FTX founder loses 700 million dollars
According to recent documents filed in court, if disgraced FTX founder Sam Bankman-Fried (aka SBF) is found guilty of fraud, he will be required to forfeit over $700 million worth of assets.
US federal prosecutor Damian Williams said in a document filed in court on January 20, 2019, that “the government respectfully advises that the property subject to seizure” contains an extensive list of assets that include fiat currency, stocks and cryptocurrency.
According to the documents, the majority of the assets were seized by the government between January 4 and January 19, while the government is also seeking to claim “all funds and assets” linked to three different accounts on Binance.
Looking at the list of seized assets, the largest allocations include 55,273,469 shares of Robinhood ( HOOD ), which had a market value of approximately $525.5 million at the time of writing; $94.5 million was held in Silvergate Bank; $49.9 million was held at Farmington State Bank; and $20.7 million was held at ED&F Man Capital Markets, Inc. In this particular incident, the government has requested that the assets in question be forfeited since it believes those assets were illegally obtained using consumer deposits.
Although other members of SBF’s inner circle, such as Caroline Ellison and Gary Wang, have confessed and cooperated with prosecutors about their involvement in the failure of FTX, the man himself has pleaded not guilty to all eight criminal counts. led towards him.
In other developments related to FTX, a story published on January 18 by the Wall Street Journal (WSJ) revealed incorrectly aged ads that the exchange issued in Africa not long before it filed for bankruptcy in November.
The campaign in question promoted USD-pegged stablecoins as safer investments than local currencies with regard to inflation, while also advertising the opportunity to earn 8% annually via stake reward schemes.
Despite the fact that these inflationary sentiments may generally be true given that African currencies such as the Nigerian naira and Ghanaian cedi have plunged against the USD, any African FTX customer persuaded by the company’s marketing continued to lose funds. when the company went bankrupt.
Pius Okedinachi, a former FTX education manager for Africa, revealed to the WSJ that the exchange managed $500 million worth of monthly trading activity in Africa, with the majority of the volume coming from Nigeria.
