Tag: FTX

FTX clients face deceptive priority withdrawal scam

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FTX users are reportedly being targeted in a withdrawal scam. X (formerly Twitter) user and FTX creditor advocate Sunil cautioned FTX account holders about the phishing scam and urged them to avoid clicking on dubious links. Sunil’s X post highlights the ever-evolving tactics online scammers employ. FTX users have reported receiving deceptive emails purportedly sent by FTX Trading, West Realm Shires Services and FTX EU. The emails falsely offer FTX creditors an exclusive chance for immediate asset withdrawals, bypassing waiting periods and legal proceedings. One example of a fraudulent email states: “We…

Sam Bankman-Fried asked FTX attorney to ‘come up’ with legal argument for $8B hole

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Former FTX CEO Sam Bankman-Fried instructed former general counsel Can Sun to “come up” with any legal explanation for the $8 billion hole in Alameda Research’s books, according to Sun’s testimony in court on Oct. 19. Sun flew from Japan to testify in the ongoing trial as part of his nonprosecution agreement with the United States Department of Justice. During his testimony, Sun revealed that he learned of the billion-dollar hole between the two companies on Nov. 7 after receiving a spreadsheet indicating the debt. “I was shocked,” he told…

FTX founder misled in-house lawyers on Alameda; use of customer funds

Prosecutors called FTX general counsel Can Sun to the stand following financial forensics and evidence of internal communications potentially implicating Sam Bankman-Fried in criminal wrongdoing at his crypto exchange and trading firm, Alameda Research. Expert testimonies from a Notre Dame Alumni and an FBI analyst in United States v Sam Bankman-Fried provided more details as to what happened at FTX. Bank statements detailed transactions from Alameda to personal accounts and super PACs, almost certainly financed with FTX customer crypto. Bankman-Fried’s Twitter DMs entered as trial exhibits highlighted profanity-filled remarks aimed…

FTX Diverted Customer Funds to Buyback Stake from Rival Company Binance

It was disclosed that FTX customers’ money was spent on business investments, political and charity donations, and real estate. Beleaguered cryptocurrency exchange FTX spent customer’s deposits for business investments, political contributions, charitable donations, real estate, and the buyback of shares from competitor exchange Binance. During a hearing on Wednesday at the ongoing Sam Bankman-Fried (SBF) trial, professor Peter Easton, an accounting officer hired by the US Department of Justice (DOJ) to investigate the company’s financial records, revealed that the exchange spent billions of dollars repurchasing its stakes from Binance. CZ…

FTX Used Customer Funds to Buy Back Binance Stake, Accounting Prof Reveals

CryptoX – Cryptocurrency Analysis and News Portal “Oh, yes,” Easton said when asked by the court whether FTX ever spent user deposits. The professor testified these user deposits were reinvested into businesses and real estate, used to make political contributions and donated to charity, as reported. Original Source The post FTX Used Customer Funds to Buy Back Binance Stake, Accounting Prof Reveals appeared first on CryptoX. CryptoX Portal

financial forensic report exposes FTX $9.3b money trail

Following evidence of political affiliations unearthed by an FBI agent, a government witness in Sam Bankman-Fried’s criminal trial provided financial analysis pointing to conspiracy and fraud based on FTX and Alameda’s bank records. An FBI analyst plus a former FTX and Alameda executive testified to Bankman-Fried’s courting of the political class which evidence suggests was funded with user deposits.  Prior testimonies from the first and second weeks of the trial backed up these claims, with additional accounts that said Bankman-Fried spearheaded fraud, conspiracy, money laundering and campaign finance violations. The…

Nishad Singh says there is ’a lot’ he doesn’t remember about FTX in 2022 — SBF trial

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Lawyers representing former FTX CEO Sam “SBF” Sam Bankman-Fried conducted their cross-examination of Nishad Singh, pressing the former engineering director on events leading to Alameda Research using funds from the crypto exchange. According to reports from the courtroom on Oct. 17, Singh admitted “there was a lot” he didn’t remember from June to July 2022 under questioning from SBF defense attorney Mark Cohen. The former FTX director reportedly said he had no knowledge of a software bug that exaggerated Alameda’s liabilities until overhearing a discussion between former FTX chief technology…

FTX Proposes Returning Up to 90% of Creditor Holdings in Amended Bankruptcy Plan

The team overseeing the bankruptcy process has put forward a new plan to distribute the remaining assets to affected creditors. The proposal aims to give creditors back up to 90% of their holdings at the time of FTX’s collapse. Cryptocurrency exchange FTX has introduced an amended proposal to return a substantial portion of funds to creditors impacted by the company’s bankruptcy last November. The Troubled FTX Exchange FTX, once one of the largest crypto exchanges, filed for bankruptcy protection after a liquidity crisis prompted mass customer withdrawals. This left FTX…