A Bitcoin (BTC) mining firm backed by disgraced FTX founder Sam Bankman-Fried is reportedly considering an initial public offering (IPO) in the US. According to a new report by Bloomberg, anonymous sources familiar with the matter say that Genesis Digital Assets, which is backed by Alameda Research, is currently working with advisors on the potential listing. […]
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Though Sam Bankman-Fried is currently serving a prison sentence, affected FTX customers and creditors are making claims on the firm’s assets, which are still worth millions.
Different groups have filed competing claims over some or all of the assets at issue in the criminal case against former FTX CEO Sam Bankman-Fried, who is currently serving a 25-year sentence in federal prison.
In a June 14 filing in the United States District Court for the Southern District of New York, lawyers representing the FTX debtors and the firm’s Bahamian entity, FTX Digital Markets, argued that they had a “superior right” to assets that may be used to satisfy the court’s $11-billion judgment against Bankman-Fried. The legal team claimed that FTX’s aircraft, funds held at Signature Bank, Farmington State Bank and Silvergate Bank, the sale of shares of Robinhood stock and political contributions associated with former FTX executives should not be used for Bankman-Fried’s judgment but to benefit victims of the defunct exchange.
“Amending the Preliminary Forfeiture Order to provide for the return the Specific Property to the Debtors and/or FTX Digital will benefit all the creditors and stakeholders in the Debtors’ Chapter 11 bankruptcy proceedings and FTX Digital’s liquidation in The Bahamas, including victims of Bankman-Fried’s crimes,” said the June 14 filing. “Distributing the value of the Specific Property to the more than 1 million victims of BankmanFried’s criminal scheme is no small feat, and doing so through the Debtors’ existing claims administration architecture and processes will maximize the funds available for distribution by minimizing the incremental administrative and professional costs.”
Records show Sam Bankman-Fried was in the Federal Transfer Center in Oklahoma City, suggesting authorities may still transfer him to a prison in California.
Former FTX CEO Sam “SBF” Bankman-Fried is no longer incarcerated in New York or California, where his parents own a home — according to prison records, he’s in Oklahoma.
As of May 23, inmate records for the Federal Bureau of Prisons showed that Bankman-Fried was being held at the Federal Transfer Center in Oklahoma City. According to the Office of the Inspector General for the U.S. Department of Justice, the facility confines inmates on a “short-term basis” for transfers within the prison system.
SBF’s relocation to Oklahoma, coupled with reports from May 22, suggested that authorities may transfer the former FTX CEO from the Metropolitan Detention Center (MDC) in Brooklyn to the Federal Correctional Institution (FCI) in Mendota. The transfer appeared to have happened despite Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York recommending SBF stay at MDC Brooklyn.
Ten days ago, the FTX estate overseeing the bankrupt company’s proceedings informed customers they would receive more than 100% repayment. Following this announcement, the exchange token FTT from the defunct trading platform rose above $2 per unit. Astonishingly, despite being tied to a failed crypto exchange, this token still holds a market valuation of $535 […]
Sam Trabucco, who resigned as co-CEO of Alameda Research in August 2022, has largely remained absent from the public eye since the collapse of FTX.
Former Alameda Research co-CEO Sam Trabucco, who resigned from the company before the collapse of cryptocurrency exchange FTX and criminal charges for many of its executives, has called for leniency in sentencing former FTX Digital Markets co-CEO Ryan Salame.
In a character reference letter dated May 6, filed with a sentencing recommendation in the United States District Court for the Southern District of New York, Trabucco said Salame was his best friend and wanted the consequences of his criminal actions to be “fair” based on his role in misappropriating FTX user funds. He described his friendship with Salame based on their shared experiences in the crypto space and working with former FTX CEO Sam “SBF” Bankman-Fried.
In September 2023, Salame pleaded guilty to conspiracy to operate an unlicensed money transmitting business and engaging in campaign finance fraud related to contributions to his girlfriend Michelle Bond’s run for Congress. According to Trabucco, Bond and Salame now have a son together, and any time in prison could harm his relationship with his family.
The former FTX Digital Markets co-CEO pleaded guilty to two felonies and was one of the only figures connected with the defunct crypto exchange who didn’t testify at SBF’s trial.
Lawyers representing Ryan Salame have requested the former co-CEO of FTX Digital Markets be sentenced to no more than 18 months in prison.
In a May 14 filing with the United States District Court for the Southern District of New York, Salame’s legal team argued that in addition to the “substantial restitution and forfeiture obligations” offered by the former FTX executive, a sentence of no more than 18 months in prison was “appropriate.” Salame pleaded guilty to conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud in September 2023 and is scheduled to be sentenced by Judge Lewis Kaplan on May 28.
“[Salame] had absolutely no knowledge that the four people at the center of Alameda and FTX had conspired to lie and steal from their customers,” his lawyers claimed in the May 14 sentencing memo. “Ryan stole from no one. He did not lie to customers. And he was duped, as was everyone else, into believing that the companies were legitimate, solvent, and wildly profitable.”
The bankrupt crypto exchange FTX now has holdings worth billions of dollars more than the legally approved claims made by its creditors. A recently filed disclosure statement indicates that FTX’s bankruptcy estate estimates it will hold net distributable proceeds between $14.5 billion and $16.3 billion on September 30th, the projected start date for the exchange’s […]
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Under the yet-to-be-approved plan, 98% of FTX creditors will get overpaid on their claims and the bankrupt exchange has more money than it needs to repay customers.
FTX plans to fully repay all its creditor’s claims plus “billions in compensation for the time value of their investments” with 98% slated to get up to 118% back — only for those claiming $50,000 or under.
In a May 7 statement, the bankrupt crypto exchange said the plan was “subject to being finalized and approved” by a Delaware Bankruptcy Court.
Only creditors holding claims in an allowed amount below $50,000 will be eligible for the 118% recovery, which FTX anticipated was “98% of the creditors of FTX by number.”
One former CEO went to trial and maintained his innocence, one admitted fault and turned himself in.
Two figures once considered to be Titans in the crypto industry are going to prison in the United States for drastically different amounts of time.
Since the sentencing hearings for former FTX CEO Sam “SBF” Bankman-Fried and former Binance CEO Changpeng “CZ” Zhao, many in and out of the crypto space have questioned why the two industry leaders have received such different treatment in the U.S. legal system. Bankman-Fried could be in his fifties by the time he leaves prison and will likely have fewer assets than Zhao, who will be out of prison by the end of the year and, according to Forbes, has an estimated net worth of $33 billion.
But let’s back up a minute.
JPMorgan Chase CEO Jamie Dimon has reiterated his critical stance on bitcoin, labeling it a fraud and dismissing its potential as a legitimate currency. Former FTX CEO Sam Bankman-Fried has agreed to a settlement that involves cooperating with legal actions against celebrities linked to FTX’s collapse. U.S. analysts are evaluating the impact of the proposed […]