FTX CEO Makes Seismic Claim About FTX Corruption

By Vince • June 27, 2023 12:26 pm • Comments

Current FTX interim CEO John Ray has been hard at work attempting to rectify the consumer fallout of the FTX exchange.

Coin Bureau reports that $7 billion in liquid assets have so far been recovered by the bankruptcy team attached to the case.

Trending: Here’s How Much Crypto VP Kamala Harris and Second Gentleman Doug Emhoff Own

This is excellent news for FTX clients and creditors harmed by the implosion of the exchange late last year. …

However, the ongoing search for customer funds has dredged up details regarding the scope of FTX’s corruption.

According to current CEO John Ray, the FTX corruption went back to the very beginning of the enterprise—FTX commingled customer funds and engaged in dishonest practices since day one.

Bitcoin Magazine reports that FTX owed roughly $8.7 billion to its clients at the time of its collapse and issued this warning regarding centralized exchanges.

Crypto Potato provided one example of the alleged corruption:

Subsequently, the team alleged that FTX established a new organization called North Dimension Inc., described as a cryptocurrency trading company with 2,000 counterparties and an average monthly trading volume of $10 million.

In reality, though, it was a shell firm that funded withdrawals for the parent company.

Jeffrey A. Tucker claims that FTX was a “deep-state money laundering operation”.

Coin Telegraph reports, “Former FTX executives including SBF greenlit thousands of dollars worth of “grants” to niche projects all allegedly using customer funds, according to John Ray.”

 

CoinDesk explained:

The company also routinely misled its banking partners about how it was using accounts. A former employee of Alameda Research told the bankruptcy team that the company “made no meaningful distinction between customer funds and Alameda funds,” the report said.

Bankman-Fried also gave false testimony to senators at a Feb. 9, 2022, hearing when he spoke about his company’s practices in protecting customers and their money, according to the report.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

 

Search ProCoinNews