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A UK government inquiry into an FTX -backed charity that received $26.8 million in donations, has concluded that its trustees acted ‘quickly’ and ‘ diligently ’ protecting the charity ’s funds in the wake of the crypto exchange’s high-profile collapse . In 2022, Effective Ventures Foundation (EV) filed a Serious Incident Report with the Charity Commission, informing it that FTX, one of the charity’s major funders, had filed for bankruptcy amid reports of criminal activity. It also informed the commission that the CEO of FTX Foundation and an unpaid advisor to the FTX Future Fund made up two of EV’s trustees. The commission subsequently launched a probe to determine ‘the extent of any risk to the charity’s assets and the extent to which the trustees were complying with their legal duties’ and to investigate ‘the governance and administration of the charity by the trustees, including relationships between the charity’s trustees and its funders and the identif...

While some celebrated the 25-year sentence handed down to multi-billion dollar fraudster Sam Bankman-Fried, others suggested it was too harsh a punishment for a non-violent first-time offender. Whatever your view, it’s safe to say there was a collective sigh of relief from almost everyone involved when the crypto trial of the century came to a close. However, the sentence comes with some caveats and opportunities and it’s worth diving into exactly what we can expect to happen next. Appeals SBF has already made it clear that he doesn’t only believe the appeals process will grant him his freedom — he’s willing to stake his comfort and safety on it. As pointed out by Protos contributor David Z. Morris on X (formerly Twitter), SBF put forward a request to stay at New York’s infamous Metropolitan Detention Center to be closer to his legal team rather than being transferred to a prison to be nearer to his parents in California. The strategy is a bold one: less than 9% of ap...

The debtors-in-possession of FTX and Alameda Research have reportedly been responsible for the bulk of outflows from Grayscale Bitcoin Trust ( GBTC ), with sources familiar to CoinDesk detailing that FTX sold approximately 22 million shares. This would account for around $1 billion in the total outflows from GBTC so far and would account for the entirety of FTX/Alameda Research’s GBTC position. Alameda Research was one of several now-bankrupt trading firms, including Three Arrows Capital, that attempted to arbitrage the difference between the GBTC market value and the value of the assets it holds. The difficulty in successfully arbitraging this difference while Grayscale’s redemption window was closed may have contributed to the failure of some of these firms. FTX debtors-in-possession also chose to dismiss their lawsuit against Grayscale. According to Arkham data, at 22:21 UTC+8, Grayscale transferred 19,260 BTC to Coinbase Prime Deposit. https://t.co/79xyMqJylW ...

Sam Bankman-Fried’s parents have filed a motion to dismiss FTX’s lawsuit , denying involvement in the exchange’s downfall. Months after the dramatic implosion of crypto exchange FTX, Joseph Bankman and Barbara Fried are embroiled in a legal battle, facing accusations of complicity in their son’s alleged financial misdeeds. In September 2023, FTX, now under new management, initiated a lawsuit against the FTX founder’s parents , alleging their involvement in widespread financial misconduct at the company. Central to FTX’s claim is the pursuit of millions of dollars they allege were misappropriated by the couple, including a $10 million gift to Joseph Bankman. However, the defense mounted by Bankman and Fried’s legal team has labeled the lawsuit as “threadbare,” basing their argument on the fact that their involvement is assumed purely because of their relation to their son. The primary defense hinges on the assertion that neither had official roles wi...

Former FTX executives, including a witness against Sam Bankman-Fried, have launch ed a new crypto platform called Backpack that pledges transparency. According to the Wall Street Journal report, Can Sun, the former general counsel for FTX and a key witness in the trial of founder Bankman-Fried, is behind the new venture. A beta version of Backpack is expected to launch soon. A group of former FTX executives, including one who served as a key witness against Sam Bankman-Fried, are teaming up to build a new cryptocurrency exchange that aims to solve the problems that doomed their previous employer https://t.co/ZpsHtyHW4X https://t.co/ZpsHtyHW4X — The Wall Street Journal (@WSJ) November 11, 2023 The project will be operated by Dubai-based startup Trek Labs. It also plans to introduce a more secure and transparent trading model, leveraging lessons learned from the collapse of FTX. The platform is centered around “self-custody” wallets using multiparty computation ...

Former NYSE President’s firm competes with two others to acquire and relaunch FTX. According to reports from the Wall Street Journal, Tom Farley, previous head of the New York Stock Exchange, is among the top three bidders likely to purchase FTX and potentially relaunch the bankrupt exchange. This development could signal potential new beginnings for the troubled cryptocurrency firm. Alongside Farley’s enterprise, two other contenders are in the race: the innovative fintech company Figure Technologies and the specialist crypto investment entity Proof Group. The trio is in the final round to acquire and potentially revive FTX.  Near $500M in the voting block. December 16 is close. Equity? Anthropic? Join. https://t.co/IIqEW9AOb6 https://t.co/LLsekGOnEE — FTX 2.0 Coalition (@AFTXcreditor) November 6, 2023 Insiders report that over 70 expressions of interest were streamlined to the final three entities, although their identities were not disclosed in last mont...

Following Sam Bankman-Fried’s guilty verdict last week, FTX investors call for actions against celebrity endorsers. The conviction of Sam Bankman-Fried has marked a pivotal point in the FTX saga, but it might be far from over. The aftermath of the case is set to cast long shadows, with a notable shift in focus toward the high-profile figures and celebrities who once endorsed the platform. Public attention will now be on the class-action lawsuit that emerged from the investors’ quarters in 2022, targeting not just Bankman-Fried’s immediate affiliates but also casting a wide net to include celebrities and professional services firms. Since Bankman-Fried’s guilty verdict, investors and users have increasingly been posting on social media to hold key celebrities accountable for this historic fraud.  Republicans took money from Sam Bankman Fried too. Especially @SpeakerMcCarthy. McCarthy belongs in a jail cell with Sam Bankman Fried. McCarthy used FTX il legal ly as a...

SOL price has started to cool off as investors potentially question the reasons for the most recent double-digit rally. Solana (SOL) experienced a notable 36.6% increase in value between Oct. 30 and Nov. 2. However, SOL’s failure to breach the $44.50 mark resulted in a 10% correction down to $40 on Nov. 6. This movement has left many investors pondering whether the ecosystem growth and network activity support Solana’s present $16.9 billion market capitalization. Solana's peak at $44.50 on Nov. 2 was the highest it had reached since August 2022, and coincided with the Solana Breakpoint 2023 global conference held in Amsterdam. The price hype during this period even prompted BitMEX co-founder Arthur Hayes to admit to being a "degen" and invest in SOL, despite referring to the token as "just a meme." During the Breakpoint conference, the Solana Foundation unveiled the testnet launch of Firedancer, a new client aimed at enhancing speed, reliability, and reducing...

In November 2022, Marc-Antoine Julliard, a cocoa broker based in London, found himself in the spotlight as he fielded questions from prosecutors regarding his cryptocurrency holdings on FTX . This development unfolded in the ongoing criminal case against Sam Bankman -Fried, the former CEO of FTX , who is also known as SBF. The prosecuting attorneys have embarked on the journey of summoning witnesses to the stand. A riveting thread posted on October 4th by Inner City Press (formerly Twitter) shed light on the proceedings. In this thread, it was revealed that assistant United States attorneys presented a compelling testimony from Marc-Antoine Julliard, the aforementioned cocoa broker who had ventured into crypto trading through FTX. Julliard’s narrative unfolded as he recounted how he stumbled upon the crypto exchange through a friend, enticed by the alluring advertisements featuring Gisele Bündchen. He candidly shared his experience of utilizing the FTX mobile app for trading va...

The recent surge in Anthropic’s valuation, following a new funding round, could spell financial recovery for FTX creditors. As artificial intelligence enterprise Anthropic recently securing additional investment, potentially elevating its worth to $30 billion, FTX customers may find reason to be optimistic. This development comes to light due to FTX founder Sam Bankman-Fried’s prior investment in the AI firm. Anthropic has successfully procured additional investment, with reports indicating that Google and undisclosed parties may be involved. Google, an existing investor with approximately a 10% share in the company as of 2022, is rumored to be participating in this fresh funding round.  You might also like: FTX founder Sam Bankman-Fried’s trial day 2: Recap Implications for FTX Creditors Within the FTX creditor community, the prospect of a valuation increase for Anthropic is generating some optimism. The FTX 2.0 Coalition, representing a collection of t...

FTX founder Sam Bankman-Fried’s legal team argued that the Department of Justice (DoJ) is embellishing their client’s access to defense documents. In a letter released on Sept. 8, the defense insisted that their client’s access to necessary legal material via laptops is limited. Meanwhile, prosecutors maintain that they have resolved the laptop issues with cooperation from the defense.  The bone of contention is the alleged inadequate conditions at the Metropolitan Detention Center (MDC), which the defense posits are hindering their client from adequately preparing for his forthcoming trial in October. Judge Lewis Kaplan was drawn into the matter last week, requesting both parties present him with briefs detailing the conditions at the detention center. However, both parties seem to read from different scripts with conflicting accounts. You might also like: FTX looks to claw back millions paid to Shaq, other celebrity endorsers The DoJ says Bankman-Fried has daily ac...

Customer funds from Sam Bankman-Fried’s FTX were allegedly spent on a $2.5-million yacht , which was believed to be a gift for Sam Trabucco, the former co-CEO of Alameda Research. Two filings — one from July 31 and another from Aug. 31 — show a long list of statements, fund transfers and payments made prior to FTX’s bankruptcy. Among the items listed is a cash payment of more than $2.5 million to the American Yacht Group “for the benefit of Sam Trabucco.” $2.5m of FTX customer deposits were used for Sam Trabucco's Yacht pic.twitter.com/6gN4pvD3q8 — Sunil (FTX Creditor Champion) (@sunil_trades) September 1, 2023 Trabucco was one of the first hires at Alameda, a trading firm and sister entity of FTX. He resigned from the now-defunct hedge fund on Aug. 24, 2022, claiming he could no longer “justify” being a central part of it and wishing to “prioritize” other things in his life. Less than three months later, FTX and Alameda went bankrupt. An FTX partin...

FTX and Fund Transfers The trading platform is still in the process of settling its creditors and these observed token transfers have cast a series of theories about what the core intention of the transfers might be. According to earlier reports, FTX has agreed to adopt the expertise of Mike Novogratz’s Galaxy Digital to handle the tokens still associated with the brand. advertisement One of the topmost schools of thought is whether or not these ongoing transfers are to an account controlled by Galaxy Digital or its associated wallets respectively.  According to a screenshot of the transfer requests flying around on social media, the firm has moved tokens ranging from Chainlink (LINK) to MATH tokens and its native token FTT all of which are resident on the Wormhole Bridge. Some of the FTX token transfers have also transverse other chains or networks but with Wormhole posing as the dominant channel to move the funds. Considering the history of ...

Kraken co -founder Jesse Powell doubts FTX 2.0’s potential to bounce back from bankruptcy. In a tweet, he criticized the proposed recovery plan for the struggling exchange.  Powell believes starting from scratch would be a better option claiming FTX 2.0 lacks technology, licenses, banking, and has to deal with a damaged reputation.  The co -founder also suggests that the trustee in charge of FTX’s bankruptcy should auction the platform’s trademark and domain to the highest bidder. FTX 2.0 would be worse than starting from scratch. No team, no tech, no licenses, no banking, tarnished brand. The trustee should just auction off the domain and trademark to the highest bidder. Anything beyond that is simply a fee extraction attack on delusional creditors. https://t.co/l7JirsbwjP — Jesse Powell (@jespow) August 2, 2023 In his view, FTX 2.0 appears to be nothing more than a “fee-extraction assault on creditor fantasists.” He argued that even w...

DoJ lawyers said the decision came following litigation filed by the FTX co-founder in the Bahamas protesting the additional charges, which could be lengthy. The criminal trial of FTX co-founder Sam Bankman-Fried will be going ahead with the eight charges he was initially pinned for by United States prosecutors — at least for now. In a June 14 court filing, prosecutors with the U.S. Department of Justice (DoJ) wrote a letter to district judge Lewis Kaplan saying they would proceed to try Bankman-Fried on the eight charges they levied against him in December 2022. The DoJ lawyers cited a motion filed by Bankman-Fried in the Bahamas, who argued that many of the 13 charge s he faced were not in the original indictment, which was the basis for his extradition from the country. As this is likely to be a lengthy process, the prosecutors wrote, they’re “prepared to proceed to trial as scheduled on the counts contained in the original indictment.“ “It now appears that litigation of that mo...

FTX is looking to eliminate Turkish units from its bankruptcy case equation. According to a filing made on Friday, FTX and its debtors brought to light a jurisdiction dispute and claimed that Turkish authorities will not essentially adhere to orders made by U.S. courts. FTX seeks to remove Turkish units from Bankruptcy case, saying that Turkish authorities are unlikely to follow instructions from U.S. courts — unfolded. (@cryptounfolded) January 30, 2023 Also Read: Bitcoin Has ‘Moved on’ From The FTX Saga: Here’s Why Turkish authorities aren’t bound by bankruptcy provisions: FTX Turkey’s Financial Crimes Investigation Agency started investigating  FTX post its collapse in Q4 2022. At that time, the agency revealed that it was looking into people, institutions, banks, and crypto service providers related to FTX . FTX Turkey was a part of the 134 entities linked to Sam Bankman-Fried’s empire that sought protection from ...

Despite suggesting a possible ban, U.S. Senator Sherrod Brown stated it would be “very difficult” to implement because activity “would go offshore.” United States Banking Committee chairman Sherrod Brown has suggested that the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should perhaps consider a ban on cryptocurrencies. Brown’s comments were made in a Dec. 18 appearance on NBC’s “Meet the Press” although the Senator quickly added that a ban would be difficult to enforce. “We want them to do what they need to do at the same time, maybe banning it, although banning it is very difficult because it would go offshore, and who knows how that would work.” Earlier, in response to a host's question about Senator Jon Tester who believes crypto currencies should be banned, Brown said he shares the “same thought.” The Ohio representative stated that over the last 18 months he has been “educating” his colleagues and the public on the dangers of cryp...

Yesterday, Sam Bankman-Fried (SBF), founder of the now defunct crypto exchange FTX , was arrested in the Bahamas. However, some questioned why the 30-year-old was not allowed to testify before being arrested. Nonetheless, many are hopeful that justice will finally be served to those who were wronged. SBF has eight charges against him, and he could go to prison for 115 years if convicted for all counts. Moreover, it is unclear if other FTX executives will face trial. With that in mind, let us dive into the eight charges SBF is currently facing. Charges against the FTX founder Conspiracy to commit wire fraud on customers and lenders : Wire fraud has a maximum sentence of 20 years. According to reports, the exchange’s inner circle was part of a group chat on Signal called “Wirefraud.” According to the report, Signal was the chosen platform in the hopes that the information would remain hidden. Conspiracy by misusing customer funds : One of the crimes committe...

The crypto community rejoiced as reports about FTX ’s former chief Sam Bankman-Fried ’s arrest began surfacing. SBF was nabbed by The Royal Bahamas Police Force following criminal charges filed against him. Since this was filed by the United States, they would most likely seek his extradition. Soon after this, speculations about his prison time began surfacing. While some suggested that he would be there for good, a few others noted how he would get out sooner or later. This, however, depended on the magnitude of charges that the United States had filed against him. The New York Times reported that the FTX CEO was charged with wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy as well as money laundering. JUST IN: 🇺🇸 US Government charges Sam Bankman-Fried with money laundering, wire fraud, and securities fraud, NYT reports. — Watcher.Guru (@WatcherGuru) December 13, 2022 In addition to this, the U.S. S...