Follow Us

SBF Denies Moving Funds From Alameda: Tweets from Parent’s Basement. 

Share on facebook
Share on twitter
Share on linkedin

Share

SBF
Share on facebook
Share on twitter
Share on linkedin
  • Right after SBF’s bail, Alameda’s accounts became active. 
  • FTX owes nearly $3.1 billion to 50 creditors. 
  • Sam denied any involvement, citing a lack of access to said funds. 

Sam Bankman-Fried, the former white knight of the crypto industry, is facing a battery of financial charges with his connection to the FTX collapse and misuse of users’ funds for personal gains. It is too early to say exactly what happened and how this massive deceit occurred, but it will all be clear after the trial. According to the media reports, Alameda wallets became active just days after SBF was granted bail on a $250 million bond, and now he is accused of moving funds and token swaps from Alameda Research wallets. 

Sam denied these rumors saying, “None of these are me.” His statement comes in response to a media report that brought the transfers involving people with connections to Alameda to light. Bankman also claimed that he did not have access in the first place.

The FTX saga has caused billions of investors and debtors to have their funds stuck. Per documents filed on December 28, 2022, a group of FTX customers who were not US citizens made an anonymous request for confidentiality to Lewis Kaplan in the insolvency case involving the company. 

Fifteen creditors claimed that FTX owes them a total of $1.9 billion on the condition of not being named, as anonymity is crucial for most people. Honoring their request, Judge Dorsey had ordered that major FTX creditors’ identities be kept secret.

The filing also highlights the difficulty in monitoring cryptocurrency compared to traditional finance, as they are more secure than cryptocurrency transactions. 

Some estimates suggest that FTX owes its top 50 creditors a sum of approx $3.1 billion. And if in case identities are made public, this could be a breach of private information. 

Prosecutors in the case blame poor management, not the outright theft, for the FTX collapse. 

Investigations show that Sam, without investors’ knowledge, allegedly combined the investment kept in FTX with that of Alameda Research. 

What does the new FTX CEO have to say?

Insolvency expert John J. Ray III, who had previously worked on cases like Enron, claims that FTX mismanagement is rampant throughout the hierarchy. Employees use common programs like QuickBooks and Slack to manage multibillion-dollar finances ironically after the company had just come out of insolvency. 

Per John Ray, the company’s failure was due to, 

“A limited number of inadequately trained and unskilled people.”

It can be believed that the multi-billion-dollar exchange, FTX, was operated without proper working ethics. This mismanagement of manpower, apparently caused financial losses within the company, and to curb those losses users funds were involved. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Download our App for getting faster updates at your fingertips.

en_badge_web_generic.b07819ff-300x116-1

We Recommend

Top Rated Cryptocurrency Exchange

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00