Tag: FTX

Rating agencies, not regulators, can rebuild trust in crypto after FTX

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The last year has been an eventful one for the crypto space. The collapse of the Terra ecosystem and its TerraUSD (UST) algorithmic stablecoin saw $50 billion wiped off the market in a flash. And more recently, FTX, an exchange many thought was “too big to fail,” came crashing down. There’s been no shortage of drama in the space, which has seen name-stay businesses and projects disappear along with investors’ funds.  Given the events of this year, it’s inevitable that serious government attention is coming for the space, in every…

SEC Charges Against FTX, Alameda Execs Wang and Ellison Reveal Key Findings, US Regulator Says FTT Is a Security – Bitcoin News

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On Dec. 21, 2022, members of U.S. law enforcement detailed that FTX co-founder Gary Wang and ex-Alameda Research CEO have pleaded guilty to financial fraud charges. The recent charges against Wang and Ellison highlight some key findings and according to the U.S. Securities and Exchange Commission (SEC), FTX’s exchange token FTT is considered a security. SEC Complaint Says SBF ‘Directed’ and ‘Instructed’ High-up Execs Like Caroline Ellison to Commit Fraud U.S. attorney Damian Williams told the public on Wednesday that charges have been filed against Caroline Ellison, the former CEO…

FTX creditor committee hires Paul Hastings LLP for bankruptcy proceedings: Report

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After taking pitches from many law firms, the nine-member committee representing unsecured creditors of the disgraced crypto exchange FTX has decided on a legal adviser, the Wall Street Journal reported on Dec. 21.  Global law firm Paul Hastings LLP was hired to look after the interests of unsecured creditors in the bankruptcy case, including millions of FTX customers. According to the WSJ‘s sources, a process to select a financial adviser is also underway. The committee of FTX creditors was appointed on Dec. 16 by the United States Justice Department. Its…

3 FTX Execs Have Snitched on SBF, Now Scrutiny Is Aimed at Nishad Singh and Ramnik Arora – Bitcoin News

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On Dec. 21, U.S. law enforcement officials from the Southern District of New York (SDNY), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) revealed they imposed fraud charges against FTX co-founder Gary Wang and ex-Alameda Research CEO Caroline Ellison. After Wang’s and Ellison’s surrender announcement, the public has been wondering where FTX’s director of engineering, Nishad Singh, is located and whether or not he has come forward yet. Following Ellison’s and Wang’s Guilty Plea, All Eyes Are Focused on 2 More Top FTX Execs Reports…

Third parties could return FTX funds directly to customers: Law firm

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More than one million creditors of failed crypto exchange FTX have been waiting to be made whole since before the firm’s bankruptcy filing on Nov. 11, but according to one expert, recipients of donations and contributions may have a legal means of returning the funds directly to investors and customers.  Louise Abbott, a partner at United Kingdom-based firm Keystone Law, told Cointelegraph it was “extremely unlikely” FTX would have a legal leg to stand on in its demands for the voluntary return of political campaign donations, grants, and other contributions…

Ripple CEO Brad Garlinghouse Criticizes ‘Double Standard’ in Wells Fargo Fine Case Compared to FTX Crash

The CEO of Ripple recently suggested that Wells Fargo did not receive the ‘FTX treatment’ despite exploiting its customers.  Ripple CEO Brad Garlinghouse recently likened the recent Wells Fargo fund management fiasco to the collapse of FTX. However, Garlinghouse disapproved of what he perceived as a hypocritical reaction to Wells Fargo’s case. According to the Ripple CEO, the leading American bank’s $3.7 billion fine for mismanaging customers’ interests was on the same scale as FTX’s monumental fall. However, Garlinghouse says the outrage directed at Wells Fargo turned out to be barely noticeable compared to the sunken crypto…

FTX Creditors Hire Law Firm Paul Hastings as Representation: WSJ

“They can be contacted,” said Sarkessian, a U.S Department of Justice (DoJ) official charged with overseeing bankruptcy cases, of the lawyers that were yet to be appointed. “They do not represent you [the creditors] personally. They may be able to provide some help though, and they may even create their own website potentially for information for creditors.” Source

FTX, Alameda execs plead guilty to fraud charges: Community responds

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In the newest update to the FTX saga, former Alameda Research CEO Caroline Ellison and former FTX co-founder Gary Wang plead guilty to fraud charges and are currently helping with the investigation of former FTX CEO Sam Bankman-Fried. As the news broke, crypto community members shared their thoughts on the new development.  From wondering where customer funds went and ridiculing Ellison’s trading skills to wondering how much insider trading information the executives gave to Shark Tank star Kevin O’Leary, members of the crypto community tweeted various reactions to the executives…