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The United States Department of Justice has proposed new bail conditions for former FTX CEO Sam Bankman-Fried (SBF)

1 year ago 1 min read

DOJ Seeks to Restrict Sam Bankman-Fried’s Bail to Flip Phones Only

The United States Department of Justice has proposed new bail conditions for former FTX CEO Sam Bankman-Fried (SBF), requesting he is restricted from using smartphones, tablets, computers, and other devices that allow chat and voice communication. The proposal restricts his communication to a flip phone or other non-smartphone with either no internet capabilities or internet capabilities disabled. The proposal was submitted to District Judge Lewis Kaplan of the Southern District of New York, requesting to make the temporary bail conditions recently imposed permanent. The temporary terms include no contact or communication with current or former employees of FTX or Alameda

FTX Discloses Major Deficit in Asset Holdings

1 year ago 2 mins read

Bankrupt Cryptocurrency Exchange FTX Reveals “Massive Shortfall” in Digital Asset Holdings

FTX, the cryptocurrency exchange that filed for bankruptcy in December 2022, has revealed a significant deficit in its digital asset and fiat currency holdings. The shortfall, which amounts to billions of dollars in missing customer funds, affects both FTX and its US-based subsidiary, FTX US. According to a presentation released by FTX on March 2, the exchange held $2.2 billion in exchange wallets and fiat accounts, with only $694 million categorized as the most liquid “Category A Assets” that include cash, stablecoins, Bitcoin (BTC) and Ether (ETH) priced at the latest spot prices. The wallets associated with FTX US held

1 year ago 1 min read

Former FTX executive Nishad Singh in talks to plead guilty to fraud charges

Former FTX executive Nishad Singh is reportedly negotiating a guilty plea deal with Manhattan prosecutors over his involvement in fraud charges related to the cryptocurrency exchange’s collapse last November. Bloomberg reported on Friday that Singh may plead guilty to the charges, putting additional pressure on FTX’s former CEO and founder Sam Bankman-Fried, who pleaded not guilty to an eight-charge indictment related to the bankrupt exchange. The U.S. Securities and Exchange Commission and Commodities and Futures Trading Commission are reportedly considering pressing additional charges against Singh for involvement with FTX. Singh was the former head of engineering at FTX and had

1 year ago 1 min read

FTX CEO Bankman-Fried Faces Risk of Bail Revocation, Judge Warns

FTX co-founder Sam Bankman-Fried could potentially have his bail revoked, according to a federal judge who suggested there was “probable cause” to believe that the former CEO may have engaged in attempted witness tampering. Judge Lewis Kaplan said that this could see Bankman-Fried sent back to jail until his trial in October. Kaplan added that the Feb. 16 hearing was not a bail revocation hearing but noted that it “could get there, conceivably.” Prosecutors have requested further restrictions on Bankman-Fried’s device usage, as they have expressed concerns about his recent device usage. The former FTX CEO has been prohibited from

A US District Judge has banned Sam Bankman-Fried from using VPN

1 year ago 2 mins read

Judge Bans Sam Bankman-Fried from Using VPN While Under House Arrest

A US District Judge has banned Sam Bankman-Fried, the former FTX boss, from using a virtual private network (VPN) after he admitted to using it to watch the Super Bowl while under house arrest. The judge cited the risks associated with using encrypted messaging or call applications and has amended the defendant’s release conditions, effective immediately. This move comes as Bankman-Fried’s lawyers negotiate his bail terms with prosecutors. Recently, the judge barred Bankman-Fried from using encrypted messaging apps, such as Signal, after he was accused of contacting a potential witness in his criminal case. Bankman-Fried is also prohibited from contacting

FTX Takes Legal Steps to Reclaim $400 Million from JPMorgan: New York Times

1 year ago 1 min read

FTX Launches Legal Battle to Retrieve $400 Million from JPMorgan: New York Times

FTX crypto exchange is reportedly negotiating the return of a $400 million investment made by its founder, Sam Bankman-Fried, in Modulo Capital, a relatively unknown hedge fund. According to sources cited by The New York Times, FTX’s new leadership is in talks with Modulo to recover the funds. Modulo is a multi-strategy hedge fund that was founded in 2022 by two former traders from Jane Street, a proprietary trading firm where Bankman-Fried worked before venturing into the crypto industry. The fund’s holdings were converted to cash and placed in an interest-bearing account with JPMorgan, its prime broker, following FTX’s collapse.

FTX has received court approval to sell select investment assets

1 year ago 1 min read

Certain FTX Assets Granted Approval for Sale by Court

FTX has received court approval to sell select investment assets and subsidiaries, as part of the liquidation process. The court authorized the sale or transfer of certain assets, including investments in privately or publicly held companies, warrants, tokens and token warrants, shares, promissory notes, future equity interests and future token interests. The aggregate selling price of each asset must be less than or equal to $1 million, and the confirmed investment value must be less than or equal to $5 million. Investee entities have five days to file an objection to the sale, after which FTX liquidators will proceed with

Robinhood Markets Inc. intends to buy back 55 million of its shares

1 year ago 1 min read

Robinhood Plans to Purchase Seized Shares from FTX Failure

Robinhood Markets Inc. intends to buy back 55 million of its shares from Emergent Fidelity Technologies, which had acquired the shares with loans from Alameda Research, the brokerage arm of FTX. The shares, valued at over $550 million, are the subject of a creditor dispute in the FTX bankruptcy case. The U.S. Department of Justice has seized the shares and Robinhood is in discussions with the DOJ about the proposed purchase. Robinhood expressed confidence in its business in its earnings report and stated that the proposed purchase “underscores the confidence the Board of Directors and management team have in our

1 year ago 1 min read

Bankrupt FTX Faces Huge Bills for Legal and Consulting Services

FTX, the troubled crypto exchange, and its affiliated companies have incurred more than $20 million in legal and consulting fees since filing for bankruptcy protection in November. The company, which has since installed a new CEO and retained three law firms and two consulting firms, is undergoing a complex and expensive wind-down process. The initial bills highlight the cost of FTX’s bankruptcy case and could reduce the amount of return creditors will receive. According to FTX’s new leadership, the exchange and other entities in Chapter 11 bankruptcy in the US held approximately $1.4 billion as of December 31, primarily with

Bankrupt crypto lender Voyager Digital has issued subpoenas

1 year ago 1 min read

Voyager Digital Issues Subpoena to FTX, Alameda, and SBF

Bankrupt crypto lender Voyager Digital has issued subpoenas to several executives from FTX and its sister firm, Alameda Research. The subpoenas requested copies of documents related to communications between FTX, the SEC, and the Department of Justice. Additionally, the subpoena asked for proof of former CEO John Ray’s statements that FTX-Related Entities “used software to conceal the misuse of customer funds” and “did not keep appropriate books and records.” The subpoenas also covered information relating to the loan portfolio between Alameda and Voyager, as well as FTX’s financial condition before and after its bankruptcy filing in November 2022. U.S. bankruptcy

1 year ago 1 min read

Sam Bankman-Fried Secures Small Victory in Court

The US District Judge Lewis Kaplan’s decision to impose severe restrictions on Sam Bankman-Fried’s (SBF) communications in January had been a difficult one for the disgraced FTX boss. After suffering through the blanket comms ban, Bankman-Fried’s defense team, led by Mark Cohen, has negotiated with prosecutors and won a reprieve. SBF will be able to continue communication with current and former FTX employees, as well as family and friends, as long as he abides by a non-contact order. In exchange for this, Cohen has agreed to impose a complete ban on SBF’s cryptocurrency activities and a $1,000 limit on personal

Signature Bank Faces Legal Action for Role in FTX Fund Comingling.

1 year ago 1 min read

Signature Bank Sued for “Significantly Contributing” to FTX’s Mixing of Funds

Signature Bank is facing a class-action lawsuit for its role in the operations of cryptocurrency exchange FTX, which has since filed for bankruptcy. The algorithmic trading firm, Statistica Capital, and Statistica Ltd., claim in a court filing that Signature Bank “had actual knowledge of and substantially facilitated the now-infamous FTX fraud.” The claimants assert that the bank allowed FTX customer funds to be transferred to accounts controlled by Alameda Research, which is owned by FTX founder Sam Bankman-Fried. FTX was considered one of Signature Bank’s clients, although its deposits with the bank accounted for less than 0.1% of the bank’s