Though Sam Bankman-Fried was lastly arrested, the FTX founder continues to make headlines.
Crypto Twitter now believes it’s odd timing that the SBF was arrested by Bahamian authorities the day earlier than a listening to within the US Congress.
Bankman-Fried is reportedly in custody pending extradition to the US. Consequently, Bankman-Fried will be unable to testify earlier than the US Home Monetary Providers Committee.
As an alternative, new FTX CEO John Ray will substitute his predecessor. However surprisingly, SBF had already ready right this moment’s speech. Forbes was capable of pay money for the doc.
Bankman-Fried going into assault mode
The doc exhibits that Bankman-Fried needed to enter assault mode after regretting his efforts to introduce himself and save his consumer’s cash.
Amongst different issues, he needed to reiterate that FTX US was “totally solvent” although it was included within the chapter submitting.
“I want I hadn’t clicked the Docusign button at 4:30 am and put a few of FTX beneath damaging management,” Bankman-Fried wrote.
Apparently, his plan was responsible others. His first sufferer was John Ray, whom Bankman Freed claims to have contacted a number of occasions to supply necessary data.
Ray reportedly by no means responded and finally took accountability for the destiny of his U.S. prospects. The SBF was to testify.
Binance feud continues
Naturally, Bankman-Fried needed to entertain Binance CEO Changpeng Zhao. Referring to CZ’s notorious tweet that supposedly triggered the financial institution run on FTX, SBF wrote that Binance was concerned in “a month of sustained unfavorable PR on FTX.” improve.
Moreover, Binance’s takeover supply was purely a tactic to push FTX off a cliff, he says. Whereas FTX was scouting for choices, Bankman-Fried signed an acquisition settlement that prevented it from pitching to different potential buyers.
“Within the meantime, we have now obtained critical expressions of curiosity from a number of potential buyers representing billions of {dollars} of capital that could be provided to our purchasers. ,” writes Bankman-Fried.
another person’s fault
However Bankman-Fried additionally deliberate to carry Sullivan Cromwell, an American multinational regulation agency headquartered in New York Metropolis, closely accountable for the occasions that adopted the collapse of FTX.
They’re mentioned to have “pressured” him into submitting for Chapter 11 expeditiously. In his testimony, Bankman-Fried accuses the regulation agency and his Ray of getting egocentric monetary motives.
The regulation agency, which additionally represents Enron, “was paid roughly $700 million (!!!) in charges out of funds that may in any other case be paid to collectors,” SBF needed to testify.
Moreover, FTX US basic counsel Ryne Miller allegedly conspired with Sullivan Cromwell to file Chapter 11 for monetary acquire. In response to Bankman-Fried’s request to maintain his FTX lively, Miller reportedly mentioned, “Nothing can save Sam.”
Assertion of John Ray
In the meantime, new FTX CEO John Ray’s ready testimony at right this moment’s listening to paints a special image. Ray testifies that consumer funds from FTX had been blended with funds from his Alameda buying and selling platform.
As well as, Alameda used consumer funds for margin buying and selling, exposing consumer funds to very large losses. His new FTX CEO additionally outlines that FTX Group has made a ton of acquisitions from his late 2021 via his 2022.
As a part of that, about $5 billion was spent on numerous companies and investments, lots of which at the moment are value solely a fraction of what was paid.
Different explosive statements embody insider loans and different funds totaling over $1 billion, storage of personal keys with out efficient safety controls, and entry to methods the place buyer funds are saved. Consists of pc infrastructure that permits administrative entry.
BTC worth surges forward of CPI launch and Bankman-Fried/FTX hearings.
