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FTX CEO Disputes Sam Bankman-Fried’s Claims of Solvency and No Harm to Creditors

FTX CEO Disputes Sam Bankman-Fried’s Claims of Solvency and No Harm to CreditorsJohn J. Ray III, the chief executive officer of FTX Trading Ltd., has issued a strong rebuttal against former CEO Sam Bankman-Fried’s assertions regarding the company’s financial state and the impact on its creditors. FTX Chief Restructuring Officer and CEO Debunks Bankman-Fried’s FTX Solvency Claims John J. Ray III outlined the extensive efforts made to […]

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Deltec Bank Accused of Secretly Extending a $2 Billion Credit Line to Alameda Research

Deltec Bank Accused of Secretly Extending a  Billion Credit Line to Alameda ResearchDeltec Bank and Trust Ltd, based in The Bahamas, stands accused of covertly extending a $2 billion line of credit to Alameda Research. A lawsuit, filed by those who claim to be victims of Sam Bankman-Fried, accused Deltec of granting a three-day grace period to Alameda Research for the settlement of purchased stablecoins. Misappropriation of […]

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FTX Foundation staffer fights for $275K bonus promised by SBF

FTX Foundation employee Ross Rheingans-Yoo said he was not part of Sam Bankman-Fried’s “inner circle” and knew nothing about FTX’s fraud.

An employee of FTX’s charity wing recruited by FTX co-founder Sam Bankman-Fried is trying to get paid $275,000, the remainder of his claimed 2022 salary bonus.

Ross Rheingans-Yoo's lawyers argued in a Nov. 13 court filing that only $375,000 of his $650,000 bonus was paid by FTX. They claim the remaining funds were owed when the crypto exchange filed for bankruptcy in November 2022.

Rheingans-Yoo’s latest filing comes in response to FTX’s objection filed on Oct. 30.

Excerpt of Ross Rheingans-Yoo’s Nov. 13 response to FTX Debtor’s objection. Source: Kroll

Rheingans-Yoo shared part of a Google Doc created by Bankman-Fried that laid out his employment terms at the FTX Foundation, which came with a $100,000 base salary. He claimed Bankman-Fried told him in memo  

Rheingans-Yoo iterated he was not part of Bankman-Fried’s “inner circle” and wasn’t aware that FTX misappropriated customer funds with his lawyers adding:

“Instead, Rheingans-Yoo was a faithful employee who found himself in a mess he did not create.”

Rheingans-Yoo claims he is entitled to a further $650,000 specifically to donate to charity, a prepetition salary payment of about $5,700 and a post-petition salary of at least $62,800.

Advisers claim FTX has already fully paid Rheingans-Yoo his bonus because he elected to have the award partially repaid via options in the firm’s corporate affiliates before it filed for bankruptcy.

However, Rheingans-Yoo denies that claim.

The fate of Rheingans-Yoo’s bonus will be determined by a Delaware bankruptcy judge who is overseeing FTX’s Chapter 11 bankruptcy.

Related: FTX files billion-dollar lawsuit against Bybit over asset withdrawals

FTX sued Rheingans-Yoo’s Latona Biosciences Group, Bankman-Fried and several other defendants in July to return $71.6 million in investments and donations allegedly sent to various life science companies.

The crypto exchange claims Rheingans-Yoo and Bankman-Fried personally benefited from the investments and donations but FTX and Alameda Research did not.

“Each of these transfers was made with the intent to hinder, delay, or defraud present or future creditors, a fact known by the FTX Foundation, Latona, and Bankman-Fried.”

Rheingans-Yoo claims his work at Latona, which involved analyzing potential recipients, speaking with their founders and executives and conducting due diligence, would’ve produced “positive results for society.”

Magazine: Can you trust crypto exchanges after the collapse of FTX?

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Sam Bankman-Fried Found Guilty of Committing Billion-Dollar Fraud at FTX and Alameda Research

Sam Bankman-Fried Found Guilty of Committing Billion-Dollar Fraud at FTX and Alameda Research

Sam Bankman-Fried has been found guilty of spearheading a billion-dollar fraud against customers and investors at the crypto exchange FTX and trading firm Alameda Research. A jury has found Bankman-Fried guilty on all seven charges against him, including wire fraud and conspiracy to commit wire fraud against FTX’s customers, wire fraud and conspiracy to commit […]

The post Sam Bankman-Fried Found Guilty of Committing Billion-Dollar Fraud at FTX and Alameda Research appeared first on The Daily Hodl.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

FTX and Alameda linked wallets transfer $10M of crypto to exchanges in just 5 hours

According to Spot On Chain data, the firms sent $10 million worth of crypto to a single wallet address, which then deposited the funds to Binance and Coinbase.

Wallets linked to bankrupt crypto firms Alameda Research and FTX transferred over $10 million worth of cryptocurrency to exchange deposit accounts in five hours on October 24-25, according to data from blockchain analytics platform Spot On Chain. The movement of these funds may indicate that the firms plan to sell some assets to pay back creditors.

According to Spot on Chain data, an address listed as “likely” belonging to FTX transferred 2,904 Ether (ETH), worth over $5 million at the time, to address 0xde9a61c2b776e2f4c6ddb0c9ad5ccfcfc15b0a9b at 8:18 pm UTC on October 24. This address sent $3.4 million of the funds to a Binance deposit address and $1.8 million to a Coinbase deposit address. Thirty-nine minutes later, a wallet identified as belonging to Alameda Research sent $95 worth of tokens to this address, including some Chainlink (LINK), MakerDAO (MKR), and Aave (AAVE) tokens.

Related: FTX’s Sam Bankman-Fried will testify at criminal trial, say defense lawyers

Over the next five hours, an additional $5 million worth of cryptocurrency was sent into this address by FTX and Alameda wallets, including some Compound (COMP) and Render (RNDR) tokens. At approximately 2:00 am UTC on October 25, this address sent approximately $2 million worth of LINK, $2 million worth of MKR, and $1 million worth of AAVE to a Binance deposit address. The total value of cryptocurrency sent to exchange deposit addresses during this period was $10,362,403, according to Spot on Chain data.

On September 13, a Delaware Bankruptcy Court approved a plan to liquidate $3.4 billion worth of crypto assets that FTX and Alameda Research held. The announcement sparked fears that liquidating such a large amount of crypto may cause a slump in the market. However, experts have argued that the gradual, phased nature of the liquidation should limit its influence on the market.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Former FTX CEO Sam Bankman-Fried Decides To Testify in Court After Damning Testimonies From Colleagues: Report

Former FTX CEO Sam Bankman-Fried Decides To Testify in Court After Damning Testimonies From Colleagues: Report

Former FTX chief executive Sam Bankman-Fried has reportedly decided to testify in court after his colleagues took the witness stand to provide evidence. In a lengthy thread on the social media platform X, Inner City Press reports that Bankman-Fried’s lawyer has stated that his client will testify after the defense’s three witnesses in order to […]

The post Former FTX CEO Sam Bankman-Fried Decides To Testify in Court After Damning Testimonies From Colleagues: Report appeared first on The Daily Hodl.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why

An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why

A pair of lawyers unaffiliated with Sam Bankman-Fried or FTX are weighing in on the possibility of the former CEO testifying during his ongoing trial. In a new interview with Laura Shin on the Unchained Podcast, Sam Enzer, partner at law firm Cahill Gordon and Reindel, says he thinks Bankman-Fried would likely only make things […]

The post An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why appeared first on The Daily Hodl.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Secret Alameda recording reveals exact moment staff learned about FTX deposits

A 75-minute recording, obtained by Cointelegraph, shows the exact moment former Alameda Research CEO Caroline Ellison told employees about their use of FTX customer deposits.

A 75-minute secretly recorded audio clip of Caroline Ellison has revealed the exact moment 15 former Alameda Research staff found out the hedge fund was “borrowing” user funds from FTX. 

The full-length recording, obtained by Cointelegraph, provides fresh insights into the palpable tension felt by Ellison and Alameda staff in the lead-up to FTX’s collapse.

“Alameda was kind of borrowing a bunch of money via open-term loans and using that to make various illiquid investments. So like a bunch of FTX and FTX US equity [...] Most of Alameda's loans got called in in order to meet those recalls,” Ellison explained during an all-hands meeting in Hong Kong on Nov. 9, 2022.

“We ended up like borrowing a bunch of funds from FTX, which led to FTX having a shortfall in user funds.”

“[FTX] basically always allowed Alameda to borrow users’ funds,” she added, speaking to the 15 or so staff in the meeting.

Select segments of the audio recording of the meeting were also played before the court on the eighth day of Sam Bankman-Fried’s criminal trial on Oct. 12, which was part of a witness testimony from Christian Drappi, a former software engineer at Alameda.

Drappi’s appearance on the witness stand came immediately following nearly three days of Ellison’s testimony. It is understood that before the meeting, Drappi and many other Alameda employees had no idea that the hedge fund had allegedly been using FTX customer deposits to prop up its trading activity.

In the recording, Drappi is also overheard asking Ellison when she became aware that FTX user deposits were being misused by Alameda, and who else at the company had known about it.

Initially Ellison flinched away from answering, but Drappi pressed again:

“I’m sure this wasn’t, like, a YOLO thing, right?”

Related: Changpeng Zhao’s tweet ‘contributed’ to collapse of FTX, claims Caroline Ellison

According to court reporting from the trial, the playback of this audio led to one of the more humorous moments in court, where Drappi had to explain the term “YOLO” to everyone in attendance, saying that he wanted Ellison to confirm that the use of FTX deposits hadn’t just been a “spontaneous” decision.

In his testimony, Drappi also described Ellison’s conduct at the meeting as “sunken” and didn’t display much in the way of confidence to Alameda employees. He said that he was “stunned” to learn about the extent of the relationship between FTX and Alameda, and he quit the next day.

Speaking to Cointelegraph, Alameda Research engineer Aditya Baradwaj, who was also present at the meeting said the room was “extremely tense,” with Ellison surfacing a wealth of new information that had “never been discussed internally” — including the later-abandoned acquisition of FTX by its then-largest competitor Binance.

“It became pretty clear that there was no future for the company and that we all had to leave. And we did that right after,” said Baradwaj.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

Yala Unveils Vision to Revolutionize DeFi With Bitcoin

Ex-Alameda CEO Caroline Ellison Says Sam Bankman-Fried Directed Her To Commit Crimes As Trial Enters Week Two

Ex-Alameda CEO Caroline Ellison Says Sam Bankman-Fried Directed Her To Commit Crimes As Trial Enters Week Two

Former Alameda Research chief executive Caroline Ellison says former FTX CEO Sam Bankman-Fried directed her to commit fraud. Ellison said Alameda, the trading arm of FTX, took around $14 billion from the exchange’s customers and used it for investments between 2020 and 2022, according to lengthy court transcripts from Bankman-Fried’s trial released by Inner City Press […]

The post Ex-Alameda CEO Caroline Ellison Says Sam Bankman-Fried Directed Her To Commit Crimes As Trial Enters Week Two appeared first on The Daily Hodl.

Yala Unveils Vision to Revolutionize DeFi With Bitcoin