FTX CEO Makes Seismic Claim About FTX Corruption• 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.
For once, some good news to come from the FTX bankruptcy team. pic.twitter.com/Mc12FjbHMZ
— Coin Bureau (@coinbureau) June 27, 2023
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.
JUST IN: New report shows FTX owed its customers $8.7 BILLION after commingling and misusing their deposits.
Take your #Bitcoin off exchanges!!
— Bitcoin Magazine (@BitcoinMagazine) June 26, 2023
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”.
It was a deep-state money laundering operation. https://t.co/Vbh9ra46fM
— Jeffrey A Tucker (@jeffreyatucker) June 26, 2023
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.”
— Cointelegraph (@Cointelegraph) June 27, 2023
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.
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