocurrency exchange.
Zhao, also known as CZ, told CNBC that it was “clear pretty soon that there was a misappropriation of user funds” and claimed that it was obvious that the FTC had a problem.
pathetic tech bro The demise of Sam Bankman-Fried’s business, FTX, was attributed by the 30-year-old (left) to his ex-girlfriend Caroline Ellison (right). Ellison joined Alameda with only 18 months of trading experience before becoming its CEO.
It was obvious that Bankman-Fried had lied to his customers, investors, venture capitalists, and staff, he claimed.
We didn’t go very far because we could no longer trust the data and it was difficult for us to conduct our due diligence.
Throughout the summer, Bankman-Fried spoke out about unethical behavior in the crypto industry and how such actions “massively more harm than good.”
We are extremely concerned about anyone using the tokens they produce as collateral for borrowing money. That’s not what we do at Binance.
Bankman-Fried shockingly admitted that his adherence to morality was “just a front” and that he “feels bad” for those who were “f***** by it.”
SEC Chair Gary Gensler is currently the subject of serious inquiries regarding his relationship with the disgraced cryptocurrency wunderkind as well as the lack of regulation of the market, which Gensler himself has referred to as the Wild West.
Before his downfall, Bankman-Fried lied to politicians and regulators to try to persuade them that cryptocurrencies were a valuable asset that should be embraced.
However, he said “f*** regulators” in a recent interview with Vox and claimed that they were “making everything worse.”
Numerous A-list celebrities who openly supported the disgraced cryptocurrency trading platform FTX have been named in a $11 billion class action lawsuit.
Stars like Tom Brady, Gisele Bundchen, Shaquille O’Neal, Steph Curry and Larry David are among those listed in the claim filed in Florida.
Authorities in America and the Bahamas, where FTX was domiciled and Bankman-Fried is presently holed up, are contemplating the idea of extraditing him to the United States for interrogation.
The controversy prompted a crisis of confidence in cryptocurrencies as a whole and led the value of assets, including Bitcoin to drop.
Last week it was disclosed that Alameda was reportedly sent $10 billion of FTX client money in secret by Bankman-Fried.
Around $2 billion of the $10 billion sent to Alameda is apparently still missing.
And now a slew of A-list celebrities who publicly promoted FTX has been sued in a class action lawsuit totaling $11 billion.
Stars like Tom Brady, Gisele Bundchen, Shaquille O’Neal, Steph Curry and Larry David are among those listed in the claim filed in Florida.
The quick ascent and abrupt demise of crypto exchange FTX
Cryptocurrency exchange FTX has crashed.
Here is a history of FTX from its creation in 2019:
2019:
May – Former Wall Street trader Sam Bankman-Fried and ex-Google employee Gary Wang founded FTX, the owner and operator of FTX.COM cryptocurrency exchange.
2020:
August – FTX acquired mobile portfolio tracking application, Blockfolio for $150 million.
2021:
July – A $900 million funding round valued FTX at $18 billion.
September – FTX struck a sponsorship contract with Mercedes’ Formula 1 team.
October – FTX secured cash at a value of $25 billion from investors including Singapore’s Temasek and Tiger Global.
2022:
On January 27, FTX’s U.S. division said that it had received $400 million in its first investment round from investors such as SoftBank and Temasek, valuing the company at $8 billion.
FTX collected $400 million from investors, including SoftBank, on January 31 for a $32 billion value.
Larry David appears in an FTX Super Bowl ad on February 13.
Celebrities like Tom Brady, Katy Perry, Tony Blair, and Bill Clinton attend the Crypto Bahamas conference with Bankman-Fried from April 26 to April 29.
On June 4, FTX allegedly agreed to pay $135 million for the naming rights to the Miami Heat’s home court.
On July 1, FTX and BlockFi agreed to a contract with an option for FTX to purchase BlockFi for up to $240 million.
On July 22, FTX made a partial rescue offer to the insolvent cryptocurrency lender Voyager Digital. It was deemed a “low-ball offer” by Voyager.
On July 29, FTX announced that it had received final clearance to run its exchange and clearing house in Dubai.
On August 19, a U.S. bank regulator ordered the cryptocurrency exchange FTX to stop making “false and misleading” statements about whether the company’s funds are covered by the government.
FTX’s venture capital fund announced on September 9 that it will purchase a 30% interest in SkyBridge Capital.
FTX’s native token, FTT, was a major source of income for Bankman-cryptocurrency Fried’s trading company Alameda Research, according to a leaked balance sheet that was revealed by CoinDesk on November 2.
On November 6, Binance CEO Changpeng Zhao said that his company will sell its stakes in FTT due to unnamed “new developments.”
Bankman-Fried said on November 7 that “FTX is OK.” The assets are good.
FTT drops by 72% on November 8 as customers flood the exchange with withdrawal requests. In a non-binding agreement, Binance provides a possible rescue.
‘As a consequence of corporate due diligence, as well as the newest press reports alleging mismanaged client cash and suspected US government investigations, we have decided that we will not pursue the prospective purchase of FTX.com,’ said Binance, withdrawing from the rescue scheme on November 9.
Bankman-Fried leaves his position as CEO on November 11 and FTX files for Chapter 11 bankruptcy.
On November 13, the Bahamas’ police department said that a team from its Financial Crimes Investigation Branch was looking into possible criminal activity.
Nov. 15 – Bankman-Fried tweets that he is “meeting in-person with regulators and working with the teams to do all we can for consumers” as he continues to beg investors for money to pay the firm’s losses.