Author Topic: FTX Assets Frozen By Bahamas Regulator, Liquidator Appointed, Arrest Rumored  (Read 532 times)

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Offline Ptarmigan

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Sam Bankman-Fried ran FTX like ‘personal fiefdom’ as firm spent $300M on luxury real estate
https://nypost.com/2022/11/22/sam-bankman-fried-ran-ftx-like-personal-fiefdom-as-firm-spent-300m-on-luxury-real-estate/

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Sam Bankman-Fried treated FTX like a “personal fiefdom,” as he and a handful of associates looted the now-defunct crypto exchange’s coffers to fund an epic spending spree that included a $300 million splurge on Bahamas real estate, lawyers for the company claimed.

FTX’s bankruptcy team detailed the wild spending under 30-year-old Bankman-Fried in a closely watched court hearing on Tuesday — revealing rampant mismanagement by top executives until the platform collapsed with more than $1 billion in client funds missing.

Attorneys said the $300 million spent on real estate was mostly used to buy mansions and beachfront vacation properties for Bankman-Fried and other senior FTX executives.

The purchases went undisclosed during a months-long media blitz in which the scruffy-looking Bankman-Fried, typically dressed in shorts and a T-shirt, portrayed himself as a socially conscious benefactor for Democrats and progressive causes.

Sam Bankman-Fried used FTX as his personal piggy bank. He was donating to leftist causes. He is a robber baron.
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Offline Ptarmigan

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Sam Bankman-Fried Called to FTX Hearing by Texas Securities Regulator
https://www.coindesk.com/policy/2022/11/29/sam-bankman-fried-called-to-ftx-hearing-by-texas-securities-regulator/

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Ex-FTX CEO Sam Bankman-Fried has been called to a Feb. 2 hearing to answer to claims from a Texas regulator that FTX US offered unregistered securities products through its yield-bearing service.

The Texas State Securities Board (TSSB) scheduled the administrative hearing, accusing Bankman-Fried’s company of securities violations in Texas, although the disgraced CEO is no longer running the company he founded, which is now mired in bankruptcy proceedings. The board, which sent a registered letter to Bankman-Fried’s address in the Bahamas informing him of the hearing, suggested the proceedings could be conducted over Zoom.

FTX Capital Markets LLC is registered as a dealer with the board, and “Texans were able to buy and sell publicly traded stock through the firm,” according to the hearing notice that was dated Nov. 22. The state regulator is seeking a cease-and-desist order for FTX to halt securities fraud in the state, to return money to affected investors and to target Bankman-Fried with fines.

Sam Bankman-Fried has to answer to Texas regulators.
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Offline Ptarmigan

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Sam Bankman-Fried Addresses Withdrawals, FTX Collapse in Newly Released Audio Interview
https://www.coindesk.com/business/2022/11/29/sam-bankman-fried-addresses-withdrawals-ftx-collapse-in-newly-released-audio-interview/

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Sam Bankman-Fried’s crypto empire blew up in spectacular fashion at the beginning of this month, and questions continue to swirl around the motives and mechanics that caused crypto exchange FTX and its sister company, Alameda Research, to collapse.

Among the more unprecedented elements of the FTX saga has been the fact that Bankman-Fried, who was raised by two lawyers, can’t seem to keep his mouth shut despite mounting legal threats.

After cryptic tweet threads and a viral DM exchange with a Vox reporter in which he said “f**k regulators” and admitted that his philanthropic identity was largely manufactured for PR reasons, Bankman-Fried’s actual voice is being heard for the first time post-FTX collapse with newly released audio from Tiffany Fong – a crypto investor-turned-whistleblower who initially gained attention for leaking audio that showed Celsius Network, the now-bankrupt crypto lending platform, planned to use a cynical “crypto-based solution” to repay users of its Earn Lending platform.

In a phone call with Fong on Nov. 16 – several days after FTX filed for bankruptcy protection – Bankman-Fried rehashed many of the same defenses and rationalizations for his behavior that he had shared previously in other places to explain what went wrong. In general, Bankman-Fried’s defense was (and continues to be) that he greatly mistook how leveraged he was.

Sam Bankman-Fried is a conman.
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Offline Ptarmigan

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Beto O’Rourke Returned $1 Million Donation From Former Crypto Billionaire Sam Bankman-Fried
https://dailycaller.com/2022/11/29/beto-orourke-returned-1-million-donation-from-former-crypto-billionaire-sam-bankman-fried/

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Beto O’Rourke’s Texas gubernatorial campaign returned a $1 million donation from former crypto billionaire Sam Bankman-Fried four days before election day, according to the Texas Tribune.

The O’Rourke campaign decided to return Bankman-Fried’s donation on Nov. 4 and the decision was reportedly unrelated to the former crypto billionaire’s business scandals, a spokesman told the Texas Tribune. The spokesman said the campaign chose to return the funds because O’Rourke had not talked to Bankman-Fried before the large donation, which was unsolicited and took them by surprise.

Beto out here with more integrity than media outlets that took FTX grant money pic.twitter.com/CnbKJzyD0J

— Stephen L. Miller (@redsteeze) November 29, 2022

During the fundraising cycle spanning July 1 to Sept. 29, Bankman-Fried was the campaign’s top donor with the $1 million contribution, Texas Tribune reported at the time. O’Rourke’s campaign raised $77 million overall and received seven figure sums from three other donors, including Democratic megadonor George Soros, the Tribune noted. At one point, he broke a four month Texas fundraising record, hauling in $27.6 million over four months, his campaign announced in July.

Sam Bankman-Fried donated money to Beto O'Rourke.
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Offline Ptarmigan

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Sam Bankman-Fried says he’s not to blame for FTX collapse: ‘Didn’t ever try to commit fraud’
https://nypost.com/2022/11/30/ftxs-sam-bankman-fried-didnt-ever-try-to-commit-fraud/

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Sam Bankman-Fried, the founder and former CEO of now-bankrupt crypto exchange FTX, attempted to distance himself from suggestion of fraud in his first public appearance since his company’s collapse stunned investors and left creditors facing losses totaling billions of dollars.

Speaking at the New York Times’ Dealbook Summit with Andrew Ross Sorkin at what he said was against the advice of his lawyers, Bankman-Fried said that he did not knowingly commingle customer funds on FTX with funds at his proprietary trading firm, Alameda Research.

The liquidity crunch at FTX came after Bankman-Fried secretly moved $10 billion of FTX customer funds to Alameda Research, Reuters reported, citing two people familiar with the matter. At least $1 billion in customer funds had vanished, the people said.

Bankman-Fried told Reuters the company did not “secretly transfer” but rather misread its “confusing internal labeling.

My BS meter shot up.  :bs:
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Offline Ptarmigan

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Inside FTX’s wild spending: All-expense trips, packages by private jets and free massages
https://nypost.com/2022/11/30/wild-ftx-spending-included-all-expense-trips-and-free-massages/

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FTX executives spent wildly and showered workers with lavish perks such as free food and massages, and Amazon deliveries by private jet in the months before the cryptocurrency site’s catastrophic collapse, according to former employees.

FTX’s headquarters in the Bahamas featured daily catering “in addition to the free groceries, barbershop pop-up and bi-weekly massages,” a former worker told the Financial Times.

Workers also enjoyed a “full suite of cars and gas covered for all employees [and] unlimited, full expense covered trips to any office globally,” the ex-employee added.

Since Amazon does not deliver to the Bahamas, FTX reportedly chartered private planes to fly their orders from Miami to the company headquarters. FTX’s US branch was given $200 per day toward DoorDash food delivery.

Former employees expressed shock over the extent of the spending under FTX’s disgraced founder, Sam Bankman-Fried, who has drawn sharp criticism in bankruptcy court for using the company as his “personal fiefdom.”

Where did all that money go?
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Offline Ptarmigan

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FTX’s Sam Bankman-Fried claims he only has $100K left in bank account
https://nypost.com/2022/11/30/sam-bankman-fried-claims-he-only-has-100000-left-in-his-bank-account/

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The crypto bro has gone crypto broke.

Disgraced FTX founder Sam Bankman-Fried claims he has just $100,000 left in his bank account after the implosion of his cryptocurrency empire.

The remarks Monday marked Bankman-Fried’s first attempt to explain his current personal wealth during intense scrutiny over his handling of FTX’s finances. The firm’s new leaders have condemned Bankman-Fried’s management of the company as they navigate a disastrous bankruptcy. 

“Am I allowed to say a negative number?” Bankman-Fried told Axios regarding his personal finances. “I mean, I have no idea. I don’t know. I had $100,000 in my bank account last I checked.”

“It’s complicated. Basically everything I had was just tied up in the company,” Bankman-Fried added.

More money is socked away somewhere.............
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Allow enemies their space to hate; they will destroy themselves in the process.
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Offline Ptarmigan

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Bankman-Fried’s Money Tied to Major Media Outlets, Bringing ‘Journalistic Integrity’ Into Question
https://www.theepochtimes.com/bankman-frieds-money-tied-to-major-media-outlets-bringing-journalistic-integrity-into-question_4893131.html?utm_source=partner&utm_campaign=BonginoReport

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FTX founder Sam Bankman-Fried gave millions to various media outlets throughout 2022 via his family-run nonprofit, “Building a Stronger Future.” The major companies that received funding include Vox, ProPublica, Semafor, and The Intercept.

In some cases, donations appear to be crucial to the viability of the recipients.

In a leaked letter to staff members, Roger Hodge, editor-in-chief of The Intercept, acknowledged that there was now a “significant hole” in the company’s budget. According to Hodge, the company received $500,000 a few months ago.

“Another $250,000 was due in December, with $3.25 million to follow over the next two years.”

Downplaying the potential conflict of interest, Hodge heaped praise on his reporters in the letter: “I also knew our reporters would never pull their punches because of a donation—and they didn’t.” He adds that The Intercept disclosed Bankman-Fried’s donation in its reporting on the FTX story.

Sam Bankman-Fried donated money to news media. So much for integrity.
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
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Offline Drafe Hoblin

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Has Miami-Dade renamed FTX-Arena yet?

I'd go with the Goosh-Arena.  You know... the sound that a toilet makes when it's flushing.
Watch more television.

Offline Ptarmigan

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Bankman-Fried Discusses Democrat Donations, Relationship With Ukraine, and More
https://www.theepochtimes.com/bankman-fried-discusses-democrat-donations-relationship-with-ukraine-and-more_4895240.html?utm_source=partner&utm_campaign=BonginoReport

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Political Donations
“I donated about the same amount to both parties,” Bankman-Fried told Fong when asked about his political donations.

The crypto exchange founder’s political donations have been widely publicized in recent weeks, with numerous outlets reporting that Bankman-Fried personally donated almost $40 million to Democratic candidates ahead of the 2022 midterm elections, outdone only by Democrat mega-donor George Soros.

“All my Republican donations were dark,” he said, meaning that they weren’t disclosed publicly. “And the reason was not for regulatory reasons; it’s because reporters freak the [expletive] out if you donate to a Republican because they are all super liberal.

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Relationship to Ukraine
“I wish I could’ve pulled that off,” Bankman-Fried joked, referencing a popular internet theory that FTX and Ukraine were colluding to launder humanitarian donations.

In March, FTX and Ukraine partnered to set up a donation platform to facilitate crypto payments to the National Bank of Ukraine.

This partnership catalyzed speculations, which obtained substantial reach, being covered by Fox News anchor Jesse Waters.

:bs:

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Commingling FTX Client Funds
Toward the end of the interview, Fong pressed Bankman-Fried on the misuse of user funds. Various news organizations, including The Wall Street Journal, reported that Bankman-Fried’s crypto investment company Alameda Research had tapped into FTX customer funds to finance reckless trading ventures.

When asked how FTX funds ended up on Alameda’s balance sheet, he stuttered through a lengthy response and eventually answered that it ultimately came down to a “large margin position,” meaning that Alameda was making investments with loaned capital. Pressed to explain further, the former billionaire suggested that appropriating customer funds to margin accounts is “sort of the norm” for derivatives exchanges, implying that Alameda Research was simply fulfilling the role of a very large customer.

Then, referring to the general decline in crypto assets this year, Bankman-Fried noted that a “hyper-correlated crash” diminished the value of Alameda’s collateral and made it impossible to come up with sufficient funds to pay back the loans.

Conman.

Here are the interviews by Tiffany Fong.

Full First Interview With Sam Bankman-Fried
https://www.youtube.com/watch?v=6DezodR9hNI

Second Interview with SBF: FTX User Funds on Alameda, $8 billion hole, CZ, Run on the Bank, Remorse
https://www.youtube.com/watch?v=xP54LZB3WRw

Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du