In a recent financial statement filing with the U.S. Bankruptcy Court, it has been revealed that Alameda Research paid or loaned $3.2 billion to FTX founders and executives.

Finance Times reported on the 16th that among the recipients, Sam Bankman-Fried received $2.2 billion, Nishad Singh received $587 million, Gary Wang received $246 million, and Caroline Ellison received approximately $6 million. It’s important to note that this money doesn’t include the $240 million used to purchase a luxury resort in the Bahamas, political contributions or donations made directly by FTX management, or assets transferred to subsidiaries in the Bahamas and elsewhere.

The revelation has raised eyebrows and left many wondering about the reasons behind the transfer of such a large sum of money. FTX creditors are investigating the matter and are looking into the recipients and the reasons for the transfer of the funds.

It’s worth mentioning that some of the real estate purchased with the transferred assets is already under the control of FTX creditors or government authorities working with them. However, the amount and timing of final recovery are currently unknown.

Following the Chapter 11 bankruptcy filings in November, FTX’s newly appointed chief executive, John Ray, has been actively searching for the whereabouts of cryptocurrency and other assets that can be used to reimburse the millions of customers affected by FTX’s collapse.

The news is significant and could have implications for the cryptocurrency market, as FTX is a major player in the industry. Investors and stakeholders are closely watching developments in this story, and any further revelations could have a significant impact on FTX’s reputation and future prospects.

As a reporter, it’s important to keep an eye on this developing story and provide regular updates as more information becomes available. The cryptocurrency market is rapidly evolving, and stories like this remind us of the need for transparency and accountability in the industry.

#FTX #FTXcollapse #FTXUpdate #FTXScandal #Binance

This article was republished from azcoinnews.com

According to a report by Semafor, former FTX founder Sam Bankman-Fried (SBF) has been asked by U.S. federal prosecutors to return political donations made to lawmakers.

This notice was issued in February by the U.S. District Attorney for the Southern District of New York, which stated that the donations made to lawmakers represented SBF’s proceeds of crime, and hence could be recovered under federal asset forfeiture laws. The directive is for the recipient to return the donations to the U.S. law enforcement agencies, not to FTX.

The prosecutors are planning to use any funds confiscated to compensate victims of crimes related to the SBF case. The U.S. government is also negotiating with bankrupt FTX in this regard.

Earlier, FTX had sent a confidential letter to U.S. politicians, asking them to return their donations by February 28. At least two members of Congress received the letter, as confirmed by Semafor.

Semafor also revealed that SBF is an investor in Semaphore and that the company is planning to purchase his stake. The case involving SBF is gaining momentum, and the developments around the recovery of the proceeds of crime are being closely watched.

#SBF #Sam #FTX #FTXcollapse #azcoinnews

This article was republished from azcoinnews.com

Once a prominent player in the field of cryptocurrency exchanges, FTX's sudden downfall has sent shockwaves throughout the digital asset community. The series of unfortunate events surrounding FTX unfolded within a 10-day period in November 2022, drastically altering its economic landscape.

The Start of the Downfall

The grim fate of was initially unveiled by CoinDesk's scoop on November 2, marking the commencement of a string of escalating events. The critical revelation centered around Alameda, embarking on a trajectory that led to FTX's inevitable collapse.

Leadership's Part in the Crisis

FTX's downfall took a stark turn when Sam Bankman-Fried, its chief executive, abruptly resigned on November 11. Soon after, FTX and its associated companies filed for Chapter 11 bankruptcy marking a defining timemark in the downward spiral. Bankman-Fried's exit further intensified the crisis, leaving the market and its investors in uncertainty.

Hacking: The Final Blow

FTX's situation significantly worsened when it reported around $415m (£338m) worth of crypto assets were stolen by hackers, with about $323m hacked directly from its platform. The hacking incident, reported on January 18, 2023, not only exemplified its technical vulnerabilities but also laid bare the security risks confronting cryptocurrency exchanges.

Toward an Uncertain Future

Following the dramatic events, Sam Bankman-Fried was indicted, with images emerging of him exiting the United States Court in New York City. The founder's legal predicaments added a new dimension to FTX's already troublesome saga, leaving its future hanging in the balance.

The collapse of FTX stands as a stark cautionary tale in the world of cryptocurrency exchanges. The swift and unexpected downfall underscores the inherent risks surrounding digital assets, particularly highlighting the crucial role effective leadership and robust security systems play. As stakeholders navigate the aftermath of the crisis, FTX's story will undoubtedly continue to shape discussions about risk, regulation, and resilience in the evolving world of cryptocurrency.

#FTXcollapse #FTXUpdate

FTX Trading Ltd. has released its first report detailing the reasons for its failure, including control failures by the previous management team in critical areas. The report identifies the lack of appropriate controls in areas that were critical for safeguarding cash and crypto assets, including management and governance, finance and accounting, digital asset management, information security, and cybersecurity. The report also stated that FTX was tightly controlled by a small group of individuals who failed to implement oversight or implement an appropriate control framework.

The report is based on the review of terabytes of electronic data and communications, more than one million documents, and interviews conducted with 19 former FTX Group employees, among other information. The team of experts from various fields, including legal, restructuring, forensic accounting, cybersecurity, computer engineering, cryptography, and blockchain, conducted the review.

According to the report, the reasons for the failure of FTX included SBF’s final say in all major decisions, core personnel’s lack of risk management and operation experience shortly after graduating from university, Singh’s change to the code base on July 31, 2019, to allow Alameda to withdraw unlimited amounts of crypto assets from FTX, and a week later, modifying it to exempt Alameda from automatic liquidation. Additionally, the FTX group kept almost all crypto assets in hot wallets, and SBF lied about using cold wallets.

Currently, creditors have obtained more than $1.4 billion in digital assets and have identified another $1.7 billion in digital assets and are in the process of recovery. FTX’s total liabilities are approximately $12 billion.

John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, said that the Debtors are releasing the report in the spirit of transparency that they promised since the beginning of the Chapter 11 process. The review is ongoing, and the report is expected to be the first in a series regarding pre-petition events and issues that preceded the Chapter 11 cases.

FTX’s release of this report is an important step in the Chapter 11 process and provides creditors with a better understanding of the reasons for the company’s failure. The ongoing review will likely shed more light on the events that led to FTX’s downfall and help creditors recover as much value as possible.

#FTX #FTXcollapse #crypto2023 #BTC #azcoinnews

This article was republished from azcoinnewsc.om