Sam Bankman-Fried posts detailed protection on-line whereas underneath home arrest: ‘I did not steal funds, and I definitely did not stash billions away’

By Frances Yue

Sam Bankman-Fried, co-founder and former chief government of bankrupt crypto trade FTX, is again on-line, reviving his protection by way of a brand new public discussion board, whereas underneath home arrest at his dad and mom’ residence in California.

Bankman-Fried on Thursday launched a channel on SubStack, a platform that helps subscription newsletters. In a weblog titled “FTX Pre-Mortem Overview” on Thursday, Bankman-Fried wrote that “I did not steal funds, and I definitely did not stash billions away.”

The ex-billionaire pleaded not responsible to U.S. federal prison fees final week and is about to face a trial in October in what may very well be some of the high-profile white-collar fraud circumstances lately.

Within the SubStack publish Thursday, Bankman-Fried mentioned the collapse of FTX’s affiliate buying and selling agency Alameda analysis was on account of its failure to hedge its publicity within the crypto market crash and assaults by FTX’s rival Binance. He additionally mentioned he hasn’t run Alameda for the previous few years.

“All of which is to say: no funds have been stolen. Alameda misplaced cash on account of a market crash it was not adequately hedged for,” Bankman-Fried wrote.

“If FTX had been given a number of weeks to lift the required liquidity, I imagine it could have been capable of make clients considerably complete,” Bankman-Fried wrote, reiterating his earlier protection on Twitter.

Among the arguments contradict fees by federal prosecutors and media stories. The Wall Avenue Journal reported earlier that FTX lent billions of {dollars}’ value of buyer belongings to Alameda whereas the crypto trade’s chief government and senior officers knew of using buyer funds.

Caroline Ellison, former chief government of Alameda Analysis, and Gary Wang, co-founder founding father of FTX, has pleaded responsible to federal prison fraud fees and are cooperating within the prosecution of Bankman-Fried. Nishad Singh, FTX’s former director of engineering, additionally met with federal prosecutors earlier this week, in accordance with a report by Bloomberg.

FTX has recovered over $5 billion in money, liquid cryptocurrency and liquid funding securities, a FTX lawyer informed a Delaware decide Wednesday.

See additionally: FTX says it recovers $5 billion in belongings as the previous crypto big continues chapter course of

-Frances Yue


(END) Dow Jones Newswires

01-12-23 1113ET

Copyright (c) 2023 Dow Jones & Firm, Inc.

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