The collapsed cryptocurrency exchange platform FTX claims former CEO Sam Bankman-Fried ‘hacked’ its systems after filing for bankruptcy to transfer ‘digital assets’ to Bahamian regulators.
FTX lodged the motion in the US Bankruptcy Court in Delaware on Thursday saying it had evidence to suggest the Bahamas government ordered Bankman-Fried, 30, to gain ‘unauthorized access’ while in custody.
‘In connection with investigating a hack on Sunday, November 13, Mr. Bankman-Fried and [FTX co-founder Gary] Wang, stated in recorded and verified texts that ‘Bahamas regulators’ instructed that certain post-petition transfers of Debtor assets be made by Mr. Wang and Mr. Bankman-Fried (who the Debtors understand were both effectively in the custody of Bahamas authorities) and that such assets were ‘custodied on FireBlocks under control of Bahamian gov’t,’ the filing states.
‘The Debtors thus have credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems for the purpose of obtaining digital assets of the Debtors—that took place after the commencement of these cases.’
FTX, which is based in the Bahamas due to its relaxed tax laws, collapsed on November 11 in a scandal that has cost its investors more than $11billion.
Shady accounting practices at FTX? I just can’t see it myself:
Meanwhile, in the “it’s not a cult” category: Sam Bankman-Fried ex Caroline Ellison made ‘foray’ into ‘Chinese harem’ polyamory.
Disgraced Alameda Research CEO Caroline Ellison penned graphic blog posts about polyamory and masochism before the implosion of her FTX-linked cryptocurrency hedge fund.
Ellison — who dated FTX founder Sam Bankman-Fried — wrote candidly about her “‘foray into poly” on her now-deleted Tumblr account back in February 2020, according to the Daily Mail.
The post — along with a series of other sexualized entries — was unearthed by the tabloid just days after CoinDesk claimed Ellison, 28, and Bankman-Fried, 30, were part of a 10-person “cabal of roommates” that managed operations for FTX and Alameda from a luxury penthouse in the Bahamas. CoinDesk claimed the group “are, or used to be, in romantic relationships with each other.”
“When I first started my foray into poly, I thought of it as a radical break from my trad past,” Ellison allegedly wrote in the Tumblr entry. “But tbh I’ve come to decide the only acceptable style of poly is best characterized as something like ‘imperial Chinese harem.’ “
The Stanford grad continued, “None of this non-hierarchical bulls–t; everyone should have a ranking of their partners, people should know where they fall on the ranking, and there should be vicious power struggles for the higher ranks.”
Finally (for now): Sam Bankman-Fried’s media outlets must come clean.
[S]ince the scandal broke, Bankman-Fried has been treated to two relative puff pieces on his philanthropic efforts in the Washington Post and the New York Times. Both drew severe backlash on social media for seeming to handle him with kid gloves.
The coverage of Bankman-Fried and the FTX collapse, which has resulted in the disappearance of millions of dollars invested into FTX and crypto currencies, must be called into question, given his connections and donations to corporate media outlets. A media storyline is forming that while Bankman-Fried did lose billions almost overnight of FTX user and investment money, his heart is still in the right place when it comes to fighting for the same global causes that liberal editorial boards agree with.
Putting it bluntly — every media organization that accepted funding from Bankman-Fried should come clean and offer full transparency as to the nature of their agreement with him and their financial arrangements. As Semafor’s Max Tani reported, these grants and their funding mechanisms have been put on hold. ProPublica announced that they had received “the first tranche of the $5 million grant in February of 2022. The remaining two-thirds of the grant are due, respectively by April 1, 2023 and by April 1, 2024.” Happy April Fools’ Day indeed.
This WaPo headline on FTX — written after its collapse — is an absolute classic: