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Dec 16 (Reuters) - The Bahamas should not be blamed for the collapse of bankrupt cryptocurrency platform FTX, the country's foreign minister said on Friday, following repeated accusations by FTX management of alleged misconduct by the Caribbean nation's authorities. In a withering voice recording distributed over WhatsApp on Friday morning, Bahamas Foreign Minister Fred Mitchell, said "this blame game directed at The Bahamas" is undermining efforts to recover assets that were lost as a result of fraud. "We in The Bahamas can ask the question: How did the mastermind of FTX get on the front page of Forbes magazine, a U.S. magazine? On Thursday, his lawyers filed a new bail application, this time before the Supreme Court, according to a source. Reporting by Jasper Ward in Washington and Brian Ellsworth in Miami Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Sam Bankman-Fried is in jail, but legal watchers are wondering: Where's ex-girlfriend Caroline Ellison?
▼ + stars: | 2022-12-16 | by ( Sindhu Sundar | Lakshmi Varanasi | ) www.businessinsider.com time to read: +6 min

Former Alameda CEO Caroline Ellison isn't named in prosecutors' charges against Sam Bankman-FriedBut the SEC's civil suit references her statements on the relationship between FTX and Alameda. Conspiracy charges and civil claims against SBF show others in the crosshairs, legal experts said. But her rise as CEO at Alameda, Bankman-Fried's other crypto company separate from FTX, may certainly put her in investigators' sights. The SEC's complaint on Tuesday claimed that Bankman-Fried "remained the ultimate decision-maker" at Alameda, even after Ellison took over the reins. Since Bankman-Fried's crypto empire began unraveling in November however, Ellison has stayed away from the public eye.

☆ Sam Bankman-Fried's FTX wants to sell some of its last remaining solvent businesses as its restructuring process picks up
▼ + stars: | 2022-12-16 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

FTX wants to sell some of its last functioning business units, according to a court filing. The embattled company has petitioned a federal court for permission to sell several of its subsidiaries, including US derivatives platform LedgerX, as the troubled firm's restructuring process picks up. Company attorneys say it's a "priority" for FTX to "explore sales" and "strategic transactions" of some of its remaining businesses, according to a court filing on Thursday. The filing continued: "The Debtors believe a number of these entities have solvent balance sheets, independent management and valuable franchises." FTX wants to sell these businesses fast, according to the court document, which indicated that some of the entities have had their operating licenses suspended following FTX's collapse.

☆ Sam Bankman-Fried's story keeps getting wilder and weirder as details emerge from his past and more people speak out.
▼ + stars: | 2022-12-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

The more details that emerge, the more I feel like this is going to make a great Michael Lewis book (and movie) one day. Among the highlights from his testimony include his assertion that the crypto market is "the largest Ponzi scheme in history." In other news:Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market Committee meeting, Wednesday, Nov. 2, 2022, in Washington. A top FTX exec blew the whistle on Sam Bankman-Fried's moves just two days before the crypto exchange collapsed. Morgan Stanley's Mike Wilson said the stock market could fall further in 2023.

☆ Watch CNBC's full discussion with Kevin O'Leary about his relationship with FTX and Sam Bankman-Fried
▼ + stars: | 2022-12-16 | by ( Melissa Lee | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full discussion with Kevin O'Leary about his relationship with FTX and Sam Bankman-FriedCNBC Contributor and venture capitalist Kevin O'Leary joins CNBC to discuss his relationship with FTX and weighs in on former CEO Sam Bankman-Fried, who was arrested earlier this week in the Bahamas: "This is America. The justice system provides the assumption of innocence until proven otherwise."

☆ FTX back in bankruptcy court as Sam Bankman-Fried tries again for bail in the Bahamas
▼ + stars: | 2022-12-16 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFTX back in bankruptcy court as Sam Bankman-Fried tries again for bail in the BahamasCNBC's MacKenzie Sigalos previews today's FTX bankruptcy hearing which includes a joint effort by journalists to unseal the full list of FTX account holders.

☆ Bankman-Fried makes new bail application after losing first request: source
▼ + stars: | 2022-12-15 | by ( Industry Insight | Saw Law Firms Move Past The Pandemic Into A More Client-Focused Service Environment | Thomson Reuters Institute | ) www.reuters.com time to read: +1 min

Dec 15 (Reuters) - Former FTX CEO Sam Bankman-Fried has made a bail application before The Bahamas Supreme Court, a source familiar with the matter said on Thursday, after a magistrate judge on Tuesday rejected the former crypto mogul's request for bail. The source, who asked not to be identified, said the application was made on Thursday. Bahamas broadcaster Eyewitness News on Thursday reported that the Supreme Court would hear the bail application on Jan. 17, without citing sources. Bankman-Fried amassed a fortune valued over $20 billion as he rode a cryptocurrency boom to build FTX into one of the world's largest exchanges before it abruptly collapsed this year. Reporting by Jasper Ward in Washington, editing by Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.

Days before FTX’s bankruptcy filing last month, co-CEO Ryan Salame told Bahamian authorities that founder Sam Bankman-Fried may have committed fraud by sending customer money from the crypto exchange to his other firm, Alameda Research. According to a filing on Wednesday tied to FTX’s bankruptcy proceedings, Salame disclosed “possible mishandling of clients’ assets” by Bankman-Fried. FTX declared bankruptcy on Nov. 11. The indictment, unsealed on Tuesday, charged Bankman-Fried with eight criminal counts related to fraud, money laundering and improper use of customer funds. Like Bankman-Fried, Salame was a significant political donor, donating $20 million to Republican causes.

☆ New York Financial Regulator Issues Crypto Guidance for Banks
▼ + stars: | 2022-12-15 | by ( Mengqi Sun | ) www.wsj.com time to read: +4 min

New York’s financial regulator said banks looking to enter the cryptocurrency space need to first seek approval from the regulator. U.S. banks and foreign banks with branches in New York that are under NYDFS supervision should notify the agency at least 90 days before starting any new or significantly different crypto-related activities, according to the guidance. NYDFS is one of the first state financial regulators to issue such guidance for banks. PREVIEWNYDFS Superintendent Adrienne Harris said the guidance is needed as the traditional financial institutions continue to innovate and as the crypto market evolves over time. New York’s financial regulator, which oversees insurance companies and state-chartered banks, already plays an outsize role nationally in overseeing the financial services sector.

☆ Read the full text of Sam Bankman-Fried's planned testimony, which a congressional panelist called 'absolutely insulting'
▼ + stars: | 2022-12-15 | by ( Matthew Loh | ) www.businessinsider.com time to read: +2 min

FTX founder Sam Bankman-Fried was arrested before he could testify about his exchange's collapse. He did prepare a testimony, which a member of the House Financial Services Committee called "absolutely insulting." It wasn't read out in full at the hearing, but congressional leaders had a copy of the draft on hand. Bankman-Fried's spokesperson, Mark Botnick, told Insider he had no comment on the planned testimony. Copies of the planned testimony were first obtained by Forbes and Bloomberg.

☆ A top FTX exec blew the whistle on Sam Bankman-Fried's moves just 2 days before the crypto exchange's collapse
▼ + stars: | 2022-12-15 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

An FTX exec told authorities about potential illegality at the crypto exchange 2 days before its bankruptcy. He worked for Alameda between 2019 and 2021 before joining FTX Digital Markets, the crypto exchange's Bahamas division. Like Democratic Party donor Bankman-Fried, Salame has high-profile political ties: his partner is failed far-right Republican congressional candidate Michelle Bond. Bond's congressional candidate financial disclosure report showed that she received $400,000 in consulting fees from FTX Digital Markets when unsuccessfully campaigning to represent New York's 1st Congressional District. Read more: FTX's Bahamas unit paid co-CEO's MAGA Republican congressional candidate girlfriend $400,000

☆ Sam Bankman-Fried's relatives called the Bahamas prison he's being held at to ask if he can get vegan meals, per Bloomberg
▼ + stars: | 2022-12-15 | by ( Kelsey Vlamis | ) www.businessinsider.com time to read: +3 min

His relatives called the prison to see if he could receive vegan food, a source told Bloomberg. Bankman-Fried's lawyer previously cited his vegan diet as a reason he should be released on bail. One source told the outlet relatives of Bankman-Fried called the prison on Tuesday to ask if he could receive vegan meals. Lawyers for Bankman-Fried tried to use his vegan diet as a reason he should be released while awaiting extradition, CoinDesk reported Tuesday. They asked the court to consider releasing him on a $250,000 bail so he could maintain his vegan diet and stick to his medications, including Adderall and Zyrtec.

☆ The criminal charges against Sam Bankman-Fried carry big penalties and jail time if proven, legal experts say
▼ + stars: | 2022-12-15 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +4 min

If he pleads guilty or ends up being convicted, a federal judge will ultimately decide the length of any prison sentence. And those charges come with potentially big penalties, if he's found guilty: In a sparse indictment unsealed on Tuesday morning, federal prosecutors in Manhattan listed eight criminal counts. Prosecutors leveled multiple conspiracy and wire fraud charges, some of which can be fairly straightforward as they don't require elaborate exposition to support, according to legal experts. It is too soon to tell what, if any, charges Bankman-Fried would be convicted on. But federal criminal statutes prescribe these maximum prison penalties for the following counts:Four counts relating to wire fraud: Maximum sentence for each count is 20 years in prison.

☆ Sam Bankman-Fried's FTX had the corporate governance of a college fraternity, congressman says
▼ + stars: | 2022-12-15 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

A congressman likened collapsed exchange FTX's corporate governance to a college fraternity. "It would be laughable were it not so serious," congressman Ritchie Torres said. In reality, the company was more like a college fraternity, congressman Ritchie Torres says, with haphazard and reckless bookkeeping practices. "FTX had the corporate governance of a fraternity," Torres, a member of the House Financial Services Committee, told Coindesk TV on Wednesday. The now-bankrupt exchange used QuickBooks, an accounting software generally used by smaller businesses, not multi-billion dollar companies.

☆ SBF thinks one of his biggest mistakes at FTX was slashing his workday from 18 hours to 13 hours a day, his planned testimony shows
▼ + stars: | 2022-12-15 | by ( Matthew Loh | ) www.businessinsider.com time to read: +3 min

Disgraced FTX CEO Sam Bankman-Fried said he used to work 18 hours a day, per his planned testimony. In his 7,000-word draft, Bankman-Fried wrote that he was "less grounded in operational details" in the months leading up to his exchange's downfall. "I also prided myself on having a strong work ethic; I began FTX routinely working 18 hour days. In the planned testimony, he blamed himself for making a "number of significant mistakes" but said he didn't know about risky investments executed by FTX. Bankman-Fried's spokesperson, Mark Botnick, told Insider he had no further comment on Bankman-Fried's testimony draft.

☆ Asia's year in review: Who had it good — and who had it bad — in 2022
▼ + stars: | 2022-12-15 | by ( Curtis Chin | Jose Collazo | ) www.cnbc.com time to read: +7 min

As the new year approaches, we turn again to our annual look at Asia's winners and losers. Government and business leaders in every major economy — China now included — may well hope 2023 is the year when draconian pandemic-related lockdowns become a matter of history. Underscoring the Taiwanese tech industry's critical role, a Semiconductor Industry Association (SIA)/Boston Consulting Group 2021 study found that 92% of the world's most advanced semiconductor manufacturing capacity is located in Taiwan. With numbers like those, Taiwan's semiconductor industry ends the year on the move, still building ties and winning growing support from business and government in the United States and elsewhere. Mixed Year: Asia's 'love' for cryptoAs in much of the world, investors in Asia — once bedazzled if not bewitched by the crypto industry — end the year in a mixed mood.

☆ FTX's massive $256 million real-estate empire is up for grabs as Bahamian and US lawyers squabble over who should control it
▼ + stars: | 2022-12-15 | by ( Robert Davis | ) www.businessinsider.com time to read: +5 min

Lawyers representing the US and the Bahamas disagree on who should control FTX's massive real estate portfolio. A lawyer monitoring the case told Insider that the timing of the assets' disposal is more important than venue. According to a court filing from December 12, Bahamian lawyers asserted that Bankman-Fried spent more than $256 million to acquire 35 properties on the island. But, that total payout could change if regulators in one country or the other wait too long to liquidate the real estate assets, Pintarelli added. According to market data from brokerage BE Luxury Real Estate, the median sales price of Bahamian real estate grew from about $360,000 in 2020 to more than $630,000 through the first six months of 2021.

☆ Read the full memo the CEO of Binance sent to staffers after the exchange was hit by more than $1 billion of withdrawals in a day amid the FTX fiasco
▼ + stars: | 2022-12-15 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +4 min

Shortly after jittery investors withdrew over $1 billion from Binance on Tuesday, its CEO sent a memo to staffers. Changpeng "CZ" Zhao seemed to try to assuage market fears amid the implosion of crypto peer FTX. In the memo, CZ wrote Binance expects "the next several months to be bumpy." Some days we have net withdrawals; some days we have net deposits. Read the full memo Changpeng "CZ" Zhao sent to staff on Tuesday.

Now, with the fraud charges filed earlier this week against Sam Bankman-Fried, the founder of the bankrupt FTX exchange, Williams has further solidified his office's growing role in prosecuting financial crimes involving cryptocurrency, according to interviews with a half-dozen former prosecutors. Bankman-Fried, 30, has acknowledged risk management failures at FTX but said he does not believe he has criminal liability. In the wake of Bankman-Fried's arrest, Williams has made clear he would plow on with cryptocurrency enforcement. On Wednesday, he announced wire fraud conspiracy charges against the founders of two separate cryptocurrency mining and trading companies he called Ponzi schemes. On Tuesday, Williams told reporters more charges in the FTX probe were possible.

☆ Sam Bankman-Fried’s Crypto Crash
▼ + stars: | 2022-12-14 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

If the rise of Sam Bankman-Fried was a modern tale about cryptocurrency tokens and “effective altruism,” his fall seems to be as old as original sin. “This is really old-fashioned embezzlement,” John Ray , the caretaker CEO of the failed crypto exchange FTX, told the House on Tuesday. “This is just taking money from customers and using it for your own purpose, not sophisticated at all.”Mr. Bankman-Fried, FTX’s co-founder, was arrested Monday in the Bahamas and is expected to be extradited. SBF, as he is often called, has been on a media tour since FTX’s failure, and he portrays himself as a well-intentioned doofus savant who got in way over his head and—whoops—lost billions of dollars. The sloppiness of bookkeeping is true enough: Mr. Ray said invoices and expenses were communicated via Slack chats, and “they used QuickBooks.”

☆ FTX Fraud Suits Offer Blueprint for Pursuing Offshore Crypto Exchanges
▼ + stars: | 2022-12-14 | by ( Dave Michaels | ) www.wsj.com time to read: 1 min

FTX was one of the largest overseas crypto exchanges, based on a Caribbean island with a friendly regulatory regime, and arguably beyond the reach of U.S. rules that govern how trading firms deal with investors and consumers. The lawsuits filed Tuesday show how U.S. regulators have found a way to police global crypto conduct they don’t closely regulate. The Commodity Futures Trading Commission alleged, for instance, that Bahamas-based FTX affected the price of commodities sold in the U.S. That gave the CFTC authority to file a civil fraud lawsuit against FTX founder Sam Bankman-Fried and his companies.

She said “the double standard was obvious” with the way that Catherine, Princess of Wales, had been treated by sections of the British media compared to Meghan, particularly during their pregnancies. “British media is disproportionately white, and that shapes the way stories are framed,” he said. In the third episode, footage shows Meghan and Harry attending a memorial service for Stephen Lawrence, a Black teenager killed in an attack by white youths in London in 1993. Instead, Harry refers to “unconscious bias” within the royal family, which Meghan helped to educate him on. Princess Michael of Kent attends a Christmas lunch for the extended royal family at Buckingham Palace on Dec. 20, 2017, wearing a "blackamoor" brooch.

☆ FTX Digital Executive Warned of Client Fund Transfers to Alameda, Documents Show
▼ + stars: | 2022-12-14 | by ( Jonathan Randles | ) www.wsj.com time to read: 1 min

A top executive of FTX’s Bahamas subsidiary warned that country’s securities authority days before the company filed for bankruptcy Nov. 11 of customer fund transfers to Alameda Research, a cryptocurrency trading firm tied to FTX, according to documents made public Wednesday. The warning prompted the regulator to immediately seek a criminal investigation, according to the documents. Securities Commission Executive Director Christina Rolle requested that the financial crimes unit of the Royal Bahamas Police Force open an investigation into the subsidiary, FTX Digital Markets Ltd., the same day based on the warning of FTX Digital Chairman Ryan Salame.

Bankman-Fried and unnamed co-conspirators made "tens of millions of dollars in illegal campaign contributions" to both Democratic and Republican candidates and campaign committees, Damian Williams, the U.S. attorney for Southern New York, said at a news conference unveiling the eight-count criminal indictment, which included a campaign finance violation charge. "And all of this dirty money," Williams said, was used to "buy bipartisan influence and impact the direction of public policy in Washington." FTX boss Sam Bankman-Fried is escorted by police officers as he leaves court in Nassau, Bahamas on Dec. 13, 2022. The indictment alleges he also made illegal contributions through a corporation, which it does not name. Once believed to be a financial wunderkind, Bankman-Fried also faces a host of other charges.

☆ Photos show squalid conditions at the Bahamas prison where Sam Bankman-Fried will spend his holidays
▼ + stars: | 2022-12-14 | by ( Erin Snodgrass | ) www.businessinsider.com time to read: +4 min

The former FTX CEO will spend the next two months at Fox Hill, the Bahamas' only prison. The Fox Hill correctional center, located in Nassau, is known for its harsh conditions and overcrowding, according to human rights reports. A 2021 human rights report on the Bahamas by the US State Department offered further insight into the squalid conditions at the center. The Fox Hill correctional center, located in Nassau, is known for its harsh conditions and overcrowding, according to human rights reports. ReutersInmates have also said they were subjected to poor nutrition while at Fox Hill, sometimes facing long delays in between meals.

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