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FTX Bankruptcy

FTX U.S. channeled business to S&C, alleges former Chief Regulatory Officer

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FTX U.S. channeled business to S&C, alleges former Chief Regulatory Officer

  • Former FTX legal counsel accused the firm’s U.S. general counsel of channeling business to S&C.
  • S&C allegedly served as personal counsel to Sam Bankman-Fried and another key FTX executive.

Former FTX Chief Regulatory Officer Daniel Friedberg has accused the firm’s U.S. general counsel of channeling business to Sullivan & Cromwell (S&C), who were allegedly serving as FTX’s bankruptcy counsel.

FTX CRO alleges issues with S&C

Friedberg, who was the exchange’s chief regulatory officer until his resignation on 8 November 2022, made the allegations in a court filing on 19 January 2023.

The declaration was made after a creditor objected to the exchange’s plan to retain S&C as its lawyers throughout the bankruptcy case.

Friedberg claimed that FTX. U.S. lead counsel Ryne Miller, a former partner at S&C, directed business to his former law firm in several cases. As per the filing, Friedberg reminded Miller that his allegiance was to the debtor, not to the S&C — which he suggested continued to be a problem throughout his stint at the exchange.

The former Chief Regulatory Officer stated:

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“Mr. Miller informed me that it was very important for him personally to channel a lot of business to S&C as he wanted to return there as a partner after his stint at the Debtors.”

S&C also served as personal counsel to SBF

Friedberg further alleged that Miller had hired S&C to be the primary counsel for FTX. U.S., FTX Derivatives (formerly LedgerX), and Sam Bankman-Fried’s holding company, Emergent. He also mentioned that S&C had served as personal counsel to Bankman-Fried and another key executive.

While elaborating on SBF’s connection with S&C, Friedberg stated:

“S&C represented all of these groups simultaneously without proper conflict waiver. S&C also represented Sam and Nishad personally. The lawyers in this important bankruptcy proceeding should be independent and not have a history of representing all of the various groups and the principals at one time.”

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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FTX Publishes Creditor List, Owes Millions To Well-Known Institutions And Government Agencies

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FTX Publishes Creditor List, Owes Millions To Well-Known Institutions And Government Agencies

The now-defunct crypto exchange FTX has published its list of creditors, with the names unredacted. The comprehensive list, which is over 100 pages long, shows that FTX owes a lot of money to well-known institutions, including Binance, Airbnb, Apple, Amazon, Linkedin, Coindesk, the Wall Street Journal (WSJ), and more. U.S. government entities, such as the Internal Revenue Service (IRS) and the Treasury’s Financial Crimes Enforcement Network (FinCEN), are also included.

FTX Creditor List Reveals Wide Range of Businesses Owed Money

On Jan. 24, 2023, FTX published the bankrupt firm’s creditor ledger, which contains more than 100 pages of names. The creditors’ list includes government agencies from Switzerland, Hong Kong, the U.S., and Japan. In addition, the ledger features a myriad of well-known businesses, including Alibaba, Allied Sports, Microsoft, Amazon, Meta, Twitter, Google, Blue Bottle Coffee, Bonham Capital, Bitstamp, Bitgo, Infura, Inca Digital, Lightspeed Strategic Partners, Long Watch Security, Mercedes-Benz, Messari, Nomura, and O’Leary Productions. Bankruptcy documents filed last year indicate that the top 50 FTX creditors are owed an estimated $3 billion.

The FTX creditors’ list includes U.S. government agencies, such as the IRS, FinCEN, and various state tax collectors from a number of different states. The list showcases three major airlines, hotels, apartments, nonprofits, and software companies that provide cloud services. However, around 9.69 million FTX customer names are redacted from the creditor ledger. The list also highlights a great deal of businesses stemming from The Bahamas, where the FTX inner circle operated. Creditors further include banks, Stanford University, Fox News, Coindesk, and the Wall Street Journal.

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The court filing shows monies owed to a large number of creditors, but it does not mean the entity or individual leveraged the FTX exchange to trade crypto. For instance, a spokesperson from the Swiss regulatory entity FINMA told Reuters that it did not understand why it was on the list. FINMA “was not a client of FTX and had not acted on its platforms,” the spokesperson told the news outlet. Reuters reporter Noele Illien also reached out to Airbnb for comment, but the company did not respond.

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What are your thoughts on the creditor list released by FTX and the extent of the debts owed to well-known institutions and government agencies? Share your comments below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Accusations

Former President Of FTX US Shares His Experience And Relationship With CEO Sam Bankman-Fried In Detailed Twitter Thread

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Former President Of FTX US Shares His Experience And Relationship With CEO Sam Bankman-Fried In Detailed Twitter Thread

The former president of FTX US, Brett Harrison, published a 49-part Twitter thread explaining why he left the firm and his relationship with co-founder Sam Bankman-Fried (SBF) of FTX. Before his role at FTX US, Harrison worked with SBF at Jane Street and prior to joining FTX, he worked for Citadel Securities. In the Twitter thread, the former president of the U.S. subsidiary explained that his “relationship with Sam Bankman-Fried and his deputies had reached a point of total deterioration, after months of disputes over management practices at FTX.”

Brett Harrison’s Deteriorating Relationship With FTX CEO Sam Bankman-Fried Leads to Resignation

On Jan. 14, 2023, Brett Harrison, the former president of FTX US, shared his personal account of his experience working at FTX US, the United States-based crypto exchange company, for seventeen months. Harrison described his days with the U.S. exchange in a 49-part Twitter thread that goes into great detail. Initially, Harrison was excited to join the company, but over time, his relationship with the company’s CEO, Sam Bankman-Fried (SBF), deteriorated due to disputes over management practices.

“Six months into my time at the company, pronounced cracks began to form in my own relationship with Sam,” Harrison said. “Around then I began advocating strongly for establishing separation and independence for the executive, legal, and developer teams of FTX US, and Sam disagreed.”

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The former president of FTX US Brett Harrison (pictured above) left FTX on Sept. 27, 2022.

Despite facing immense pressure, Harrison persisted in disagreeing with the CEO of FTX, whose sway over various industries was both pervasive and unyielding. Harrison said others at FTX US shared his dissent towards the CEO and his inner circle, as he remarked that it was a team of seasoned professionals from reputable firms in U.S. finance, law, and regulated exchanges.

“Our collective experience and professional acumen were frequently treated as though they were irrelevant and valueless. It was extremely frustrating for all of us,” Harrison insisted. Harrison added:

Sam was uncomfortable with conflict. He responded at times with dysregulated hostility, at times with gaslighting and manipulation, but ultimately chose to isolate me from communication on key decision-making.

Harrison Resigned From FTX on Sept. 27, 2022, After Attempts to Address Organizational Problems at the Company

Ultimately Harrison decided to leave the company and founded his own firm because he felt that the “dream job” of working at FTX US was not worth it due to the deterioration of the relationship with SBF. Harrison said SBF’s behavior and decisions were influenced by insecurity and volatility in temperament.

In early April 2022, Harrison made a final attempt to address the organizational problems at FTX US by making a formal complaint. In response, he was threatened with being fired and having his professional reputation destroyed by Bankman-Fried if he did not retract his complaint and apologize. This event solidified Harrison’s decision to leave the company. He wanted to ensure that the company was well-positioned for success after his departure, so he left the company in an orderly manner.

1/ An announcement: I’m stepping down as President of @FTX_Official. Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company.

— Brett Harrison (@BrettHarrison88) September 27, 2022

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“So I gradually wound down, finished building and releasing the US stock brokerage, and saw FTX US employees through their mid-year reviews,” Harrison said. “I never could have guessed that underlying these kinds of issues … which I’d seen at other more mature firms in my career and believed not to be fatal to business success … was multi-billion-dollar fraud,” Harrison remarked.

Harrison added that he has received apologies from many people who are aware that he had no involvement in the criminal scheme. He has learned a lot about the industry over the last few months, some people treated him differently, while some offered sympathy and support. He also mentions that it will be difficult to forget the frenzied and baseless accusations leveled against him on social media.

When Harrison left FTX US last year, SBF told Bloomberg that the executive’s departure had been in the works for “a little while.” The news outlet also asked SBF about his own succession plans, and the FTX CEO said at the time that he had no plans to leave FTX and he would be there “for the long term.”

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Accusations, Apology, Brett Harrison, ceo, citadel securities, crypto exchange, destroyed, deterioration, Disputes, dream job, Experience, fired, formal complaint, founded, Fraud, FTX Bankruptcy, FTX collapse, FTX.US, industry, insecurity, Insight, Jane Street, Management, organizational issues, President, professional reputation, relationship, Resignation, Sam Bankman-Fried, sbf, Social Media, support, sympathy, temperament, threatened, Twitter thread, volatility

What are your thoughts on Harrison’s experience at FTX US? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Alameda

FTX’s Exchange Token FTT Sees Mysterious Pump Amid Bankruptcy Case, SBF Fraud Charges

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FTX’s Exchange Token FTT Sees Mysterious Pump Amid Bankruptcy Case, SBF Fraud Charges

As the FTX bankruptcy case and fraud charges against co-founder Sam Bankman-Fried continue to unfold, the value of the exchange’s token, FTX Token (FTT), has seen significant growth. Since Jan. 9, 2023, FTT has risen 28.42% and currently sits above the $1 range, following a dip below that threshold.

FTT Token Jumps 28% Rising Above the $1 Threshold

The value of FTX’s exchange token, FTT, has seen a marked increase over the past two days. On Jan. 9, 2023, the coin reached $1.36 per unit. While some of those gains have been lost, FTT is currently holding above the $1 range at $1.22 per coin as of 9:30 a.m. Eastern Time on Jan. 11, 2023. The reason for this surge in value is uncertain, as FTT’s tokenomics are tied to the now-defunct FTX exchange and its potential future growth.

FTT/USD chart on Jan. 11, 2023.

FTT’s levels of ownership concentration are extremely high, with a single address controlling 59.55% of the entire FTT supply. Additionally, an unknown hacker holds 45.85 million FTT tokens, comprising 13.94% of the circulating supply. Another unknown address holds 10 million FTT, or 3.04% of the total supply. FTT’s value fell below the $1 range on Dec. 19, 2022, and remained below that threshold until a spike on Jan. 9, 2023.

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The most active crypto exchanges trading FTT currently include Binance, Mexc Global, Kucoin, Gate.io, and Sushiswap. On Sushiswap alone, there is roughly $104,496 in FTT trades paired against wrapped ethereum (WETH). The overall global trading volume for FTT is approximately $23.81 million among all exchanges worldwide. Since the FTT token’s all-time low 12 days ago on Dec. 30, 2022, when it reached $0.827 per unit, it has risen 45.8%. However, it remains 98.6% down from its all-time high of $84.18 per unit reached on Sept. 09, 2021.

With Sam Bankman-Fried (SBF) facing charges of financial fraud and FTX filing for bankruptcy, the future of FTT is uncertain. Despite this, the token has not experienced the same sharp decline as Terra’s LUNA did last May. FTT’s tokenomics were closely tied to those of FTX, including providing traders with reduced fees on the now-defunct crypto exchange, and now the coin’s tokenomics are in disarray.

FTT is among many crypto assets that have managed to survive despite a lack of development or clear tokenomics. It has now become something for traders to speculate on as a hobby, and in light of the ongoing scandal involving SBF and FTX, it is difficult to view it seriously.

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alameda, Alameda Research, Altcoins, Binance, Concentration, dead coin, disarray, Exchange Token, Fork, FTT, FTT Below $1, FTT Crash, FTT Market Crash, FTT Price Dump, FTT Pump, FTT slides, FTT Supply, FTT whales, ftx, FTX Bankruptcy, FTX collapse, FTX Token, FTX’s collapse, hobby, IEO, KuCoin, LUNA, Sam Bankman-Fried, Sam Bankman-Fried (SBF), sbf, speculate, Sushiswap, Terra collapse, tokenomics, toy coin, Traders, whale concentration, Wrapped ethereum (WETH)

What do you think about FTT’s market performance amid FTX’s bankruptcy case and the fraud charges against FTX’s co-founder Sam Bankman-Fried? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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