Sam Bankman-Fried Appeals Conviction: Sam Bankman-Fried, founder of #FTX. has filed for a new trial, claiming he was denied a fair hearing during his initial fraud conviction.
Claim of Media Focus by Prosecutors: His legal team argues that federal prosecutors were more focused on securing quick headlines rather than ensuring justice during his trial.
Conviction and Sentence: Bankman-Fried was convicted of fraud and money laundering related to the collapse of FTX, leading to a 25-year prison sentence.
FTX Collapse: FTX, once a major #cryptocurrencyexchange , collapsed in 2022, causing billions in customer losses. Prosecutors accused Bankman-Fried of diverting funds to cover financial shortfalls in his hedge fund, #AlamedaResearch .
Allegations of Unfair Narrative: #SamBankman-Fried legal team argues the narrative presented at trial was inaccurate and new evidence shows FTX was not insolvent, with sufficient assets to repay customers.
Sullivan & Cromwell (S&C) Involvement: The filing criticizes the role of the law firm Sullivan & Cromwell, accusing them of bias and over-involvement in prosecutorial work for financial gain.
Caroline Ellison’s Legal Situation: Caroline Ellison, former CEO of Alameda Research, is seeking leniency, with her legal team advocating for time served due to her cooperation with authorities.

The #crypto business of #FTX CEO Sam Bankman-Fried had a $6.8 billion deficit on its balance sheet when it filed for #bankruptcy in November 2021, based to a recent filing with the bankruptcy court.

The presentation revealed that FTX.com, the company's flagship, had a $10.6 billion loss while FTX.US had a $87 million one. But FTX Ventures had net assets of $1.3 billion and #AlamedaResearch had net assets of $2.6 billion, respectively, respectively. A total of $11.6 billion in debt, primarily in the form of consumer claims, was owed by the group of businesses.

These statements have not been audited and may change, the advisers have advised. Recent legal and regulatory concerns for Bankman-Fried's firms have included inquiries into alleged market manipulation and unregistered securities offerings. It was believed that FTX was overextending itself because of its activities' rapid expansion, which included sponsoring important sports teams and leagues.

The company's risk management and financial controls are expected to come under scrutiny in light of the announcement of the balance sheet deficiency. FTX is not the only company in the crypto sector experiencing financial issues; in recent years, a number of well-known companies have collapsed or been declared bankrupt. Authorities are growing increasingly worried about the potential threats posed by these enterprises, thus the bankruptcy filing is expected to have a big impact on the #cryptocurrency industry and its regulation. Due to increased industry attention and regulation following the demise of FTX, there may be more restrictions placed on the operations of crypto businesses.

The Ongoing Asset Recovery by FTX and Alameda Research
Wallets linked to the now-defunct crypto trading firms FTX and Alameda Research have been actively moving substantial amounts of cryptocurrencies to various accounts in major exchanges like Binance, Coinbase, and Wintermute. Blockchain analysis firm Spot On Chain reported these movements, highlighting the scale and diversity of assets being transferred.

Details of the Recent Cryptocurrency Transfers
The most recent transfer involved $10.8 million spread across eight different cryptocurrencies. The breakdown of this transfer includes $2.58 million in StepN (GMT), $2.41 million in Uniswap (UNI), $2.25 million in Synapse (SYN), $1.64 million in Klaytn (KLAY), $1.18 million in Fantom (FTM), and $644,000 in Shiba Inu (SHIB), along with smaller amounts of Arbitrum (ARB) and Optimism (OP). This movement reflects the ongoing efforts by FTX and Alameda Research to manage their assets amid the fallout of their operations.
Tracing the Timeline of Transfers
The process of transferring these funds began in earnest on October 24, when FTX and Alameda wallets moved $10 million to a single wallet address. This was subsequently redistributed to accounts at Binance and Coinbase. A similar transaction took place on November 1, involving $13.1 million transferred to the same exchanges.
Substantial Movements Since March 2023
The movement of funds dates back to March 2023, when FTX and Alameda initiated the asset recovery process for their investors. At that time, three wallets associated with the firms moved $145 million in stablecoins to various platforms, including Coinbase, Binance, and Kraken. Of this amount, $69.64 million in Tether (USDT) and 75.94 million USD Coin (USDC) were transferred to custodial wallets on these exchanges.
Assessing the Financial State of FTX and Alameda Research
Despite having recovered over $5 billion in cash and liquid cryptocurrencies, the liabilities of the troubled cryptocurrency exchange exceeded $8.8 billion. This ongoing asset movement is part of a broader effort to manage the fallout of their operational crisis and fulfill obligations to stakeholders.
In summary, FTX and Alameda Research’s recent transfer of $10.8 million in various cryptocurrencies to major exchanges represents a continued effort in their asset recovery process. This activity, part of a larger series of transfers totaling $551 million since October 24, highlights the intricate process of managing and redistributing assets following the collapse of major players in the cryptocurrency industry.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#FTXUpdate #AlamedaResearch $FTT

CryptosHeadlines.com - The Leading Crypto Research Network

Clemente suggests Alameda Research’s collapse might be linked to the Terra incident in May 2022, based on their FTX balance history. He speculates it could be due to high leverage or risky transactions for FTX.

A crypto expert named Will Clemente believes that Alameda Research, which is connected to the cryptocurrency exchange FTX, faced serious financial trouble starting in May 2022. This was when the Terra Luna ecosystem had big problems.

Clemente reached this conclusion by looking at the financial history of Alameda Research on FTX. He’s known for analyzing cryptocurrencies and runs a company called Reflexivity Research that investigates digital assets. According to him, the issues Alameda Research faced may have started when the Terra Luna ecosystem had its troubles back in May 2022.

LUNA (LUNC) Dealt Fatal Blow to Alameda

Before the Omnibus Hearing on September 13, Will Clemente reviewed a government exhibit that showed Alameda’s financial history on FTX. He noticed that Alameda’s balance went up to $12 billion in less than two months, but he believes the real problem for Alameda was LUNA.

When the Terra ecosystem had problems, it caused the prices of Bitcoin and other cryptocurrencies like Ethereum to drop, which marked the beginning of a tough period for investors. This happened after the Terra stablecoin and its support coin, LUNA, became unstable. The crises involving LUNA and FTX were some of the most challenging situations the cryptocurrency industry has faced this year.

A report from Nansen, a company that studies blockchain, suggests that the collapse of the FTX exchange and its related company Alameda Research was linked to the fall of the Terra/LUNA stablecoin. According to the report, FTX might have been in trouble right from the moment the Terra/LUNA stablecoin system, which had two tokens, failed to keep a steady value.

It’s important to note that during this collapse, around $48 billion in value was lost, leading to many companies going bankrupt because they had taken on too much risk.

While some reports blamed FTX and Alameda for making bad decisions, the Nansen report has a different view. It believes the collapse happened because of “malfeasance,” which means dishonest or illegal behavior, rather than just poor management.

How the FTX and Alameda Collapse Affected Others

When it became known that there were around $5 billion worth of FTT tokens, which made up most of Alameda’s assets, people who held these tokens started selling them quickly. This caused a big rush to take the tokens out of the FTX exchange.

The situation got worse when the CEO of Binance, Changpeng Zhao (known as CZ), hinted that Binance, the largest exchange by trading volume, might sell its $584 million worth of FTT tokens. This caused even more panic.

FTT tokens had very few available for buying and selling, so even small sales could make the price drop a lot. What made things worse was that FTX had control over 80% of the FTT tokens, which was more than usual.

Both Alameda and FTX had a lot of FTT tokens, and they were closely connected. When one started selling, it affected the other’s financial situation.

After the Terra/LUNA crash, FTX secretly lent billions of dollars from its customers to Alameda. This was described as “commingling.” The report from Nansen supports the idea that there were huge losses, making it a possible explanation for the Terra crisis. This is because FTT tokens were used as collateral, but they couldn’t be easily sold, causing FTX to stop people from taking out their money.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptoNews #cryptomarket #AlamedaResearch #LUNA #FTX

Ren Protocol, one of the most popular decentralized finance (DeFi) protocols, has announced that all of its assets and shares will be transferred to cold wallets controlled by FTX Trading, a beleaguered crypto company. This decision was made in advance of possible shutdowns of infrastructure and systems, according to a tweet from Ren on April 12.

FTX had previously directed the protocol to transfer all assets to debtor wallets for safeguarding, and Ren claims that these assets will be held on separate, segregated cryptocurrency wallets that are different from those used for other debtors. Ren Protocol allowed users to transfer tokens such as bitcoin (BTC), ether (ETH), and dogecoin (DOGE) among different blockchains, becoming one of the most popular DeFi protocols during the 2021 bull run.

The protocol was acquired by Alameda Research, the trading company controlled by alleged fraudster Sam Bankman-Fried, in February 2022. This acquisition marked the beginning of the end for Ren. In November of the same year, Ren Protocol stated that it was impacted by FTX Group’s Chapter 11 proceedings and had no funding to last beyond 2022 for the previous version of its service.

At the time, Ren said that it would try to “secure additional funding” to ensure the development and release of ‘Ren 2.0,’ which would remain completely independent of any ties to FTX. However, it appears that this was not possible, and the decision to transfer all assets and shares to FTX’s cold wallets was made instead.

The move has been met with mixed reactions from the crypto community, with some expressing concerns over the security of their assets and others questioning FTX’s ability to manage such a large amount of assets. Ren Protocol has assured its users that the assets will be held in separate, segregated wallets to ensure their safety.

As of now, it remains to be seen what will happen to Ren Protocol and its users. The transfer of assets to FTX’s cold wallets is a significant development, and it remains to be seen how this will impact the DeFi space as a whole.

#Ren #RenBTC #FTX #AlamedaResearch #azcoinnews

This article was republished from azcoinnews.com