4 thoughts on “Figured this scam out from the front – fortunately

  1. 3cardmonte says:

    Sam Bankman-Fried, the disgraced former boss of the failed crypto-exchange FTX, said this week he hopes to start a new business to recoup his investors’ losses in the firm’s collapse.
    Bankman-Fried is currently in the Bahamas. https://www.foxbusiness.com/technology/ftx-ex-ceo-sam-bankman-fried-wants-start-new-business

    (November 12, 2022): Reuters, citing anonymous sources, reported today that Bankman-Fried secretly transferred $10 billion of customer funds from FTX to his trading company Alameda Research, and that a big chunk of that has since vanished. One source it spoke to put the missing amount at about $1.7 billion, while another estimated it was between $1 billion and $2 billion.
    FTX filed for bankruptcy yesterday after a barrage of customer withdrawals earlier this week, and Bankman-Fried resigned as CEO. While CoinDesk and the Wall Street Journal had reported on customer funds from FTX ending up at Alameda, the Reuters reporting on the missing funds came today.
    FTX is based in Bahamas, where what one source called a “gang of kids” including Bankman-Fried ran the platform from a luxury penthouse, according to CoinDesk, with FTX and Alameda’s offices located steps apart.

  2. 3cardmonte says:

    Current FTX CEO John Ray III laid the blame for the cryptocurrency exchange’s collapse on founder and former chief executive Sam Bankman-Fried and his top executives, telling Congress they gambled with customers’ money without any safeguards to protect their investments.
    Ray testified before the House Financial Services Committee Tuesday as furious lawmakers have demanded explanations and promised to make heads roll after the company lost billions of dollars of customers’ money. FTX filed for Chapter 11 bankruptcy following a liquidity crisis caused by Bankman-Fried’s mismanagement of about $10 billion in customer funds. https://www.foxbusiness.com/politics/ftx-ceo-blames-grossly-inexperienced-owners-collapse-says-customer-money-funded-risky-alameda-trades
    Founder Sam Bankman-Fried facing criminal charge pile-on from multiple federal sources https://www.foxbusiness.com/live-news/ftx-live-updates-founder-sam-bankman-fried-indicted-in-new-york-bahamas-makes-arrest
    FTX Founder Sam Bankman-Fried will appear in court in the Bahamas after facing criminal charges from the Securities and Exchange Commission, the CFTC and federal attorneys in New York on Tuesday.

  3. Hodler says:

    Binance has registered $1.9bn of withdrawals in the past 24 hours, blockchain data firm Nansen said on Tuesday, as the world’s biggest cryptocurrency exchange said it had “temporarily paused” withdrawals of the USDC stablecoin.
    How cryptocurrency exchanges, such as Binance and its now-bankrupt former rival FTX, handle customer deposits is under close scrutiny from users and regulators. FTX founder Sam Bankman-Fried was charged by the US Securities and Exchange Commission on Tuesday with defrauding investors. https://www.aljazeera.com/economy/2022/12/13/binance-withdrawals-hit-1-9bn-in-past-24-hours-says-data-firm

  4. 3cardmonte says:

    “Elizabeth Warren unveils bipartisan bill to crack down on crypto money laundering” https://www.cnn.com/2022/12/14/business/elizabeth-warren-bipartisan-crypto-crackdown/index.html
    “Tom Brady pushed crypto to his fans. This lawyer wants him to pay up.
    ‘Why shouldn’t they be held responsible?’ says Florida attorney Adam Moskowitz” https://www.washingtonpost.com/business/2022/12/14/ftx-class-action-lawsuit/
    “…But there are significant legal hurdles to holding promoters accountable. Just this month, a federal judge in California dismissed a lawsuit from investors accusing reality-TV star Kim Kardashian, boxer Floyd Mayweather Jr. and others of touting an obscure crypto token known as EMAX as part of a plan to artificially inflate the coin’s value. Though the celebrities agreed to pay millions in fines to the Securities and Exchange Commission for failing to disclose that they had been paid to promote the token, Judge Michael W. Fitzgerald said investors are partly responsible for what happens to their money.”

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