FTX founder Sam Bankman-Fried allegedly colluded with other top executives to obscure billions in Alameda liability on the now bankruptcy crypto exchange. The findings made by the U.S. Commodities Futures Trading Commission (CFTC) said SBF diverted his trading firm\u2019s liability to a \u201cweird Korean account\u201d.<\/p>\n\n\n\n
According to the CFTC, Alameda Research blew up around May\/June 2022 after the firm failed to meet margin calls and loan obligations. Crypto prices slumped around the same time due to Terra\u2019s implosion. Celsius and Three Arrows Capital also collapsed shortly after, further crippling crypto asset prices and triggering mass liquidations. <\/p>\n\n\n\n
Sam Bankman-Fried told FTX executives to re-engineer Alameda\u2019s assets and liabilities to \u201cthe weird Korean account\u201d or \u201cour Korean friend\u2019s account\u201d, per the CFTC\u2019s filing. At the time, Alameda Research’s liabilities on the crypto exchange were estimated at $8 billion. <\/p>\n\n\n\n
A separate report<\/a> from Bloomberg alleged that Nishad Singh oversaw this process. Singh\u2019s Github account deployed code linked to the so-called \u201cKorean Account\u201d. Sources previously claimed that SBF and Singh were in charge of the code used at the crypto exchange. <\/p>\n\n\n\n Alameda was afforded nigh-uncapped lending privileges via the Korean account, the CFTC filed. The federal regulator also alleged that an \u201callow negative flag\u201d line of code allowed <\/a>Alameda to trade assets without actually holding sufficient funds or balances. <\/p>\n\n\n\n Three U.S. authorities charged former FTX CEO Sam Bankman-Fried with fraud and money laundering. Following his arrest on December 13, the U.S. prosecutors from the Southern District of New York (SDNY), the Securities and Exchange Commission (SEC<\/a>), and the CFTC all filed charges <\/a>against SBF. <\/p>\n\n\n\n The bankrupt crypto tycoon was remanded at the Bahamas Department of Correctional Services (BDOCS) after a judge denied him bail. SBF will appear before a judge on February 8, 2023, as part of the prosecution and extradition process.\u00a0<\/p>\n\n\n\n FTX Founder Sam Bankman-Fried told Nishad Singh to divert Alameda liabilities to FTX to a weird Korean account, per CFTC filings. <\/p>\n","protected":false},"author":55,"featured_media":580151,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[108429,7704,108361],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/580147"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=580147"}],"version-history":[{"count":4,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/580147\/revisions"}],"predecessor-version":[{"id":580153,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/580147\/revisions\/580153"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/580151"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=580147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=580147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=580147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}FTX Founder Under Fire From CFTC, DOJ, and SEC<\/h2>\n\n\n\n
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