Home
News
- 1 Sam Bankman-Fried denies being at fault for the FTX crypto fraud.
- 2 Evidence against SBF is still not affirmed making him guilty of FTX collapse.
- 3 A prolonged decrease in crypto market prices rose as Crypto-Winter.
Sam Bankman Fried (SBF), former CEO and founder, of FTX (Foreign Exchange) FTX Collapse has placed his petition against the charges and filed a pre-trial motion to disband them. The United States solicitors had blamed him for the FTX crypto exchange collapse. Chapter 11 bankruptcy protection was filed on FTX on Nov. 11, 2022.
Security and Exchange Commission (SEC), Southern District of New York (SDNY), Commodity Futures Trading Commission (CFTC), and Department of Justice (DOJ) are all on the case discovering evidential firmness for final verdicts on this case.
FTX’s Fall Down: All Accusations on SBF
FTX ‘s fall (FTX Collapse) is known to the world of crypto and its users. Bankman being its founder and CEO is the one blamed in all eyes. Company before its collapse was the 3rd largest crypto exchange in the world but in November 2022, the annulment of Bahamas-based crypto exchange FTX started. The crisis thrust was the FTT and the company’s tokens liquefaction. The victims of this downfall were a million users who were then the FTX user family.
This fall led to a protracted ‘Crypto-Winter’. A longing bear market appeared in the crypto market which meant a decreased price and reduced market capitalization.
FTX, when faced with this havoc, had a worth of $32 billion. Bankman had proved himself over years of FTX’s history. When the market fluctuations led many to fall in the market he stood firm making his place stable; in the market as well as in the standards of his user’s faith. His repo with the nooks and corners of the market seemed serene.
The spree of the last few days after the company’s collapse his and his company’s shattering eminence changed everything. The company that he founded in May 2019 and grew in the market now was a 0. He had a burden of debt to those who had invested in his company. Now it just seems to be a bad business for all those who are suffering from this fall.
No escape could save and restrict it from happening. Bankman was the founder of Alameda Research (hedge fund) and to barricade it, he lost around $8 billion of investors’ funds as the reports say.
John J. Ray was appointed the CEO of FTX after its fall. Ray is an American attorney and CEO who is trained in recuperating funds from crashed corporations. Ray says, within an experience of 40 years he hasn’t witnessed such a fiasco. The company lost all its command and control with no reliable financial data. Ray has already resided in the liquidation of Enron Corpus in 2004.
Continuously dodging his words and escaping the blame for FTX’s downfall, Bankman has blamed his Alameda mate, Caroline Ellison. Adding to his words he said it’s all the poor risk management factors that have resulted in this situation and that he is not the one to be loaded with all the criticism.
Bankman’s conversation with Ray implied that at no cost Bankman is accepting the accusations against him. He proclaims to be unaware of any such thing happening. Saying about unawareness Bankman told this isn’t the end, but what has happened has led the customers, venture capitalists, investors, Wall Street, and everybody else undifferentiated.
SBF is at the stake of civil and criminal charges along with private litigations from several investors who lost their earnings. Gary Gensler, Chairman, SEC met SBF and FTX executives in 2022 spring and has publicly elaborated about many crypto tokens being securities which would make his agency the primary regulator. But many exchanges, including FTX, (FTX Collapse) have crypto derivatives platforms that sell financial products like futures and options, which come under the jurisdiction of CFTC.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
