Tag: FTX

Sam Bankman-Fried’s legal team moves to pursue theory on FTX terms of service

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Lawyers representing former FTX CEO Sam “SBF” Bankman-Fried are seeking to bring up certain information from the crypto exchange’s terms of service during witness testimonies. In an Oct. 12 filing in United States District Court for the Southern District of New York, SBF’s legal team said the motion was aimed at addressing “address certain evidentiary issues” in the ongoing criminal trial. The issue at stake involves competing theories by prosecutors and the defense team over the alleged misuse of FTX funds. According to Bankman-Fried’s lawyers, prosecutors intended to call witnesses and…

THORswap back online 6 days after halt over detecting FTX funds

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Decentralized exchange (DEX) THORSwap has resumed operations after briefly going into maintenance mode due to detecting illicit funds on its platform. THORSwap took to X (formerly Twitter) on Oct. 12 to announce that the platform is back online. The platform asked users to resume their regularly scheduled swapping of over 5,500 assets across 10 blockchains from their own self-custody wallets. The protocol initially halted swaps on its platform on Oct. 6 as an immediate measure to counter the potential movement of illicit funds. THORSwap acknowledged that its DEX platform encountered…

Secret Alameda recording reveals exact moment staff learned about FTX deposits

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A 75-minute secretly recorded audio clip of Caroline Ellison has revealed the exact moment 15 former Alameda Research staff found out the hedge fund was “borrowing” user funds from FTX.  The full-length recording, obtained by Cointelegraph, provides fresh insights into the palpable tension felt by Ellison and Alameda staff in the lead-up to FTX’s collapse. “Alameda was kind of borrowing a bunch of money via open-term loans and using that to make various illiquid investments. So like a bunch of FTX and FTX US equity […] Most of Alameda’s loans…

FTX lost $100m in Terra/UST crash

Defense attorney Mark Cohen cross-examined former Alameda Research CEO Caroline Ellison after the witness said Sam Bankman-Fried cajoled her into making misleading social media statements and ordered loan repayments funded with stolen customer crypto. Witness testimony on day six revealed tenuous months leading to FTX’s collapse marked by subpar corporate practices and buried secrets.  Not only did Bankman-Fried oversee fake financial records sent to lenders like Genesis and hide FTT’s hollow value, per Ellison’s telling, FTX and Alameda also loaned at least $5 billion to select employees for speculative investments…

Changpeng Zhao’s tweet ‘contributed’ to collapse of FTX, claims Caroline Ellison

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According to former Alameda Research CEO Caroline Ellison, a single tweet from Binance CEO Changpeng Zhao (CZ) contributed to the failure of cryptocurrency exchange FTX. Testifying in Sam “SBF” Bankman-Fried’s criminal trial on Oct. 12, Ellison reportedly placed part of the blame for the collapse of FTX on CZ’s social media activity. In the now famous tweet on X (formerly Twitter) from Nov. 6, 2022, CZ announced that Binance would be liquidating its holdings of FTX Token (FTT) “due to recent revelations that have came [sp] to light”. As part…

Did SBF really use FTX traders’ Bitcoin to keep BTC price under $20K?

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Bitcoin (BTC) failed to hit $100,000 during the 2021 bull market because defunct exchange FTX kept selling BTC, analysis claims. In an X post on Oct. 12, Joe Burnett, senior product marketing manager at Bitcoin financial services firm Unchained, joined voices arguing that FTX executives suppressed BTC price strength. FTX testimony reveals mass BTC selling As the trial of former FTX CEO Sam Bankman-Fried, known as SBF, continues, new testimony paints a picture of market manipulation. This week, Caroline Ellison, former CEO of affiliated firm Alameda Research, reportedly told the…

Caroline Ellison Starts Day 3 of Testimony Against Former FTX Crypto Titan

“Bankman-Fried relied on Ellison and he trusted her to act as the CEO and manage the day-to-day,” Cohen said in his opening statement last week. “… As the majority owner of Alameda, he spoke to Ms. Ellison, the CEO, and he urged her to put on a hedge, something that would protect against such a downturn. She didn’t do so at the time, and this also becomes an issue later on, when the storm hit.” Source

FTX paid $100m in Chinese bribes to unfreeze $1b of investigated funds

Caroline Ellison, on day six of United States v Bankman-Fried, testified that FTX’s founder continued to lie to the public while liquidity and assets dried up behind the scenes. The second week of Bankman-Fried’s fraud for fraud allegations set headlines ablaze as former Alameda Research boss Caroline Ellison accounts of “Sam coins” and FTT’s importance in FTX’s financial operations.  FTT was not to fall below $1, Ellison said quoting Sam and discussing the token was a taboo outside of the inner circle which included Ellison herself, Gary Wang (CTO, Alameda/FTX),…