Sam “SBF” Bankman-Fried, the founder and former CEO of the Bankrupt CryptoCurrency Exchange FTX, said his “biggest mistake” during the $ 8 billion collapse was delivering the company’s control over the new management-a decision he claimed to cost him a last minute chance to save the firm.
Bankman-fryOnce the leader of the $ 32 billion FTX exchange, is currently delivering a 25-year jail in prison For seven Felony charges related to the collapse of FTX and Alameda Research in November 2022, resulting in a $ 8.9 billion loss of investor funding.
Looking back at the FTX collapse, Bankman-Fried’s “biggest mistake” was the company’s leadership delivery to its current CEO, John J. Ray III, in Nov. 11, 2022.
“The one biggest mistake I’ve made in the distance is the delivery of the company,” the SBF told the news outlet mother Jones in a interview Published on Friday.
Minutes after signing the crypto exchange, Bankman-Fried received a call about a potential external investment that could have saved the company from losses, but it was too late to withdraw his signature, he claimed.
Following his appointment as the new CEO, Ray filed for chapter 11 losses on November 11, 2022, and leased the law firm Sullivan & Cromwell (S&C) for legal assistance in the trials.
Bankman-fried was arrested in Bahamas on December 12, 2022, after US prosecutors filed a criminal charge against him. He was extradited to the US in January 2023.
The FTX has collapsed due to misinterpreting user funds, resulting in billions of dollars worth of trading losses for his brother, Alameda Research. The quantity of trading firm uses FTX customer funds that have moved Bankman-Fried without permission to fund Losses to Alameda trading, now referred to as The Alameda’s space.
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Sullivan & Cromwell recommends Ray as the new FTX CEO at SBF
Two days leading to FTX’s Bankruptcy filing on November 9, S&C attorney Andrew Dietderich emailed Bankman-Fried with A Plan Suggest to hire Ray as a chief restructuring officer “in a possible chapter 11.”
In Feb. 16, 2024, a group of FTX creditors accused the law firmIt is said that it has a role in FTX’s multibillion-dollar fraud and that the company has benefited from it. The lawsuit, to seek harm for helping and interrupting fraud and breaking the duty of certainty, is Spontaneously removed in October 2024.
S&C gained more than $ 171.8 million worth of legal fee from FTX losses on June 27, 2024, according to legal files reviewed by Reuters.
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FTX users are still waiting for more than $ 4.2 billion in payment
Almost three years after the collapse of the exchange, FTX creditors continue to wait for full payment.
FTX Estate began paying creditors in February with a $ 1.2 billion payoutFollowing a $ 5 billion distribution in May. In payment of September, the exchange has paid a total of $ 7.8 billion to its creditors.
FTX is estimated to have up to $ 16.5 billion worth of acquired properties available to pay for creditors, meaning that creditors are set to receive another $ 8.7 billion.
Exchange plans to pay at least 98% of its customers 118% of the value in their accounts until November 2022.
On September 30, FTX distributed the third set of payments worth $ 1.6 billion in its users, users, According to In the Sunil, FTX and Customer’s Ad-HOC Committee Committee member, on an x Post.
The FTX collapse has sparked a wave of losses throughout the crypto industry, which integrates with one of the longest bear markets in sector history. Bitcoin (Btc) fell to lower as $ 16,000 following the collapse.
Magazine: The $ 2,500 Doco about the fall of the FTX on Amazon Prime … With help from Mother
