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☆ FTX's victims may get all their money back. The judge sentencing Sam Bankman-Fried might not care.
▼ + stars: | 2024-03-24 | by ( Jacob Shamsian | ) www.businessinsider.com time to read: +12 min

Sam Bankman-Fried bilked FTX customers out of over $8 billion, according to prosecutors. AdvertisementAccording to federal prosecutors, Sam Bankman-Fried orchestrated one of the biggest criminal frauds in the history of the world. According to his lawyers, FTX's customers might get all their money back. According to prosecutors, Bankman-Fried was responsible for more than $11 billion in fraud overall between FTX customers and investors in FTX and Alameda Research. The recovered calculations, too, distort how much money customers are actually getting back.

Persons: Sam Bankman, —, Fried, FTX, John J, Ray III, Ray, Lewis Kaplan, Kaplan, Sarah Krissoff, Cozen O'Connor, Krissoff, it's, Sarah Silbiger, Bankman, bitcoin, Rachel Maimin, Lowenstein Sandler, Barbara Fried, Mark Cohen, Jane Rosenberg Bankman, Maiman, Maimin, Caroline Ellison Organizations: Service, FTX, Bankman, Alameda Research, US, United States, Second Circuit, U.S . House Financial, Capitol, Reuters, K5 Global, Prosecutors, Wall, REUTERS, Business, of Prisons, Alemda Research Locations: FTX, Manhattan, New Jersey, New York, Washington , U.S

(AP) — A federal appeals court has ordered the appointment of an independent examiner in the bankruptcy case of FTX amid concerns about widespread fraud preceding the collapse of the multibillion-dollar cryptocurrency exchange. A three-judge panel in Philadelphia issued the ruling Friday in an appeal filed by the U.S. bankruptcy trustee, who serves as a government watchdog in Chapter 11 reorganizations. U.S. Bankruptcy Judge John Dorsey denied the trustee’s request last February. The appeals court reversed Dorsey’s ruling, agreeing with the trustee that the bankruptcy code mandates the appointment of an examiner. “Such is the case here.”Restrepo also noted that an examiner is required to make his or her findings public, whereas a debtor or creditors committee conducting an internal investigation has no such obligation.

Persons: John Dorsey, Dorsey, John Ray III, FTX, Sam Bankman, Fried, Prosecutors, ”, Luis Felipe Restrepo, ” Restrepo Organizations: —, U.S, FTX, Alameda Research Locations: Del, Philadelphia, FTX

☆ FTX Sues Crypto Exchange Bybit to Recover $953 Million in Cash and Assets
▼ + stars: | 2023-11-14 | by ( Becky Yerak | ) www.wsj.com time to read: 1 min

Bybit operates one of the world’s largest cryptocurrency trading exchanges. Photo: karim sahib/Agence France-Presse/Getty ImagesBankrupt cryptocurrency exchange FTX has filed a lawsuit against Bybit Fintech and two affiliates to try to claw back assets valued at $953 million that were withdrawn shortly before FTX’s November 2022 collapse. The lawsuit, filed Friday in the U.S. Bankruptcy Court in Wilmington, Del., alleges that Bybit’s investment arm, Mirana, “leveraged its VIP connections to pressure FTX group employees to fulfill its withdrawal requests as soon as assets became available.”

Persons: Bybit, karim sahib, FTX, Bybit Fintech Organizations: Agence France, Getty, Bankruptcy Locations: U.S, Wilmington, Del

☆ Anna Wintour's furious staff said Sam Bankman-Fried would 'never step foot in fashion again' after he snubbed her Met Gala invite
▼ + stars: | 2023-10-03 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Anna Wintour invited Sam Bankman-Fried to the Met Gala during a Zoom meeting on Valentine's Day 2022. Wintour's team were furious when he ultimately snubbed the invite, per Michael Lewis' new book about FTX. After the meeting Bankman-Fried thought: "'I would have to think hard if this is a thing I want to go to,'" per the excerpt. Bankman-Fried ultimately decided not to go, but it was FTX's former head of public relations, Natalie Tien, who had to deal with the fallout with Wintour's team. AdvertisementAdvertisementLewis wrote: "Natalie was prepared for Anna Wintour's people to be disappointed when she told them that Sam wouldn't be there.

Persons: Anna Wintour, Sam Bankman, Fried, Michael Lewis, —, Anna Wintour's, FTX's, Wintour, didn't, Lewis, Louis Vuitton, Tom Ford, Natalie Tien, Natalie, Sam wouldn't, Sam, FTX Organizations: Valentine's, Service, Beverly Hilton, CBS, Alameda Research Locations: Los Angeles, America, Alameda

☆ Sam Bankman-Fried's parents are embroiled in the crypto exchange's troubles. Here's what we know about the Stanford Law professors.
▼ + stars: | 2023-09-22 | by ( Grace Dean | Huileng Tan | ) www.businessinsider.com time to read: +2 min

FTX has sued Sam Bankman-Fried's parents, seeking to recover millionsBarbara Fried and Joseph Bankman. Michael M. Santiago/Getty ImagesFTX co-founder Sam Bankman-Fried has been embroiled in legal troubles since the collapse of the cryptocurrency exchange in November. Now, Bankman-Friend's parents — longtime Stanford law professors Joseph Bankman and Barbara Fried — are caught up in FTX's troubles too. The complaint filed in the collapsed cryptocurrency exchange's bankruptcy case in Delaware seeks to recover some damages from Bankman and Fried. Legal representatives for Bankman and Fried did not immediately to a request for comment from Insider sent outside regular business hours.

Persons: FTX, Sam Bankman, Barbara Fried, Joseph Bankman, Michael M, Fried, —, Barbara Fried —, Joe, Barbara Organizations: Stanford, FTX, Bankman, Associated Press Locations: Bahamas, Delaware

☆ Sam Bankman-Fried's dad emailed his son that he didn't know 'what to say' after finding he'd be paid $200,000 instead of $1 million by FTX — then looped in SBF's mom, lawsuit claims
▼ + stars: | 2023-09-20 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried's dad was not happy about his $200,000 salary at now-bankrupt crypto firm FTX, a lawsuit claims. In emails cited in the lawsuit, Joseph Bankman said he believed he would be paid $1 million by FTX. He then looped in Barbara Fried, his partner and Bankman-Fried's mom. Bankman and Fried enjoyed the benefits of more than $90,000 in expenses, paid for by FTX Trading, for their Bahamas residence." FTX group and Bankman-Fried's trading firm Alameda Research filed for bankruptcy in November 2022 with the founder stepping down from his role as CEO.

Persons: Sam Bankman, Joseph Bankman, Barbara Fried, FTX, Bankman, Fried, Gee, Sam, Barbara, Sean Heckler, Michael Tremonte, Joe Organizations: FTX, Service, Alameda Ltd, Stanford University, Alameda Research Locations: Wall, Silicon, FTX, Alameda, Bahamas

☆ Stanford University says it will return the 'entirety' of millions of dollars in gifts it received from bankrupt crypto firm FTX
▼ + stars: | 2023-09-20 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Stanford University has said it plans to return millions of dollars in gifts it received from FTX. According to a lawsuit, the university received $5.5 million from the now-bankrupt crypto firm. Co-founder Sam Bankman-Fried's parents both held teaching roles at the prestigious California university. A spokesperson for Stanford University responded to the lawsuit in an emailed statement to Bloomberg: "Stanford received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research." AdvertisementAdvertisementInsider contacted Stanford University for comment but did not immediately hear back outside of regular working hours

Persons: Sam Bankman, — Allan Joseph Bankman, Barbara Fried, Bankman, Stanford, Fried Organizations: Stanford University, Service, Bloomberg News, CNN, Stanford, FTX Group, Bloomberg, FTX Foundation, FTX, Alameda Research Locations: FTX, California, Wall, Silicon, Bahamas, Brooklyn

☆ Stanford University says it will return all gifts from bankrupt crypto exchange FTX
▼ + stars: | 2023-09-19 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +2 min

New York CNN —Stanford University said it will be returning gifts it received from bankrupt crypto exchange FTX “in their entirety,” after a lawsuit against founder Sam Bankman-Fried’s parents alleged the school received millions of dollars in donations. The school said it received the gifts from the FTX Foundation and its related companies “for pandemic-related prevention and research,” a Stanford spokesperson said. “We have been in discussions with attorneys for the FTX debtors to recover these gifts and we will be returning the funds in their entirety,” the spokesperson said. Bankman donated more than $5.5 million in FTX Group donations to his employer, Stanford University, the lawsuit alleges. FTX went bankrupt last November as questions about its finances rattled crypto markets and prompted a sudden, massive drawdown of customer funds.

Persons: Sam Bankman, ”, “, FTX, Joe Bankman, Barbara Fried, Bankman, Fried, Joe, Barbara Organizations: New, New York CNN — Stanford University, FTX Foundation, Stanford, FTX Group, Stanford University Locations: New York

☆ Sam Bankman-Fried's parents are accused of siphoning millions of dollars from FTX
▼ + stars: | 2023-09-19 | by ( Will Gendron | Associated Press | ) www.businessinsider.com time to read: +5 min

The fallout of FTX's implosion continues, with Sam Bankman-Fried's parents now facing a lawsuit. Barbara Fried and Allan Joseph Bankman were accused of siphoning millions of dollars from the firm. FTX entered bankruptcy in November when the global exchange ran out of money after the equivalent of a bank run. "And together, Bankman and Fried siphoned millions of dollars out of the FTX Group for their own personal benefit and their chosen pet causes." Mr. Ray and his massive team of lawyers, who are collectively running up countless millions of dollars in fees while returning relatively little to FTX clients, know better."

Persons: Sam Bankman, Barbara Fried, Allan Joseph Bankman, SBF's, FTX, Fried, Bankman, John Ray III, Joe, Barbara, Ray Organizations: Service, FTX, Stanford University, Alameda Research, Stanford, FTX Group, Bankman Locations: Wall, Silicon, Bahamas, Delaware, Manhattan, Alameda, FTX, Brooklyn

FTX entered bankruptcy in November when the global exchange ran out of money after the equivalent of a bank run. Several other former FTX executives have pleaded guilty to fraud and conspiracy charges and are cooperating with investigators. The scheme involved Bankman-Fried receiving a loan from Alameda, then transferring the money to his parents. According to FEC records, Singh contributed roughly $9.7 million in 2022 and in late 2020 to various candidates and committees. The judge revoked Bankman-Fried’s bail last month after finding probable cause that he had tampered with witnesses.

Persons: Sam Bankman, ”, Allan Joseph Bankman, Barbara Fried, FTX, Fried, Bankman, ’, “ Bankman, John Ray III, Joe, Barbara, Ray, “ Fried, Nishad Singh, ” Singh, Singh, Ryan Salame Organizations: —, FTX, Stanford University, Alameda Research, Stanford, FTX Group, Bankman, FEC, FTX Digital Markets Locations: Del, Bahamas, Delaware, Manhattan, Alameda, FTX

☆ FTX accuses Sam Bankman-Fried's mother of being key advisor to son on political contributions
▼ + stars: | 2023-09-19 | by ( Brian Schwartz | ) www.cnbc.com time to read: +5 min

The complaint, filed on Monday by the now-bankrupt crypto exchange FTX, accuses Barbara Fried of being a "point person" for her son Bankman-Fried's "political contribution strategy." Attorneys for Fried and her husband, Sam Bankman, told CNBC that "these [FTX] claims are completely false." Fried, according to the FTX complaint, described "herself as Bankman-Fried's 'partner in crime of the noncriminal sort.' In 2021, it received a $1 million donation in the name of former FTX director of engineering Nishad Singh, according to Federal Election Commission records. That contribution may not have been from Singh himself, but instead, from Bankman-Fried, according to the complaint.

Persons: Barbara Fried, FTX, Sam Bankman, Bankman, Fried, Nishad Singh, Singh, Sam, MTG, dunning, backstop Organizations: Manhattan Federal Court, Group, CNBC, Bankruptcy, Stanford Law, FTX Group, Commission, FTX Locations: New York City, U.S, Delaware, Fried, Manhattan, Bankman

☆ FTX sues Sam Bankman-Fried’s parents
▼ + stars: | 2023-09-19 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

New York CNN —Bankrupt crypto exchange FTX is suing founder Sam Bankman-Fried’s parents, accusing them of siphoning millions of dollars in company funds to enrich themselves and their “pet causes.”The lawsuit aims to recover funds that the company claims were “fraudulently transferred and misappropriated” by Bankman-Fried’s parents. FTX collapsed into bankruptcy in November last year as questions about its finances rattled crypto markets and prompted a sudden, massive drawdown of customer funds. Despite Bankman-Fried’s assertions that his parents weren’t involved in “any of the relevant parts” of FTX, the lawsuit claims that his parents played a role from the beginning. She described herself as her son’s “partner in crime of the noncriminal sort,” the lawsuit claims. In April, FTX told the bankruptcy court it had recovered $7.3 billion in assets.

Persons: Sam Bankman, “, Joe Bankman, Barbara Fried, Fried, Joe, Barbara, FTX, weren’t, Bankman, …, ” Fried, Fried’s, John J, Ray III, ”, Ray Organizations: New, New York CNN, Stanford, Southern, of, Bankman, FTX Group, Super Bowl, Alameda Research Locations: New York, of New York, Bahamas, FTX

☆ FTX sues Sam Bankman-Fried's parents, aims to claw back some of the $26 million in gifts and property
▼ + stars: | 2023-09-19 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +5 min

Barbara Fried, mother of Sam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, leaves the courthouse, after a U.S judge revoked Bankman-Fried's bail, New York, Aug. 11, 2023. Bankrupt crypto exchange FTX is looking to claw back luxury property and "millions of dollars in fraudulently transferred and misappropriated funds" from the parents of Sam Bankman-Fried, the exchange's disgraced ex-CEO and founder. The filing characterizes the correspondence as Bankman lobbying his son to "massively increase his own salary." Bankman-Fried himself independently faces multiple wire and securities fraud charges related to the alleged multibillion-dollar FTX fraud. Bankman and Fried "either knew — or ignored bright red flags revealing — that their son, Bankman-Fried, and other FTX Insiders were orchestrating a vast fraudulent scheme," the lawsuit said.

Persons: Barbara Fried, Sam Bankman, Allan Joseph Bankman, Fried, Sam's, Bankman, Gee, Sam, Barbara, Damian Williams, Joe, Ray Organizations: Bankruptcy, District of, FTX, Administration, Stanford University, Group, Stanford Law School, The U.S . Department of Justice, Bankman, CNBC Locations: New York, U.S, District of Delaware, Bahamas, Alameda, The, Manhattan, Bankman

☆ FTX managed to get $400 million in funding after Sam Bankman-Fried and an attorney invented a 'sham' agreement to explain close ties with Alameda, new CEO says
▼ + stars: | 2023-06-27 | by ( Pete Syme | ) www.businessinsider.com time to read: +2 min

Sam Bankman-Fried and an FTX attorney created a false document to explain close relations with Alameda, its CEO said. The false agreement was then shown to investors as part of FTX's $400 million Series C fundraising, the CEO said. FTX managed to raise $400 million in funding while showing false documents to investors, according to the crypto exchange's new CEO. This is a particularly interesting detail because the crypto exchange's implosion last November was provoked by the apparent commingling of funds between FTX and Alameda. for the benefit of the FTX customers,'" the document says.

Persons: Sam Bankman, FTX, John J Ray III, Fried, Ray Organizations: Morning, Alameda Locations: Alameda, FTX's, Delaware, FTX

☆ Failed crypto exchange FTX's spectacular collapse was due to 'hubris, incompetence, and greed,' says first debtors' report
▼ + stars: | 2023-04-10 | by ( Huileng Tan | ) www.businessinsider.com time to read: +6 min

On Sunday, its debtors released their first report on the collapse of the crypto exchange. The report alleged a lack of controls including in management, governance, and accounting. Read further for the three key allegations from the debtors' report. The report alleged the management and governance of FTX were largely limited to Bankman-Fried, Singh, and Wang. The report also alleged FTX failed to put in place "basic, widely accepted" security controls to safeguard its crypto assets.

☆ From threatening skeptical execs to approving expenses with emojis, here are the 6 most damning claims from FTX's first debtors report
▼ + stars: | 2023-04-10 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +7 min

Sam Bankman-Fried threatened FTX employees who voiced concerns about its business practices. The report, which is 45 pages long, compiled interviews of 19 former FTX employees and "received substantial information through counsel" for five others. 1) SBF threatened FTX execsMultiple FTX execs were threatened after voicing concerns over the company's business practices. As a result, the report says: "Senior FTX Group personnel scrambled to cobble together purported policies that could be shown to auditors. One former executive described Singh's and Wang's oversight on FTX Group as: "If Nishad [and Gary] got hit by a bus, the whole company would be done."

☆ Sam Bankman-Fried has serious beef with FTX's new boss, John Ray III
▼ + stars: | 2023-01-20 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

John Ray, CEO of FTX Group, described a litany of amateurish business practices used to run the multibillion-dollar exchange. This much we know for certain: Sam Bankman-Fried and FTX's new boss, John Ray III, are not each other's biggest fans. From their comments, we can see that they disagree on how to run a company, where certain cash went, and who can repay who. It doesn't take a stoic to make Bankman-Fried look chatty, given the extensive media tour he embarked on after FTX went under. And strangely, as the boss and former boss duke it out, FTX's native token FTT is quietly skyrocketing again.

☆ Judge in FTX bankruptcy case rejects motion to remove elite NYC lawyers
▼ + stars: | 2023-01-20 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

New York CNN —One of America’s elite white-collar law firms has emerged as a contentious figure in the complex FTX saga. A judge ruled that the bankrupt crypto platform could retain Sullivan & Cromwell as legal counsel, overruling objections from FTX customers who accused the firm of conflicts of interest. Then FTX’s former top lawyer supported the motion in a court filing, which included additional allegations that one of his former colleagues improperly funneled FTX business to Sullivan & Cromwell. Friedberg alleged that that lawyer funneled business to Sullivan & Cromwell, hoping to curry favor with the firm to which he hoped to eventually return. Earlier this month, a group of US senators also raised objections to Sullivan & Cromwell’s participation in the FTX bankruptcy.

The U.S. Commodities Futures Trading Commission has estimated missing customer funds at more than $8 billion. The affiliates -- LedgerX, Embed, FTX Japan and FTX Europe -- are relatively independent from the broader FTX group, and each has its own segregated customer accounts and separate management teams, according to FTX court filings. In part to preserve the value of its businesses, FTX also sought Dorsey's approval to keep secret 9 million FTX customer names. Dorsey allowed the names to remain under wraps for only three months, not six months as FTX wanted. In addition to customer funds lost, the collapse of the company has also likely wiped out equity investors.

☆ U.S. Trustee files objection to FTX's planned asset sales
▼ + stars: | 2023-01-07 | by ( ) www.reuters.com time to read: +1 min

Trustee filed an objection on Saturday to plans by bankrupt crypto exchange FTX to sell its digital currency futures and clearinghouse LedgerX, as well as units in Japan and Europe, according to a court filing. FTX filed for bankruptcy protection in November and said last month it planned to sell its LedgerX, Embed, FTX Japan and FTX Europe businesses. Trustee Andrew Vara called for an independent investigation before the sale of the units, arguing that the companies may have information related to FTX's bankruptcy. FTX said in a court filing last month that the companies it planned to sell are relatively independent from the broader FTX group, and that each has its own segregated customer accounts and separate management teams. Reporting by Anirudh Saligrama in Bengaluru Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ FTX customers filed a class-action lawsuit against the failed crypto exchange to get their lost money back
▼ + stars: | 2022-12-28 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

FTX customers filed a class-action lawsuit against the firm to claim back their money on Tuesday. Four plaintiffs filed the class-action on behalf of millions of former FTX customers saying that the firm's digital assets belong to customers and that they deserve priority access to those funds, according to the lawsuit filed in the US Bankruptcy Court in Delaware. The class-action wants a declaration that FTX assets traceable to customers are not the company's property, and that Alameda assets traceable to customers should not be considered Alameda property. The lawsuit also named top FTX and Alameda Research executives including Zixiao Wang, Nishad Singh, and Caroline Ellison as defendants. Bankman-Fried was hit with eight criminal charges including fraud and money laundering in December after being arrested.

Dec 27 (Reuters) - FTX customers filed a class action lawsuit against the failed crypto exchange and its former top executives including Sam Bankman-Fried on Tuesday, seeking a declaration that the company's holdings of digital assets belong to customers. The proposed class, which wants to represent more than 1 million FTX customers in the United States and abroad, seeks a declaration that traceable customer assets are not FTX property. The customer class also wants the court to find specifically that property held at Alameda that is traceable to customers is not Alameda property, according to the complaint. The lawsuit seeks a declaration from the court that funds held in FTX U.S. accounts for U.S. customers and in FTX Trading accounts for non-U.S. customers or other traceable customer assets are not FTX property. If the court determines it is FTX property, then the customers seek a ruling that they have a priority right to repayment over other creditors.

☆ Everything we know about Nishad Singh, the 27-year-old former FTX exec who had an 8% stake in the crypto exchange
▼ + stars: | 2022-12-24 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

Nishad Singh was FTX's Director of Engineering and had a 7.8% stake in the crypto exchange. Singh received a $543 million loan from Alameda Research, per bankruptcy filings. Singh was FTX's director of engineering, and had a 7.8% stake in the company. Singh's nearly 8% stake, which also included FTX subsidiary FTX.US, was worth about $572 million in March of this year. A year after Singh became FTX's director of engineering, he became a steady donor for the Democratic Party.

☆ Sam Bankman-Fried, founder of FTX, to waive extradition in Bahamas court
▼ + stars: | 2022-12-19 | by ( Marlene Lenthang | Marlene Lenthang Is A Breaking News Reporter For Nbc News Digital. | ) www.nbcnews.com time to read: +1 min

Former FTX CEO and founder Sam Bankman-Fried will appear in Bahamas court on Monday where he’s expected to waive his extradition rights, according to a source with direct knowledge of the situation. The move is a stunning reversal of course for Bankman-Fried who was arrested in the Bahamas Dec. 12 and initially resisted extradition. Bankman-Fried, 30, once the most prominent name in crypto, has since seen his empire fall into disgrace over the past few weeks. Last week, he was indicted in New York federal court on eight counts spanning wire fraud, conspiracy to commit wire fraud, and violating campaign finance laws. At a congressional hearing on FTX’s collapse and missteps last week, the company’s new CEO, John J. Ray III, lashed out at FTX’s leadership under Bankman-Fried.

☆ Sam Bankman-Fried denied he was part of a secret chat group called 'Wirefraud' alongside other top FTX executives
▼ + stars: | 2022-12-14 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried denied he was in a secret chat group called "Wirefraud" in a tweet on Monday. The former FTX CEO was arrested and charged with eight counts of fraud and conspiracy this week. Although the chat group was set up to keep communications hidden, the contents of it will become public throughout legal proceedings, AFR reported. FTX did not immediately respond to Insider's request for comment about the chat group, made outside of normal working hours. Hours after Bankman-Fried denied involvement in the chat group, he was arrested by Bahamian authorities.

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