March 2, 2024

Sam Bankman-Fried, the disgraced founder of the now-defunct trading firm Alameda Research and its sister company FTX, took to Twitter to deny involvement in a series of unidentified transfers and token swaps that came from wallets associated with Alameda Research.

In response to a media report that discussed transfers involving people with connections to Alameda, Sam Bankman-Fried tweeted, ‘None of these are me.’

He further claimed not to have access to them in the first place.

Sam Bankman-Fried and FTX Owe Billions of Dollars

According to the documents filed with the court, a group of FTX customers located outside of the United States made an anonymous request for confidentiality to the judge overseeing the insolvency case involving the company.

In a document filed on Dec. 28, the 15 creditors who assert that FTX owes them a combined total of $1.9 billion have stated that they wish to remain anonymous due to the increased risk of fraud and theft associated with cryptocurrency.

The filing stated that cryptocurrency was difficult to monitor and that traditional financial transactions were more secure than cryptocurrency transactions.

Anonymity is important to a lot more people than just those who use FTX. Judge Dorsey ordered the identities of FTX’s major creditors be kept secret. The creditors requested this.

FTX Now Concerned With Privacy

FTX is concerned that its creditors’ private information could be stolen if their names are made public. It’s estimated that the top 50 creditors are owed a combined total of $3.1 billion in monetary compensation.

Together, the four most prominent financial news outlets—The New York Times, Dow Jones, Bloomberg, and The Financial Times—have filed a lawsuit in which they demand that the identities of the individuals responsible for the breach be made public.

The judge scheduled a hearing to take place in January in order to hear the arguments from both sides. Prosecutors in the case blame poor management, if not outright theft, on the implosion of FTX. 

FTX Collapse Bankrupt Ripple Tron Buyout

John J. Ray: Been There, Done That

John J. Ray III is an insolvency expert and current CEO of FTX. Ray claims that the FTX mismanagement runs deep. He discovered that its employees used commonplace programs like Slack and QuickBooks to manage multibillion-dollar finances. This is despite the fact that the company had recently emerged from insolvency.

According to Ray, an expert in bankruptcy cases who has worked on cases involving Enron and others, the failure of the company based in the Bahamas was due to “a limited number of inadequately trained and unskilled people.” Ray has worked on cases involving Enron and others. Ray has dealt with situations that were very similar in the past.

An investigation has shown that former FTX CEO Sam Bankman-Fried allegedly combined the investments of FTX customers with those of Alameda Research without the knowledge of FTX customers.

Authorities arrested Sam Bankman-Fried in the Bahamas last week and extradited him to the U.S.

Sam Bankman-Fried’s charges include money laundering and wire fraud. He posted a bond of $250 million and is currently under house arrest at his parent’s residence in California.


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