Tag: FTX

FTX Lawyers Hit Back at Creditors Criticizing Restructuring Plan After ‘Many Months’ of Work

The lawyers argued that this would “require relief from this Court,” they would be faced with a separate risk of commingling of their treasury investments, and the step “creates a risk of loss in the event of a need for rapid monetization, or the lack of liquidity in the surety collateral market, which is not an idle concern given the recent bank failures allegedly caused in part by overinvestment in U.S. treasuries.” Source

FTX founder to face charges over illegal campaign finance scheme

US authorities are preparing to charge FTX founder Sam Bankman-Fried with an illegal campaign finance scheme, per court documents filed on Aug. 8. In a twist to the legal case, the prosecutors plan to file a superseding indictment for the week of Aug. 14 to incorporate Bankman-Fried’s alleged illegal campaign finance scheme into seven other existing charges. Prosecutors allege that Bankman-Fried used stolen customer funds to finance an unlawful “political influence campaign” and attempted to conceal this money through “political straw donations.” In a statement, the prosecutors explained, “The evidence…

Temasek, Sequoia Capital, Softbank, leading VCs face lawsuit for “abetting” FTX fraud

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Eighteen leading venture capital (VC) investment firms, including Temasek, Sequoia Capital, Sino Global and Softbank, have been named as defendants in a class-action lawsuit filed in the United States District Court for the Northern District of California for their links to the now-bankrupt crypto exchange FTX. The lawsuit, filed on Aug.7, alleged that the investment firms were responsible for “aiding and abetting” the FTX fraud. The suit claims that the defendants used their “power, influence and deep pockets to launch FTX’s house of cards to its multibillion-dollar scale.” A snippet of Cabo…

Former FTX exec Ryan Salame and US prosecutors are discussing a plea deal: Report

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Ryan Salame, the former co-CEO of FTX Digital Markets, is reportedly discussing a guilty plea with authorities in the United States. According to an Aug. 8 Bloomberg report, lawyers for Salame could enter a guilty plea as early as September, in advance of former FTX CEO Sam Bankman-Fried’s criminal trial, scheduled to start on Oct. 2. Prosecutors had reportedly been investigating Salame for potential violations of U.S. campaign finance laws related to his girlfriend Michelle Bond’s run for Congress, in which they both allegedly exceeded the federal limits on contributions.…

Coinbase battles US SEC, Worldcoin concerns mount, FTX announces reorganization plans

This week, Coinbase’s legal dispute with regulators unfolds as the crackdown on hacks and scams intensifies. Meanwhile, Worldcoin is under scrutiny and FTX announces reorganization plans. Coinbase vs. US SEC Coinbase Global (COIN) continues to garner significant attention for its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).  Coinbase CEO Brian Armstrong claimed that the SEC mandated the cessation of all cryptocurrency trading, except for Bitcoin, on the exchange, a Financial Times report revealed. Per Armstrong, the SEC’s request came before their lawsuit against the exchange for non-compliance…

US DoJ wants former FTX boss, Sam Bankman-Fried, to be detained

The United States Department of Justice (DoJ) has asked for Sam Bankman-Fried, the former CEO of FTX, a now-defunct exchange, to be detained. The request was made in a letter addressed to Judge Lewis A. Kaplan of the United States District Court for the Southern District of New York. Bankman-Fried is being charged with witness tampering and the unauthorized release of Ellison’s private writings to the New York Times, which allegedly harmed her reputation. The DoJ strongly disagrees with the defense’s argument that removing Bankman-Fried’s bail would infringe on his right to…

FTX CEO Says Embattled Exchange Ready for Bankruptcy Plan That Will Extinguish FTT Token Claims

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The bankrupt crypto exchange FTX has submitted a draft reorganization plan to the courts to pay back creditors. The draft plan, filed with a US bankruptcy court on Monday, calls for scrapping claims based on holdings of the disgraced company’s native token, FTT. The draft says the FTT-based claims against the exchange should be dropped due to the “equity-like characteristics” of its native token. It also calls for canceling any other equity interests. FTX plans to pay back other debtors and customers in cash. The company’s CEO, John J. Ray…