Bankman-Fried's $8B Scandal Emerges: Tether Updates Reporting in 2024, LBRY Halts SEC Appeals
Summary:
In Sam Bankman-Fried's criminal trial, critical revelations were made by his former legal advisor, Can Sun, relating to an $8 billion discrepancy in Alameda Research’s financial records. In related news, Tether plans to deliver real-time reporting of their reserve data by 2024, while blockchain firm LBRY, burdened by the weight of accumulated debts amounting to several million dollars, has decided to halt its appeals against the SEC.
During Sam Bankman-Fried's recent criminal trial, an explosive revelation was made by his former legal advisor from FTX. In other news, an announcement was made by the Tether executive, Paolo Ardoino, regarding plans for the stablecoin issuer to deliver real-time reporting of reserve data in 2024. Additionally, the blockchain firm LBRY has decided to abandon its appeal against the United States Securities and Exchange Commission (SEC).
At the criminal trial, Can Sun, former legal counsel at FTX, testified that Sam Bankman-Fried asked him to devise legal reasons to justify an $8 billion discrepancy in Alameda Research’s financial records. Only after FTX's bankruptcy filings did Sun become aware of this colossal financial gap. His surprise led him to contemplate potential legal justifications but resulted in his eventual resignation from FTX. According to him, Bankman-Fried had previous knowledge of the predicaments causing the downfall of his exchange and was entirely unperturbed by the unfolding events.
The criminal trial is set to proceed next week in New York. The indictment against Bankman-Fried is expected to be finalized by the prosecution by Oct. 26. However, it is unclear whether the defense will present a case.
In 2024, Tether Holdings, creators of the world's most significant stablecoin by market cap, Tether (USDT), are planning to begin real-time reportage of their reserve data. As of today, the company releases at minimum a daily update of its reserve data while also issuing monthly and quarterly reportages. Based on a Q2 review from BDO accounting firm, Tether has boosted excess reserves by $850 million, taking the total excess reserves to $3.3 billion. The firm also noted an indirect exposure of $72 billion to United States Treasurys secured by money market funds and overnight repo collateral.
As the SEC continues to amass debts, blockchain company LBRY is bidding a final farewell. Owing to their mounting multi-million dollar debts, the company finds it impossible to continue operations and has consequently halted their appeal against the SEC. The debt, owed to SEC, its legal team, and a private lender, has become insurmountable, prompting the company's termination. Commemorating its struggle for online freedom, LBRY expressed its gratitude towards all those who have supported its journey.
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Published At
10/20/2023 6:27:05 PM
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