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Philanthropic FTX Foundation Sunsets Operations Amid Bankrupt Exchange’s Fallout

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Philanthropic FTX Foundation Sunsets Operations Amid Bankrupt Exchange’s Fallout

The philanthropic effort created by the troubled crypto exchange FTX has detailed it is sunsetting operations and told the community that members were “shocked and immensely saddened” by the turn of events that transpired around the trading platform.

Sam Bankman-Fried’s Altruistic Efforts Undermined by the FTX Collapse, Plans to ‘Do Unbelievably Good Things’ Shaken

While FTX was at one time valued at $32 billion, the crypto exchange executives spent significant amounts of money donating to different causes. For instance, FTX CEO Sam Bankman-Fried (SBF) donated a lot of money to Democratic super PACs and U.S. president Joe Biden. SBF’s mother, Barbara Fried, co-founded the political fundraising organization Mind the Gap. His mother also co-founded the get-out-the-vote (GOTV) organization the Center for Voter Information.

SBF claimed to be about altruism, in fact, he and his inner circle of ten living in a Bahamas condo are allegedly proponents of “effective altruism.” “For many of my friends their answer is to do unbelievably good things for the world just by working — choosing which organizations to work with and directly impacting important things,” SBF told Forbes in an interview earlier this year.

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FTX started an altruism fund and created a team called the FTX Foundation to disperse grants to philanthropic efforts. On Nov. 10, 2022, however, executives of the FTX Foundation said that it was closing down shop, and they were dismayed by FTX’s failure.

“We were shocked and immensely saddened to learn of the recent events at FTX,” the FTX Foundation wrote. “Our hearts go out to the thousands of FTX customers whose finances may have been jeopardized or destroyed.”

The FTX Foundation executives added:

We are now unable to perform our work or process grants, and we have fundamental questions about the legitimacy and integrity of the business operations that were funding the FTX Foundation and the Future Fund. As a result, we resigned earlier today.

Following the FTX Foundation shutdown, the next day, FTX parent firm West Realm Shires Services, Alameda Research, and approximately 130 additional affiliated companies filed for Chapter 11 bankruptcy protection in Delaware.

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Alameda Research, altruism fund, Bahamas Inner Circle, Bankrupt FTX, Bankruptcy, Barbara Fried, Deeply Saddened, Democrat, Democratic Super PACs, Dismayed, effective altruism, FTX Foundation, future fund, GOTV, Mind The Gap, philanthropic, philanthropic efforts, resigned, West Realm Shires Services

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What do you think about the FTX Foundation sunsetting its philanthropic efforts after FTX collapsed? Let us know what you think about this subject in the comments section 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

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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Alameda CEO

Bahamian Attorney General Insists FTX Is The Subject Of An ‘Active And Ongoing Investigation’

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Bahamian Attorney General Insists FTX Is The Subject Of An ‘Active And Ongoing Investigation’

The troubled and now-bankrupt crypto exchange FTX is the subject of “an active and ongoing investigation,” Bahamian attorney general Ryan Pinder told the press on Sunday. Pinder also stressed that putting the blame on the Bahamas “because FTX is headquartered here would be a gross oversimplification of reality.”

Bahamian Attorney General Says the ‘Bahamas Will Emerge, Held in Even Higher Esteem’

On Sunday, the attorney general of the Bahamas discussed the collapse of FTX Digital Markets, and he insisted that Bahamian authorities are investigating FTX. Ryan Pinder started his speech by contending that “the Bahamas is a place of laws, the rule of law, and the exercise of due process characterizes the integrity of our jurisdiction.”

The attorney general declared that the Bahamas Securities Commission (BSC) is the main Bahamian agency in charge of dealing with the FTX situation. Pinder explained that while FTX was located in the Bahamas, the government understands that the aftermath hurt people from all around the world.

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He said the case was a “very large business failure as a result of questionable internal management practices and corporate governance.” Interestingly, the Bahamas attorney general spoke about Coindesk’s Nov. 2, 2022 article that discusses Alameda Research’s balance sheet. Pinder also talked about the crypto asset FTT and how it was used as an exchange token.

After briefly mentioning the article during the speech, Pinder disclosed that Alameda Research does not fall under the regulatory jurisdiction of the Bahamas. However, he further detailed that if it is found that Alameda did commit any improprieties in the Bahamas, then Alameda will be subject to the Bahamas’ jurisdiction.

As far as FTX is concerned, Pinder disclosed that there’s an active investigation taking place right now. The Bahamas attorney general said:

We are in the early stages of an active and ongoing investigation — it’s a very complex investigation — BSC, the Financial Intelligence Unit, and the Police Financial Crimes Unit will continue to investigate the facts and circumstances surrounding FTX’s bankruptcy crisis and possible violations of Bahamian law.

Pinder further added that as with any active inquiry, officials seek to share updates in a way that does not “compromise or constrain investigators.” The attorney general remarked that it was “extremely regrettable” that the bankruptcy case “misrepresented the timely action taken” by Bahamian regulators.

Pinder believes the BSC acted with “remarkable” speed, and the Bahamian government is not too pleased about people blaming the island for FTX’s mishap. “Any attempt to blame the entire debacle on the Bahamas because FTX is headquartered here would be a gross oversimplification of reality,” Pinder told the press in his prepared speech.

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Meanwhile, the crypto influencer known as Bitboy has been trying to question the former FTX CEO Sam Bankman-Fried (SBF) at the former executive’s condo in the Bahamas. As far as Alameda Research’s top executive is concerned, Alameda CEO Caroline Ellison reportedly left Hong Kong to flee to Dubai.

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Alameda CEO, Alameda Research, Attorney General, Bahamas FTX, Bahamas Securities Commission, Bitboy, BSC, Caroline Ellison, Former FTX CEO, ftx, FTX Bahamas, FTX collapse, FTX investigation, Investigating FTX, investigation FTX, ongoing investigation, Ryan Pinder, Sam Bankman-Fried (SBF), sbf

What do you think about the attorney general of the Bahamas’ statements on Sunday? Let us know what you think about this subject in the comments section 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

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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Alameda Research

FTX faces criminal and civil investigation in the Bahamas

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FTX faces criminal and civil investigation in the Bahamas

  • Minister of Legal Affairs revealed that there was an ongoing criminal and civil investigation against FTX
  • FTX was the only registered entity in the region and its subsidiary Alameda Research had no presence legally

The Bahamas Attorney General and Minister of Legal Affairs – Ryan Pinder finally issued a national statement on the collapse of FTX. AG Pinder revealed that there was an ongoing civil investigation and a criminal investigation against the exchange in the Bahamas. He even stated that they were collaborating with several specialists and experts as part of the investigation but did not reveal any names.

“the Securities Commission, our financial intelligence unit, and the financial crimes unit of the Royal Bahamas police force will continue to investigate the facts and circumstances regarding FTX’s insolvency crisis and any potential violations of Bahamian law”

He also emphasized that while FTX was a legal entity in the Bahamas, its sister firm, Alameda Research did not have legal grounds to operate in the region. In addition, if Alameda is found to have “committed any improprieties”, then the company would be subjected to the laws of the region, he said.

While lauding the Bahamas Securities and Exchanges Commission for its quick action, he stated that the commission has “secured the assets of FTX Digital Markets.” The Attorney General stated that this was done to protect creditors and customers, after securing a green signal from the Supreme Court.

Furthermore, AG Pinder stated that the country’s regulatory authority has taken several protective measures approved by the Supreme Court. However, these measures would not be revealed until the regulator is “confident” that the ongoing investigation would not be compromised. The Attorney General added,

“we urge all authorities here and abroad at a minimum to exercise at least the same amount of prudence and restraint in their public commentary as we do so as not to prejudice any of the proceedings that are ongoing”

Furthermore, AG Pinder spoke about the bad light the country has been placed under because of FTX’s collapse. He stated that laying “the entirety of this debacle at the feet of the Bahamas” only because it is FTX headquarters would be “gross oversimplification of reality”. Highlighting the country’s laws for digital assets, he said

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“We have been shocked at the ignorance of those who assert that FTX came to the Bahamas because they did not want to submit to regulatory scrutiny. In fact, the world is full of countries in which there is no legislative or regulatory authority over the crypto and digital asset business but I must say the Bahamas is not one of these countries.”

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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Alameda

Bankruptcy Lawyers Say FTX Was Operated By ‘Inexperienced And Unsophisticated Individuals’

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Bankruptcy Lawyers Say FTX Was Operated By ‘Inexperienced And Unsophisticated Individuals’

On Tuesday, the attorneys representing FTX told the court that a “substantial amount of assets have either been stolen or are missing” and further stressed to the bankruptcy court that FTX executives left the lawyers James Bromley and Sullivan Cromwell with limited information. Bromley further likened the former FTX CEO Sam Bankman-Fried’s (SBF) crypto empire to his “personal fiefdom” and in the end, the attorney said, “the emperor had no clothes.”

Bankruptcy Lawyers Outline FTX’s Financial Issues, Lawyer Says Case Is One of the Most ‘Difficult Collapses in the History of Corporate America’

The Delaware bankruptcy court heard from FTX lawyers James Bromley and Sullivan Cromwell on Tuesday, and it seems FTX’s financial records do not look good. According to court documents, FTX has a cash balance of around $1.2 billion and this weekend a list of FTX’s 50 top creditors show the entities are owed roughly $3.1 billion.

However, the list of the creditors, at least for right now, remains confidential and names are redacted. According to a report from the New York Times (NYT), roughly 500 individuals logged into the court’s Zoom broadcast on Tuesday. At the hearing, Bromley told the court that a “substantial amount of assets have either been stolen or are missing” from the FTX platform.

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The attorney remarked that lawyers understand “many people that are looking to get their money back immediately,” and Bromley insists the team is “working towards being able to do that.” The attorneys had a lot of descriptions for FTX and Alameda Research executives, and Bromley called SBF’s empire his “personal fiefdom” that ended by showing the “emperor had no clothes.”

Restructuring executives and lawyers are looking to “bring order to disorder,” Bromley noted. FTX executives were also called “inexperienced” and “unsophisticated individuals.” Bromley’s statements echoed the commentary written by FTX’s new CEO, John Ray, who said the FTX bankruptcy was worse than Enron’s.

Bromley also told the court that FTX suffered from “cyberattacks” referring to when FTX’s wallets were hacked the day the company filed for bankruptcy protection. Bromley further mentioned that FTX’s headquarters moved around a lot in regions like Berkeley, California, Hong Kong, the Bahamas, and Miami.

However, despite the constant moving, FTX was “effectively under the control of Mr. Bankman,” Bromley detailed. FTX lawyers also detailed that the Bahamas-based joint provisional liquidators have agreed to transfer the case to the district of Delaware. Overall, Bromley said the FTX bankruptcy case represented “one of the most abrupt and difficult collapses in the history of corporate America.”

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alameda, Alameda Research, assets stolen or are missing, attorney, bahamas, Bankruptcy, Bankruptcy Case, Bankruptcy Creditors, Berkeley, california, collapse, corporate America, Court Filings, filings, FTX Bankruptcy case, FTX collapse, Hong Kong, James Bromley, John Ray, lawyer, miami, New FTX CEO, Sam Bankman-Fried, sbf, Sullivan Cromwell

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What do you think about the FTX bankruptcy case and the lawyer’s statements? Let us know what you think about this subject in the comments section 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

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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