Browsing:FTX

$372 million hack on crypto exchange FTX
1 year ago 1 min read

Mysterious FTX Hack After Bankruptcy Finally Investigated by US Authorities

The US Department of Justice (DOJ) is reportedly investigating a $372 million hack on cryptocurrency exchange FTX that occurred as the company filed for bankruptcy on November 11. According to blockchain analytics unit, $663 million in various cryptocurrencies belonging to FTX was suspiciously on the move, with $180 million confirmed as FTX moving funds into cold storage and the remaining $477 million allegedly being quickly swapped into ether and stablecoin DAI by the hackers. FTX CEO John Jay Ray III confirmed the hack and said the company was in contact with law enforcement. The DOJ’s investigation is separate from the

FTX customers filed lawsuit against the crypto exchange
1 year ago 1 min read

Customers Sue FTX for Priority Repayment After Technical Issues Freeze Accounts

Former customers of the now bankrupt cryptocurrency exchange FTX have filed a class action lawsuit against the company and its executives, including Sam Bankman-Fried, seeking priority rights to repayment before non-customer creditors. The plaintiffs allege that a group of FTX executives failed to put in place adequate controls to protect customer assets, leading to the misappropriation of billions of dollars in customer funds and digital assets. According to bankruptcy filings, FTX Trading Ltd. and its affiliates owe their 50 largest creditors around $3.1 billion. The US Department of Justice has also launched a criminal probe into the $372 million stolen

SBF FTX borrowed over $546 million from Alameda Research
1 year ago 1 min read

Sam Bankman-Fried Borrows $546 Million from Alameda to Purchase Robinhood Shares

Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, borrowed over $546 million from Alameda Research, the exchange’s sister company, to fund the purchase of Robinhood shares. Bankman-Fried and FTX co-founder Zixiao “Gary” Wang took out four loans from Alameda through promissory notes between April and May, according to an affidavit filed by Bankman-Fried in the Antigua and Barbuda High Court. The loans were used to fund Bankman-Fried’s shell company, Emergent Fidelity Technologies, which acquired a 7.6% stake in brokerage firm Robinhood in May for $648 million. The revelation of the loans could complicate the ongoing legal dispute over the ownership

Alameda Research wallets activated after SSBF bailed out from jail
1 year ago 1 min read

Active Alameda Research Wallets Spark Foul Play Suspicions After SBF Bail

Alameda Research, a trading firm and sister company of FTX, transferred funds from its crypto wallets shortly after the release of its former CEO, Sam Bankman Fried, on a $250 million bond. The way in which the funds were transferred raised concerns among the community, as the Alameda wallet was found to be exchanging small amounts of ERC20s for ETH/USDT and then funneling the Ether and USDT through instant exchangers and mixers. On-chain analyst ZachXBT discovered that the Alameda wallet ultimately swapped the funds for Bitcoin using decentralized exchanges such as FixedFloat and ChangeNow, platforms that are frequently used by

The collapse of FTX exchange
1 year ago 1 min read

FTX Collapse Highlights Need for Prudent Regulation in the UK

The collapse of FTX has prompted calls for more stringent regulation of cryptocurrency markets in the United Kingdom. Bank of England Deputy Governor Sir Jon Cunliffe argued that investors in the country need more protection and that a regulatory framework is needed to ensure that cryptocurrency markets offer the same level of consumer protection and integrity as traditional financial markets. Cunliffe pointed to increased interest in cryptocurrency markets from both financial institutions and retail investors as a reason for the need for greater regulatory oversight. He also cited the collapse of FTX as an example of a situation where existing

Caroline Ellison
1 year ago 1 min read

Former Bank Executive Admits to Misleading Lenders in Court

Caroline Ellison, the former CEO of Alameda Research, admitted in court in New York that she lied to lenders about how much money her company was borrowing from the failed FTX crypto exchange. Ellison knew that her actions were wrong and agreed with the former CEO of FTX, Sam Bankman-Fried, to create false financial statements to hide the borrowing arrangement. “From 2019 through 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Mr. Bankman-Fried,” Ellison said, according to the transcript cited by Bloomberg. “In practical terms, this arrangement permitted

Ronnie Abrams Judge
1 year ago 1 min read

Judge Ronnie Abrams removes herself from the case involving FTX and its former CEO, Sam Bankman-Fried (SBF)

A judge, Ronnie Abrams, has removed herself from a case involving FTX, a cryptocurrency exchange, and its former CEO, Sam Bankman-Fried (SBF). The judge made this decision because her husband works at a law firm, Davis Polk & Wardwell, which provided advice to FTX in 2021. The judge’s husband, Greg Andres, is a partner at the law firm and has no involvement in the case, but the judge decided to remove herself from the case to avoid any potential conflict of interest. SBF was recently released on a $250 million bail bond and promised to appear in court for future

Paxos trust company
1 year ago 1 min read

Paxos recovers $20 million worth of gold tokens that were stolen from FTX

Paxos, a blockchain and trust company, has recovered $20 million worth of gold tokens that were stolen from FTX, an exchange, in November. 11,184 Paxos Gold (PAXG) worth $20 million, which are backed by real gold in Paxos’ custody, were frozen from four hacker-controlled wallets and have now been successfully reclaimed. Furthermore, this recovery represents only a small portion of the hack, which saw approximately $400 million worth of assets stolen. The FTX chief, John Ray III, revealed that the exchange had poor security controls and stored private keys to its wallets in an unencrypted manner, which could have contributed

SBF FTX out from prison
1 year ago 1 min read

Sam Bankman-Fried has been granted bail in the amount of $250 million

Sam Bankman-Fried, the founder of FTX, has been granted bail in the amount of $250 million, the highest pretrial bond on record, after being charged with wire fraud, money laundering, and violating campaign finance laws. Bankman-Fried has agreed to be confined to his parents’ home in Palo Alto, California and report to pretrial services by Friday morning. The high bond amount is due to Bankman-Fried’s notoriety and the risk of flight. He will be required to put up equity in his parents’ home and have a non-family member co-sign the bond agreement. A 10% payment will secure the bond, which

Caroline Ellison pleaded guilty
1 year ago 1 min read

Founder of FTX’s girlfriend Caroline Ellison and Gary Wang pleaded guilty to federal fraud charges

Two executives of the FTX exchange, Caroline Ellison and Gary Wang, have pleaded guilty to federal fraud charges in the US. The pair have also agreed to cooperate in the case against Sam Bankman-Fried, the CEO of Alameda Research, who is accused of defrauding customers, investors, and lenders, and of diverting customer funds to buy real estate, lend out, make dubious investments through Alameda, and make political donations. Bankman-Fried is currently in FBI custody in the US after agreeing to be extradited from the Bahamas. Ellison and Wang are accused of playing a role in a scheme to misuse FTX

Crypto exchange FTX has over $1 billion in cash
1 year ago 1 min read

FTX crypto exchange claims it has over $1B in cash

The new management team of bankrupt cryptocurrency exchange FTX has reportedly claimed it has over $1 billion in cash assets held by U.S. financial institutions. The team is also seeking to retrieve millions of dollars in political and charitable contributions made by former CEO Sam Bankman-Fried. FTX has identified $720 million in cash assets in U.S. financial institutions that have been authorized by the U.S. justice department to hold funds, but which FTX has not consolidated. Another $500 million in cash assets is already held by various institutions in the U.S. The company is working to gain access to these

SBF to be extradited to the US
1 year ago 1 min read

Sam Bankman-Fried (SBF) agrees to be extradited to the US to face criminal charges

Sam Bankman-Fried (SBF), the former CEO of FTX, has agreed to be extradited to the United States to face criminal charges, according to his attorney, Jerone Roberts. Roberts stated that SBF has agreed to the voluntary extradition and will complete the process in court later today. It is possible that SBF could be extradited on the same day as his court appearance. The decision to extradite is reportedly motivated by SBF’s desire to “put the customers right.” SBF is facing charges in the US from the Securities and Exchange Commission, the Commodities and Futures Trading Commission, and the Department of

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