Tag: FTX

FTX founder Sam Bankman-Fried faces two criminal trials

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Criminal charges against FTX co-founder Sam Bankman-Fried have been split, with the former CEO now facing two separate trials for his alleged mismanagement of the crypto exchange. Bankman-Fried is facing a total of 13 charges relating to fraud, fraud conspiracy and bribery. A trial for all the charges was scheduled to begin on Oct. 2. Five of those charges will now be split off into a second trial on March 11, 2024, according to a June 15 ruling from United States District Court Judge Lewis Kaplan. The full text of Judge Kaplan’s…

Amy Wu, Former FTX Ventures Head, Joins Menlo Ventures

“At Menlo, Amy will make early-stage investments in technology-driven categories, including gaming, blockchain, and new consumer experiences made possible by tech shifts like generative AI. Her deep experience as both an investor and operator across a variety of consumer businesses will help her hit the ground running,” wrote Menlo Ventures partner Shawn Carolan in an announcement post. Source

US Prosecutors to Reduce Criminal Charges on FTX Founder SBF in October Trial

The DoJ prosecutors have eliminated five charges relating to fraud, conspiracy, and bribery initially levied against the disgraced FTX founder. In a court filing on Wednesday, June 14, prosecutors with the US Department of Justice (DoJ) told the district judge that they would be proceeding with eight charges in the trial levied against FTX founder Sam Bankman-Fried back in December 2022. The DoJ lawyers also cited a motion filed by SBF in the Bahamas wherein he argued that the 13 charges that he faced were not in the original indictment,…

U.S. Justice Department Agrees to Try FTX Founder Sam Bankman-Fried on Original Charges Only for Now

Those original charges include counts one (conspiracy to commit wire fraud on customers of FTX), two (wire fraud on customers of FTX), three (conspiracy to commit fraud on FTX customers tied to derivatives), five (conspiracy to commit securities fraud against FTX investors), seven (conspiracy to commit wire fraud on lenders to Alameda Research), eight (wire fraud on lenders to Alameda Research), 11 (conspiracy to commit money laundering) and 12 (conspiracy to make unlawful political contributions and defraud the Federal Elections Commission). Source

FTX authorized to ‘permanently redact’ customer names from all bankruptcy filings

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Bankrupt cryptocurrency exchange FTX has been granted permission to remove individual customers from all court filings in its bankruptcy case. Meanwhile, the names of companies and institutional investors will be sealed for another 90 days. In recent times, mainstream media outlets have pushed for access to the list of FTX customers, arguing that the press and public have a “presumptive right of access to bankruptcy filings.” However, FTX has consistently objected to these requests, arguing that disclosing the names could potentially undermine the sale value of the crypto exchange if…

FTX argues releasing ‘valuable’ customer list will harm its sale value

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The list of around nine million FTX customers is “extraordinarily valuable” and could harm the crypto exchange’s sale value if released, a member of the FTX restructuring team has argued. In a court hearing released June 8, Kevin Cofsky, a partner at the investment bank Parella Weinberg on retainer to FTX, said that if competitors were to gain knowledge of FTX’s customers it “would be detrimental” to the exchange’s restructuring efforts. Cofsky is part of the team aiming to squeeze the maximum amount of value from FTX which could involve…

SEC’s crypto actions surged 183% in 6 months after the FTX collapse

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Cryptocurrency-related enforcement actions undertaken by the United States securities regulator significantly increased in the six months following the bankruptcy of cryptocurrency exchange FTX. An analysis of press releases from the Securities and Exchange Commission (SEC) and news reports on its actions found that in the six months preceding FTX’s collapse — the SEC undertook approximately six enforcement actions. In the six months after FTX’s bankruptcy on Nov. 11, 2022, SEC crypto-related enforcement actions jumped to at least 17, an estimated increase of 183% from the preceding period. Graph showing the…