All the lies of Sam Bankman-Fried, former king of cryptocurrencies, now a normal scammer –

All the lies of Sam Bankman-Fried, former king of cryptocurrencies, now a normal scammer –
Of Matteo Persivale

Among those defrauded in the maxi-bankruptcy of 30 billion also 100,000 Italians. Who will get back the 5 billion dollars found? Why did his ex have unlimited credit? Who paid her bail?

The next Warren Buffett?, asked us a cover of Fortune aged terribly; Sam Bankman-Fried, founder of Ftx, cryptocurrency intermediary between the exchange (to buy cryptocurrencies) and the platform tout court (to exchange tokenized shares) was also the leader of the top 400 of the new digital finance according to another very important cover, the one of Forbes. In reality, more investigators are investigating the $30 billion bankruptcy (100,000 FTX customers were Italian; their accounts are currently zeroed) pi Bankman-Fried appears a ordinary con man who has enjoyed incredible support and extraordinary freedom operational thanks to the lack of rules in the cryptocurrency world and the opaque banking regulations of the Bahamas where Ftx was headquartered.

Not only does the SEC accuse him of having hidden from Ftx investors (more than a million worldwide) that their money was being transferred to Alameda Researcha hedge fund managed by its partner e Bankman-Fried’s ex-girlfriendCaroline Ellison (daughter of two MIT professors), who enjoyed an unlimited credit line.

No, now it also turns out that the next Warren Buffett not long before the collapse of Ftx sent – ​​again via Alameda – $400 million to a mysterious cryptocurrency trading firm called Modulo Capital. Modulo, founded in March 2022 and operating in the same building in the Bahamas where Bankman-Fried lived, has two founding partners: Duncan Rheingans-Yoo, a two-year graduate, and Xiaoyun Zhang known as Lily, a former Wall Street trader and ex-girlfriend of Bankman-Fried according to the New York Times.

Modulo is emerging as a central element of the investigations, because – obviously – there is an urgent need to understand if and how much money from Ftx customers is still recoverable from the authorities, and where it is. Ftx lawyers last week said they had found a huge sum, 5.5 billion dollars (among cash, securities and cryptocurrencies, although the actual value of many of the cryptocurrencies owned by FTX is difficult to establish). And also last week the investigators announced that they had seized more than 600 million dollars in assets belonging to Bankman-Fried, including a mix of cash and stock.

Bankman-Fried is not currently in jail – which has understandably caused controversy overseas – but was granted bail after his arrest and is now barricaded at his parents’ home in Palo Alto awaiting trial.

Another very interesting item: who guaranteed the court the $250 million bail, given that the former trader’s parents are not billionaires and he says he has lost everything, like his clients? The judge has for now decided to keep secret the names of the two people who guarantee that enormous sumand (and that they should pay her in case of escape) for security reasons, since Bankman-Fried’s parents have already received death threats. Bloombergil Financial Times, Reuters Associated PressCnbc, Dow Jones, Insider and the Washington Post have filed a motion from their lawyers asking for their names to be disclosed in the public interest: the decision is expected next week.

January 27, 2023 (change January 27, 2023 | 12:46)


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick