Tag: FTX

FTX Attorney Reveals SBF Ordered Co-Founder to Open $65B Secret Line of Credit for Alameda Research

The CFTC claimed that the FTX co-founder created a “virtually unlimited” secret line of credit” for Alameda.  FTX attorney Andrew Dietderich has dropped a bombshell testimony that Sam Bankman-Fried ordered co-founder Gary Wang to open a credit line for Alameda Research. Alameda Research is the crypto exchange’s crypto company, which was at the center of the unfortunate crash last year. The incident resulted in FTX, Alameda Research, and about 130 subsidiaries filing bankruptcy in the US due to a “liquidity crunch.” Report: FTX Opened Credit Line for Alameda Research According to the New…

Scaramucci to invest in crypto firm founded by former FTX US boss

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SkyBridge Capital founder Anthony Scaramucci is investing in a crypto company founded by the former president of FTX US. According to an email to Bloomberg, Scaramucci said he would be investing his own personal funds to support ex-FTX US president Brett Harrison’s new venture, which became known just three weeks after the collapse of crypto exchange FTX. It is understood that the crypto software company — which doesn’t yet have a name — will enable crypto traders to create algorithmic-based strategies to access different markets — both centralized and decentralized. It…

Former President of FTX US Shares His Experience and Relationship With CEO Sam Bankman-Fried in Detailed Twitter Thread – Bitcoin News

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The former president of FTX US, Brett Harrison, published a 49-part Twitter thread explaining why he left the firm and his relationship with co-founder Sam Bankman-Fried (SBF) of FTX. Before his role at FTX US, Harrison worked with SBF at Jane Street and prior to joining FTX, he worked for Citadel Securities. In the Twitter thread, the former president of the U.S. subsidiary explained that his “relationship with Sam Bankman-Fried and his deputies had reached a point of total deterioration, after months of disputes over management practices at FTX.” Brett…

Former FTX US President lashes out at ‘insecure’ SBF in 49-part Twitter thread rant

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Former FTX US President Brett Harrison has lashed out at Sam Bankman-Fried for manipulating and threatening colleagues who proposed solutions to reorganize FTX US’ management structure.  Harrison shared his experiences with Bankman-Fried and FTX US on Dec. 14, explaining how he was hired “casually over text” in Mar. 2021 after working together at New York-based trading firm Jane Street for a few years. But six months into Harrison’s tenure at FTX US, “cracks began to form” between the two, he said. Despite recalling Bankman-Fried to be a “sensitive and intellectually…

SBF denies stealing FTX assets, SEC charges Gemini and Genesis, and more: Hodler’s Digest: Jan. 8-14

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Top Stories This Week Sam Bankman-Fried: ‘I didn’t steal funds, and I certainly didn’t stash billions away.’ In a “pre-mortem overview” of FTX’s bankruptcy, Sam Bankman-Fried denied allegations of improper use of customer funds stored with the crypto exchange, attributing responsibility for the company’s dramatic fall to the market crash of 2022 and Binance CEO Changpeng Zhao’s PR campaign against FTX. In Bankman-Fried’s view, a run on the bank turned illiquidity issues into insolvency. Among the latest developments in the bankruptcy proceedings, a bipartisan group of United States senators criticized…

Alameda Research had a $65B secret line of credit with FTX: Report

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Former FTX CEO Sam Bankman-Fried (SBF) reportedly ordered Gary Wang, co-founder of the crypto exchange, to open a $65 billion “secret backdoor line of credit” for Alameda Research, according to FTX attorney Andrew Dietderich.  The attorney disclosed the information during a Delaware bankruptcy court hearing on Jan. 11, the New York Post reported. The alleged line of credit was financed with FTX customers’ funds. As per Dietderich testimony, the “backdoor was a secret way for Alameda to borrow from customers on the exchange without permission.” “Mr. Wang created this backdoor…

Bitmex Co-Founder Criticizes Former FTX CEO for Not Liquidating Hedge Fund Alameda – Bitcoin News

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The Bitmex co-founder, Arthur Hayes, criticized Sam Bankman-Fried, the disgraced FTX co-founder, on Friday after Bankman-Fried published his first blog post on his new Substack newsletter. “All this talk about what Alameda did is misdirection,” Hayes insisted. “It doesn’t matter how they hedged or didn’t hedge, or what dogsh** was in their portfolio.” Bitmex Co-Founder Accuses Former FTX CEO of Avoiding Transparency Arthur Hayes, co-founder of the cryptocurrency derivatives platform Bitmex, criticized Sam Bankman-Fried, former CEO of FTX, following a recent blog post. In the blog post, Bankman-Fried said “Alameda…

Skybridge eyes stake buyback from FTX, as Galaxy CEO says he would like to ‘punch’ SBF

SkyBridge Capital CEO Anthony Scaramucci said that his firm can buy back the stake of the company it sold to FTX back in September last year. While Galaxy Digital CEO Mike Novogratz has indicated that he would be tempted to “punch” SBF right in the jaw. SkyBridge and FTX FTX Ventures acquired a 30% stake in the alternative asset manager SkyBridge for an undisclosed fee on Sept. 9, just a couple of months before FTX filed for bankruptcy in November. Speaking to CNBC on Jan. 13, Scaramuci noted that in…

Disgraced FTX Co-Founder Awaits Trial, Passes Time Playing Video Games and Blogging on His New Substack Newsletter – Bitcoin News

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The former CEO of FTX, Sam Bankman-Fried (SBF), has published a Substack newsletter on Jan. 12, 2023, and the first post is titled “FTX Pre-Mortem Overview.” In the post, SBF maintains that an “extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.” The blog post does not mention the allegations made by his former co-workers, ex-Alameda CEO Caroline Ellison and FTX co-founder Gary Wang. The disgraced former FTX executive also conducted a one-on-one interview at his home in Palo Alto with Puck News reporter Theodore Schleifer.…

There Will Be No Lessons Learned From FTX

So, we’re now in a less than ideal situation. Bad actors are undeterred by the lack of regulation, but good actors are. The result: Bad actors face far less competition. It’s not, thankfully, zero competition. There are quite a lot of good actors in this space, but due to absent regulatory clarity and standards even those players are having a hard time differentiating themselves from the bad guys. Every bad actor claims they’re audited, professionally run and take compliance seriously, and few end-users know enough to tell the truth from…