Document Claims #Alameda CEO #Caroline Ellison's FTX Margin Position Was Negative $1.3B in May 2022
FTX user has lost access to $1.3 million and is writing off his investment
#Sam Bankman-Fried’s FTX collapse is a nightmare of shady finances – and these bizarre schemes emerged recently
Sam Bankman fried released manhattan court sbf
FTX founder Sam Bankman-Fried.ED JONES/AFP via Getty Images
Since Sam Bankman-Fried stepped down as CEO and FTX filed for bankruptcy, a number of unusual details have come to light.
Recently, it emerged that #FTX reportedly told customers to wire money to a little-known, fake electronics retailer website.
FTX execs also allegedly hid $8 billion in liabilities in what Bankman-Fried referred to as "our Korean friend's account."
Both critics and proponents of crypto consider the nascent sector a Wild West, but the collapse of Sam Bankman-Fried's FTX has given new weight to the term. FTX user has lost access to $1.3 million and is writing off his investmentbut he insists he is still 'quite bullish' on cryptocurrency
The ties between the pieces of his crypto empire — which included exchange FTX, hedge fund Alameda Research, and scores of smaller subsidiaries — remain complex. Since FTX's November 11 bankruptcy filing, new, bizarre details surrounding the shady finances continue to pop up. One SEC complaint said FTX told customers to wire money to a subsidiary that was a little-known fake online electronics retailer. North Dimension, as it was called, was critical in putting FTX customers' funds to use in Alameda's trading activity.
The site's been deactivated, but it was full of misspelled words and what appeared to be wrongly priced items. For example, one electronics item showed a "sale" price of $899, even though it listed a normal price of $410.
Revelations only get stranger from there. FTX execs hid $8 billion in liabilities in a customer account that Bankman-Fried referred to as "our Korean friend's account," a lawsuit from the Commodity Futures Trading Commission alleges.
And court filings show that Bankman-Fried and FTX cofounder Gary Wang borrowed $546 million in promissory notes from Alameda earlier this year to buy Robinhood stock.
Then, Alameda took out a loan and pledged those same shares as collateral.
Bankman-Fried is now stuck in a four-way legal battle with FTX's new leadership, as well as failed crypto lender BlockFi and creditor Antigua, for control of that Robinhood stake.
Meanwhile, the SEC also alleges that FTX used $200 million of user deposits for venture capital investments.
"FTX was an opaque company that was so centralized it relied entirely on one person," Andrew Yeoh, chief marketing officer of Web3 firm Nillion, told Insider.
A centralized player in a decentralized environment
The SEC has alleged that Bankman-Fried orchestrated a years-long fraud scheme. He has denied criminal liability and is due to appear in a New York federal court on January 3 for charges of wire fraud and conspiracy.
Using customer funds for proprietary trading is a destabilizing practice, according to Jeffrey Blockinger, general counsel at Quadrata. The ensuing fallout, he explained to Insider, could end up pushing investors away from similar, rival exchanges.
To Darren Sandler, lead counsel at Republic Crypto, the entire saga is ironic and highlights the shortcomings of a centralized player in an ostensibly decentralized environment.
"The point of crypto is that it's fully decentralized and trustless," he told Insider. "Acts of fraud and misappropriation of funds should actually be impossible or extremely difficult to commit. Everyday participants shouldn't have to trust crypto companies blindly or based on reputation."Crypto financial backer Calvin Tsai told Fox Business he lost $1.3 million during the FTX breakdown.
He said he has almost no expectation of recuperating his FTX reserves.
Be that as it may, Tsai stays bullish on crypto and said the discouraged market offers a purchasing an open door.
Crypto financial backer Calvin Tsai said he lost admittance to $1.3 million in the FTX breakdown, yet that hasn't sunk his faith in the computerized resource market.
In a Tuesday interview with Fox Business, he said he's now discounted his FTX misfortunes and sees practically zero chance of getting his cash back

"In reality this FTX occasion cut down costs a ton," Tsai said. "Yet, I think this is a decent opportunity for us, for the crypto financial backers to purchase the plunge."
Concerning shamed FTX organizer Sam Bankman-Broiled, his story keeps on getting more abnormal and more mind boggling.
For instance, recently he and prime supporter Gary Wang acquired $546 million from Bankman-Seared's Alameda Exploration to finance acquisition of Robinhood stock. Afterward, Alameda applied for a line of credit and promised those equivalent offers as security.
Bankman-Broiled stays detained at home at his folks' home in California.

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