Sam Bankman FriedThe cryptocurrency executive provided his first detailed response on Thursday Criminal charges against himHe argued that millions could still receive their money from his crashing exchange, FTX.
In a statement published substack,Mr Bankman-Fried stated that “a very substantial recovery is still likely to come”.
He wrote, “I did not steal money and I certainly did not hide billions.” “Almost all of my assets were and still are usable to support FTX clients.”
His statement came a day following the announcement by attorneys for FTX that they had recouped at least $5Billion in funds. To support his claim that FTX clients can still make them “pretty complete”, Mr. Bankman-Fried cited the ad. It wasn’t clear if he had consulted his legal team before publishing his testimony.
After a run-on client deposits revealed an $8Billion hole in its accounts in November, FTX filed bankruptcy. Mr. Bankman Fried, 30 was at the time. He was arrested last monthHe was at his Bahamas home, where FTX was based. The documents were quickly sent to the United States. Federal prosecutors in Manhattan accused him of fraud, money laundering and campaign finance violations.
Authorities claim that Mr. Bankman Fried stole billions in customer deposits from FTX. He then used the funds to purchase luxury real estate, invest with other companies, make political donations, and fund cryptocurrency trading at Alameda Research (the hedge fund he also owns).
He was the founder of FTX It was issued last month with a $250 million bond Under strict conditions, he was to remain in Palo Alto, California with his parents. Last week, he made a brief court appearance in New York. He pleaded not guiltyCriminal charges.
What you need to know regarding the collapse of FTX
A spokesperson for Damian Williams (the US Attorney for New York’s Southern District) declined to comment. He is currently prosecuting Bankman–Fried.
A spokesperson for Mr Bankman Fried declined to comment, as did his legal team.
Thursday’s statement of Mr Bankman Fried repeats a story he had previously repeated – and which US prosecutors have strongly rejected. The publication gave a detailed timeline detailing Alameda’s financial condition. This publication was closely tied to FTX. It argued the company had lost its money due to a crash in the market for which it wasn’t prepared.
In a statement by Bankman-Fred, FTX was also blamed for its failure partly due to an attack by Binance, its largest competitor.
He wrote, “You didn’t steal any money.”
However, he did not detail Alameda’s finances. Mr. Bankman Fried also stated that he had not managed the company “for the last few years” and that he didn’t have access to all its financial information. Prosecutors, regulators and prosecutors argued that he was actually involved in Alameda’s management. They also claimed that he orchestrated a system that allowed Alameda to borrow unlimited amounts from FTX’s pool customer deposits.
His statement did nothing to address the guilty pleas made by two former senior executives. Caroline Ellison and Gary WangBoth are cooperating with plaintiffs. Mrs. Ellison, who was a date to Mr. Bankmanfried, was president of Alameda at the time when the company collapsed. Mr. Wang founded FTX along with Mr. Bankmanfried.
On Wednesday, a bankruptcy attorney for FTX told a federal judge that the exchange had recovered more than $5 billion in cash and crypto assets — far more than the company previously said it had on hand. The announcement raised hopes that FTX could be able return some funds to millions upon millions of customers and creditors around the globe.
Andrew Dittderich (Sullivan and Cromwell’s lawyer) told the Delaware judge that FTX’s bankruptcy was being handled by a Delaware judge that the legal team had identified over nine million customer accounts on cryptocurrency exchange.
In an email sent after the bankruptcy hearing, Mr. Dietderich stated in part that $5 billion of newly recovered assets was in cash.
He claimed that the newly recovered assets did not include nearly $20M in cash and $484M in stock in Robinhood online trading company Robinhood that federal authorities seized from an antigua-based Mr. Fred Bankman. He stated that FTX’s new management believes Robinhood stock and forfeited funds should go to FTX’s creditors.
FTX is also examining whether it could sell $4.6 billion worth of investments it has made in other companies, mainly crypto-related businesses.
Following the fall of FTX
The industry was stunned by the sudden crash of the cryptocurrency exchange.
Thursday’s statement from Bankman-Fred revealed that he previously offered to contribute “practically all of my personal capital to Robinhood for its clients” if FTX agreed with him to pay his legal bills. He claimed that these shares were his personal property, and that he needed them to be sold to pay his attorneys.
Mr. Bankman Fried also blames Sullivan & Cromwell. They did legal work for FTX just before the stock market crash. He was under pressure from his employer to make the company bankrupt and allow the restructuring lawyers to take over. John Jay Ray IIIHe was taken.
Mr. Bankman Fried used excerpts from the financial statements and balance sheets of FTX in his statement. Mr. Ray, in bankruptcy court filing, attacked Previous management of FTXHe stated that there was a “completely failure of company control” so the financial statements of the company should not be trusted.
Moira Pinza is a former federal prosecutor who is now in private practice. She said that Mr Bankman-Fred was a gift for prosecutors and a headache to his legal team.
Ms. Penza said that “the strongest evidence a prosecution can have is the suspect’s statement, and Bankman Fried is giving the government something to do with it.” “If I was prosecuting, I would want him speaking more, but if I was defending him I would tell his silence.”
Bankman-Fried gave a series interviews after the FTX crash. However, he has been relatively quiet since being released on bail last week, with the exception of A.J. A few tweetsSo far. He has had a few visitors at his parents’ residence, including author Michael Lewis, who is writing about him. Encrypted YouTube Profile Tiffany Fong; and ReporterPuck Online Publishing.
Bankman-Fried stated that he had hoped for a detailed response to the allegations against his office much earlier than that. He began with testimony he intended to give to the House Financial Services Committee Dec. 13.
“Unfortunately the Department of Justice moved me to arrest the night prior, precipitating my witness with a very different media cycle,” he wrote.
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