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FTX CEO Finds $5Billion in Crypto case scandal

FTX CRYPTO SCANDAL

An counsel for the company claims that the defunct cryptocurrency exchange FTX has discovered more than $5 billion (£4.1 billion) in assets.

A US bankruptcy court was informed on Wednesday, nevertheless, that it is yet unknown how much money clients have lost.

Sam Bankman-Fried, the former CEO of FTX, is charged by prosecutors of planning a “epic” scam that may have cost investors, clients, and lenders billions of dollars.

A claim that Mr. Bankman-Fried defrauded investors has been met by his plea of not guilty.

According to Andy Dietderich, an attorney representing FTX, “We have discovered almost 5 billion dollars in cash, liquid cryptocurrency, and liquid investment securities” in Delaware.

The Securities Commission of the Bahamas, where FTX had its headquarters and where Mr. Bankman-Fried was residing at the time of his arrest, seized some assets, according to Mr. Dietderich, who claimed that the sums recovered do not include those.

The proceedings have not revealed the names of the majority of FTX’s clients and investors who have suffered losses.

Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft were all addressed in court documents, though.

The 30-year-old was detained in the Bahamas in December and then deported to the US. He is charged with carrying out “one of the largest financial frauds in US history.”

Tom Brady

On November 11, FTX, which had a $32 billion market value a year prior, filed for bankruptcy protection. $8 billion in client cash are thought to have gone missing.

Federal US prosecutors accuse Mr. Bankman-Fried of using money from FTX clients without authorization to pay his company Alameda Research’s bills and make other investments.

Eight criminal charges, including wire fraud, money laundering, and crimes related to campaign funding, were made public by the prosecution in December. Additionally, claims have been made against Mr. Bankman-Fried by financial regulators.

In connection with their alleged participation in the demise of the company, Caroline Ellison, the former CEO of Alameda, and FTX co-founder Gary Wang have also been charged. They both reportedly cooperated with the inquiry, according to authorities.

Mr. Bankman-Fried was granted $250 million in bond and released from custody at the end of December, with the restriction that he remain at his parents’ house in California.

Prior to his arrest, he spoke with BBC News and said the following: “I didn’t purposefully engage in fraud. I don’t believe I defrauded anyone. All of this was something I wanted to avoid. Definitely not as proficient as I had believed I was.”

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