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Is Sam Bankman-Fried the Culprit of the Ultimate FTX Collapse?

FTX US Crypto Exchange is Solvent – Sam Bankman-Fried

Only one month had passed when Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, filed for bankruptcy on behalf of his company and Alameda Research, its sister hedge fund. Customers requested withdrawals from them, but the company was unable to comply.

$8 billion of missing customer assets ended up in Alameda’s possession. Mr. Bankman-Fried has given various interviews in which he has apologized, acted perplexed by the fall of his business, claimed ignorance, and sought to transfer the blame.

Mr. Bankman­-Fried was imprisoned in the Bahamas on December 12 at the request of the American authorities. He was denied bail the following day. Eight criminal allegations were brought against Mr. Bankman-Fried in the indictment, including conspiracy to commit money laundering, commodities and securities fraud, and wire fraud.

Confession of Mr. Bankman­-Fried

Mr. Bankman­-Fried has confessed that he urged clients to wire funds to Alameda’s bank account, alleging that FTX had failed to set up accounts and that the money was misplaced due to faulty accounting. As stated in the SEC (U.S. Securities and Exchange Commission) complaint, Alameda exploited the cash to make investments, purchase extravagant houses, and make donations to political parties; as a result, Mr. Bankman-Fried was “orchestrating a massive yearlong fraud,” the complaint states.

Mr. Bankman-Fried is still insensitive about the situation and continues his fraud. He keeps denying any illegal activity. Since he was in detention, he could not attend the congressional hearing, but his scheduled testimony was leaked. He alleges that his general counsel duped him into declaring bankruptcy, and the team in charge is mishandling the situation.

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