DOJ and SEC to probe SVB collapse and insider stock sales: Report
The investigations are separate from one another but will both look into Silicon Valley Bank’s collapse and stocks sold by executives prior to its fall.
Čítaj viacUverejnil používateľ Cointelegraph By Felix Ng | mar 15, 2023 |
The investigations are separate from one another but will both look into Silicon Valley Bank’s collapse and stocks sold by executives prior to its fall.
Čítaj viacUverejnil používateľ Cointelegraph By Felix Ng | mar 15, 2023 |
The platform said “things are back in order” after it identified and fixed an internal systems issue that took its website offline for almost six hours.
Čítaj viacUverejnil používateľ Cointelegraph By Felix Ng | nov 30, 2022 |
Former FTX CEO Sam Bankman-Fried has claimed to have “unknowingly commingled funds” between Alameda and customer funds at FTX.Bankman-Fried was speaking at the New York Times’ DealBook Summit via video conference on Nov. 30, in which journalist Andrew Sorkin noted “there appears to be a genuine commingling of the funds that are FTX customers that were not supposed to be commingled with your separate firm.”Sam Bankman-Fried speaking at the New York Times’ DealBook Summit. Source: New York TimesBankman-Fried denied knowing about the commingled funds and blamed it on poor oversight. “I unknowingly commingled funds […] I was frankly surprised by how big Alameda’s position was which points to another failure of oversight on my part and failure to appoint someone to be chiefly in charge of that,” said Bankman-Fried, adding: “But I wasn’t trying to comingle funds.”Bankman-Fried also appeared to deflect blame for the actions of Alameda. “I wasn’t running Alameda, I didn’t know exactly what [was] going on. I didn’t know the size of their position.”The crypto exchange famously imploded in early November as a result of a liquidity crisis, leading to a halting of customer withdrawals. It filed for bankruptcy days later on Nov. 11. It is alleged that much of the liquidity crisis was due to Alameda using client funds to cover a loans that were being recalled due to the credit crunch caused by the collapse of LUNA. This is a developing story and more information will be added as it becomes available.
Čítaj viacUverejnil používateľ Cointelegraph By Felix Ng | nov 30, 2022 |
Former FTX CEO Sam Bankman-Fried has been called to a Feb. 2 hearing by the Texan securities regulator as part of an investigation into whether he and FTX US have violated Texas securities laws. In a Notice of Hearing signed off by Texas State Securities Board’s (SSB’s) director of enforcement Joe Rotunda and served to Bankman Fried on Nov. 29, the regulator alleges that FTX US offered unregistered securities to Texans through its “EARN” accounts.The investigation was first announced on Oct. 14, before the dramatic collapse and bankruptcy of FTX’s global operations. The regulator announced at the time it was investigating FTX Trading and FTX US and its principals including Sam Bankman-Fried for offering unregistered securities through its yield-bearing products. On Nov. 18, Rotunda used Twitter to appeal to the public to reach out to him if they were a previous client of FTX and based in Texas.If you’re a client if @FTX_Official and you live in Texas, please reach out to me. We want to hear your story. My Texas State Securities Board email address is jrotunda@ssb.texas.gov.— Joe Rotunda (@joe_rotunda) November 18, 2022In the latest notice, the SSB alleged that Sam Bankman-Fried violated a section of the Securities Act during his role as the then-CEO of FTX. “Respondent [Sam Bankman-Fried] violated Section 4003.001 of the Securities Act by offering and selling securities in Texas that were not registered or permitted for sale in Texas,” said Rotunda, adding it also didn’t register as a dealer or agent in Texas. The regulator said it hoped that the hearing will lead to a Cease and Desist order to prevent FTX from “engaging in fraud in connection with the offer or sale of securities in Texas.”It was also “praying” for the judge to order Bankman-Fried to return money to Texan customers that had invested in its “unregistered EARN accounts.”The regulator also wants consideration of an “administrative fine” to be issued to Bankman-Fried should he have gained any economic benefit from the securities law violations. This amount wouldn’t exceed $20,000 per violation but could go to $250,000 for every “illegal or fraudulent act” that was perpetrated against Texans over the age of 65. Rotunda said the hearing will commence at 9am local time on Feb. 2, 2023, and Bankman-Fried can attend the hearing using Zoom. Related: ‘I never opened the code for FTX’: SBF has long, candid talk with vloggerBankman-Fried is understood to currently be in the Bahamas. In a recently published interview between crypto blogger Tiffany Fong and Bankman-Fried, the former FTX CEO expressed remorse over his handling of FTX and the bankruptcy filing. “You don’t get into the situation we got in if you, like, make all the right decisions,” he said in the recently released Nov. 16 interview.
Čítaj viacUverejnil používateľ Cointelegraph By Felix Ng | nov 30, 2022 |
FTX’s former CEO Sam Bankman-Fried has divulged what really went on in the days before it filed for bankruptcy when the exchange selectively reopened withdrawals — only for Bahamian users. In a telephone interview with crypto blogger Tiffany Fong, dated Nov. 16, Bankman-Fried claims to have made the decision to reopen withdrawals to Bahamian citizens as he did not want himself, nor the exchange, to be in a country “with a lot of angry people in it.” “The reason I did it was it was critical to the exchange being able to have a future because that’s where I am right now, and you do not want to be in a country with a lot of angry people in it and you do not want your company to be incorporated in a country with a lot of angry people in it,” he said. Bankman-Fried claims he gave Bahamian securities regulators a “one-day heads up” that FTX was going to do it, but said the regulator neither responded with a “yes or no,” before he ultimately decided to go ahead with allowing withdrawals. “So it was realistically speaking, it’s shitty, but […] the pathway for FTX involved Bahamians not being pissed at it.”The now-defunct crypto exchange initially halted all withdrawals on Nov. 8 as a result of liquidity issues. On Nov. 10, only a day before it filed for bankruptcy, the exchange noted it had begun to facilitate withdrawals of Bahamian funds. At the time, it claimed that it was in compliance with the demands of the country’s regulators — leading to millions of dollars worth of funds extracted from the exchange. However, the Securities Commission of The Bahamas (SCB) threw a wrench into FTX’s narrative, stating on Nov. 12 that it had neither instructed nor authorized FTX to prioritize withdrawals of Bahamian clients.They also warned that any withdrawal of funds could be clawed back as part of the firm’s liquidation proceedings.Cointelegraph contacted the SCB for confirmation on if it had received communication from FTX prior to the exchange’s withdrawals reopening, and what its response was at the time. The SCB did not immediately respond.Audio from my first interview with Sam Bankman-Fried. SBF talks bankruptcy, the alleged “backdoor,” donations to the Democratic Party, Ukraine money laundering rumors, the hack, Alameda’s margin position on FTX, using FTT as collateral & more. https://t.co/qVfUv6dhww— Tiffany Fong (@TiffanyFong_) November 29, 2022In his most recent interview with Fong, Bankman-Fried denied the move was to facilitate withdrawals by people within FTX after Fong suggested that this is how it was being seen.“Oh it wasn’t insider withdrawals, this was trying to create a regulatory pathway forward for the exchange.”SBF was hot on FTX hacker’s trail The former FTX CEO also noted during the Nov. 16 interview that he was close to finding out the identity of the FTX hacker, who is understood to have stolen over $450 million worth of assets soon after the exchange filed for bankruptcy on Nov. 11.“I don’t know exactly who because they shut off all access to the systems when I was halfway through exploring it. I’ve narrowed it down to eight people. I don’t know which one it was but I have a pretty decent sense.”Bankman-Fried said he believes it was “either an ex-employee or somewhere someone installed malware on an ex-employee’s computer.” Related: ‘I never opened the code for FTX’: SBF has long, candid talk with vloggerIn a separate, more recent interview with Sam Bankman-Fried by Axios on Nov. 29, the former FTX CEO has revealed he only has around $100,000 left in his bank account as of today. This is despite Bankman-Fried being worth an estimated $26 billion at his peak.Bankman-Fried claims that he had “basically everything” tied up in the now-bankrupt company. “I mean, I have no idea. I don’t know. I had $100,000 in my bank account last I checked,” he said.
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