Crypto Exchange FTX's Founder Faces Trial Over Regulatory Disdain and Missing Billions
Summary:
The ongoing criminal trial of Sam Bankman-Fried, founder of the failed crypto exchange FTX, has revealed his derogatory views towards regulators, despite his earlier public support for the same. He also admitted to seeing benefits in being involved in drafting crypto regulations, like gaining an advantage over competitor Binance. Prior to FTX's collapse last year, it held close to $15 billion in customer deposits, with $10 billion reportedly missing. The trial is expected to conclude by next week.
Sam Bankman-Fried, the infamous founder of the failed crypto exchange FTX, has made no secret of his contempt for regulators despite previously touting their importance in the cryptocurrency world. The FTX criminal trial is currently underway and during proceedings, Assistant U.S. Prosecutor Danielle Sassoon probed Bankman-Fried's recollection of his prior tweets endorsing regulatory structures for safeguarding customers in the blockchain domain. His response was dismissive: "I don't remember". What he did recall, however, is using explicit language to vent frustration against regulators and a certain group of individuals on Crypto Twitter. These controversial statements came prior to Bankman-Fried's arrest, following his testimony in a 2021 session with the U.S. House Financial Services Committee on the topic of crypto regulation.Sassoon questioned him on his earlier stance, hinting at the possibility of ulterior publicity motives. When pressed, Bankman-Fried admitted that he saw some advantages in involving himself in crypto regulation talks, like gaining a competitive edge over rival exchange Binance. Prior to the disastrous implosion of FTX in November last year, Bankman-Fried conceded that FTX and its affiliate hedge fund, Alameda Research, were handling nearly $15 billion in client deposits, with a frightening $10 billion going AWOL.On November 8, 2022, Binance's founder Changpeng Zhao intended to acquire FTX, but the agreement dissolved within 24 hours, allegedly due to uncovered inconsistencies in FTX's financial records. Bankman-Fried then disclosed a massive withdrawal spike by FTX customers on November 7, 2022, leading the firm into a severe cashflow crisis.Tweeting from the trial courthouse, Inner City Press reporter is keeping a close eye on the unfolding drama. The conclusion of the criminal trial against Bankman-Fried is anticipated by early next week. Bitmain's revenge and Hong Kong's tumultuous journey in the crypto world continue to stir interest.
Published At
10/30/2023 4:59:10 PM
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