FTX Faces Fresh Controversy: Alleged Island-Buying Plan

Published 21/07/2023, 08:51
FTX Faces Fresh Controversy: Alleged Island-Buying Plan

  • Legal action unveils extensive fraud at bankrupt crypto giant FTX Trading.
  • Lawsuit exposes alleged cash shortfall and dubious transactions at FTX.
  • Accusations of island acquisition and unpaid equity in lawsuit against FTX co-founder.

The latest legal action against Sam Bankman-Fried, co-founder of the now-bankrupt crypto giant FTX Trading Ltd., and his former top execs has shed light on the allegations of extensive fraud within the collapsed crypto empire.

FTX Trading is reportedly attempting to recover millions of dollars in cash and reverse over $1 billion in dubious transactions, according to the lawsuit filed recently.

The lawsuit uncovers that Caroline Ellison, former co-CEO of the associated hedge fund Alameda Research, had projected a cash deficit exceeding $10 billion at FTX.com, approximately eight months prior to the crypto exchange’s downfall.

The legal document also alleges that Bankman-Fried, along with former FTX Chief Technology Officer Gary Wang, withdrew $546 million from Alameda in May 2022 to purchase shares in Robinhood Markets Inc.

The lawsuit includes several other accusations

The lawsuit alleges that a memo exchanged between…

The post FTX Faces Fresh Controversy: Alleged Island-Buying Plan appeared first on Coin Edition.

The post FTX Faces Fresh Controversy: Alleged Island-Buying Plan appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.