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SBF’s Jail Tips Ignite Solana Speculation

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FTX kingpin SBF has returned to public scrutiny, and this time he is reportedly offering tips from jail to security guards on how to buy Solana. While it has sparked hilarious reactions, some believe that Solana is gearing up for a surge in March, especially since SBF sentencing is less than a month away. The bankrupt crypto platform had close ties with the digital asset as it held substantial amounts of SOL. However, despite the crash, SOL bounced back, maintained its popularity as an Ethereum competitor, and continues to grow exponentially.

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SBF's Jail Tips Ignite Solana Speculation 2

Meanwhile, Bankman-Fried 31 has recently appointed Marc Mukasey, who previously represented former President Trump, to oversee his sentencing. Mukasey is renowned for his assertive courtroom presentations. It will be interesting to see what kind of arguments he brings to the court in the high-profile trial.

On January 27, SBF’s legal representatives filed a legal memo in the U.S. District Court in Manhattan, seeking a reduction in the prison sentence from five and a quarter to six and a half years. In the court memo, the lawyers stated that their client is “deeply, deeply sorry” for “the pain he caused over the last two years.” “His sole focus after the collapse of FTX was making customers whole.”

SBF’s Crucial Date

According to law experts, the filing comes at a crucial time before Mr. Bankman-Fried’s sentencing on March 28, whose alleged crimes carry a maximum sentence of 110 years. The final decision rests with federal judge Lewis A. Kaplan, who is overseeing the case of the fallen crypto mogul. Coinbase’s Chief Legal Officer believes that Bankman-Fried could face decades behind bars even if Judge Kaplan decides not to impose the maximum sentence.

Miriam Baer, vice dean at Brooklyn Law School, stated that the judge “could still give a very serious sentence given how young Mr. Bankman-Fried is—say, a 30- or 35-year sentence.” Successfully appealing and overturning criminal convictions as serious as this, is a rare occurrence. Since last summer, SBF has been placed at the Metropolitan Detention Center in Brooklyn, where he has spent much of his time working on the case, a person with knowledge of the matter said.

SBF Mulls Appeal In Next Move

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FTX’s kingpin, Sam Bankman-Fried, or SBF, is currently pursuing a potential appeal, as revealed by his legal team. The decision to forgo post-trial motions, as legal experts suggest, hints at the likelihood of an appeal. This aligns seamlessly with the staunch assertion of SBF’s innocence by lead attorney Mark Cohen, who vows to “continue to vigorously fight the charges against him.”

In a letter dated December 1 to Judge Lewis Kaplan, Bankman-Fried’s legal representatives conveyed their decision not to file any post-trial motions. However, they made it clear that they reserve the right to pursue any claims through an appeal. This strategic move by the legal team emphasizes their commitment to challenging the charges against SBF through the appellate process.

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SBF Mulls Appeal In Next Move 4

Before this development, Bankman-Fried’s legal team had filed a bail plea, seeking his release. Unfortunately, Magistrate Joyann Ferguson Pratt denied the plea, citing concerns that the former crypto mogul posed a potential flight risk. His next hearing is scheduled for February 8, 2024.

The downfall of the once-respected billionaire unfolded dramatically with the catastrophic collapse of his digital asset exchange. The repercussions of this event reverberated through the volatile crypto market, culminating in SBF’s conviction in November. The high-stakes courtroom saga, capturing the attention of financial markets and the crypto community alike, concluded definitively with the former FTX founder being found guilty of orchestrating one of the most substantial financial fraud schemes in US history.

SBF Faces 7 Counts Of Fraud & Conspiracy

During the month-long trial, Bankman-Fried faced seven counts of fraud and conspiracy. Prosecutors argued that he had misappropriated a staggering $8 billion from his cryptocurrency exchange’s customers for personal gain, attributing greed as the primary motivator. The jury, consisting of 12 members in Manhattan federal court, delivered the verdict, exposing SBF to a potential maximum sentence of 5 to 20 years in prison for each count.

The charges encompassed wire fraud, a wire fraud conspiracy, and a money laundering conspiracy. Furthermore, sentencing for Sam Bankman-Fried is scheduled for March 28, 2024, marking a crucial milestone in this high-profile legal battle that has sent shockwaves through the cryptocurrency and financial realms.

Former FTX Execs Launch New Crypto Exchange After Testifying Against SBF

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A new cryptocurrency exchange is being launched by a group of former FTX executives, including one who testified against FTX founder Sam Bankman-Fried in his fraud trial. The new exchange, called Backpack Exchange, claims to offer a more secure and transparent way of trading digital assets.

Backpack Exchange is a project of Trek Labs, a Dubai-based startup led by Can Sun, the former general counsel of FTX. Sun was one of the key witnesses in the Bankman-Fried trial, who was convicted earlier this month for diverting $9 billion of customer funds to his trading firm, Alameda Research through a secret software backdoor.

Sun said he left FTX after finding out about Bankman-Fried’s scheme and refused to help him cover them up. He went further to later cooperate with federal prosecutors by providing crucial evidence against Bankman-Fried.

Sun expressed his desire to apply the insights gained from FTX’s failure to develop a superior option for crypto traders. Collaborating with Armani Ferrante, an ex-FTX colleague and the CEO of Trek’s British Virgin Islands-registered holding company, they aim to create a better solution.

Ferrante also manages a partner firm, Backpack, specializing in the design and operation of digital currency wallets. Additionally, Trek’s executive team includes Sun’s former legal deputy, who happens to be Ferrante’s wife.

Backpack Exchange Enters Post-FTX Market

Backpack Exchange, which plans to launch in beta later this month, will use Backpack’s technology to allow users to hold funds in their own “self-custody” crypto wallets that the exchange itself wouldn’t be able to unilaterally access.

These wallets use so-called multiparty computation techniques that require several parties to approve any transaction. Customers on Backpack Exchange would be able to verify their holdings at any time, Sun and Ferrante said.

The venture is looking to sell a 10% stake to investors at a valuation of over $100 million. Sun and Ferrante said they had hired other former FTX legal and compliance employees at Trek because of their skills and experience. Sun disclosed his previous role at FTX in regulatory filings and investor materials, and he also informed Dubai’s regulator of his testimony.

In a post-FTX world, you need trust and transparency to create a true alternative to the other players, Sun said.

It remains to be seen how investors and users will react to the new exchange, given the background of its founders. Ferrante’s name, not Sun’s, appeared in a press release last month announcing the launch of Backpack Exchange.

Related Reading | Solana’s Meteoric Rise: Unveiling GSOL’s Staggering Surge and Market Implications

FTX Claimants Hit Jackpot Amidst Landmark SBF’s Verdict

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In the aftermath of the FTX ex-CEO’s conviction on all seven charges, claim holders of the defunct exchange find themselves in an unexpectedly favorable position. Recent data from Claims Market reveals a substantial surge in FTX’s claim pricing of 57%. Similarly, Celsius claims have risen by approximately 35–40%, Genesis claims by 50%, Alameda claims by 10-15%, and 3AC claims by 7-9%. These claims represent the right to a specific amount of money and are staked by creditors in anticipation of recovering a portion of their investments in the event of bankruptcy or similar circumstances.

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FTX Claimants Hit Jackpot Amidst Landmark SBF's Verdict 6

Investors often trade these claims based on their forecasts of the final recovery amount. A spike in claim pricing signals an increase in the expected recovery value. While many attribute the surge in FTX claims to the recent landmark verdict, it may also be influenced by the remarkable valuation growth of artificial intelligence companies previously supported by the exchange.

Meanwhile, claim prices for Celsius, Genesis, Alameda, and 3AC vary significantly, showcasing the diverse dynamics within this realm. This situation provides a captivating glimpse into the evolving landscape of cryptocurrency claims. FTX’s strategic investments in these promising startups have unexpectedly provided claimants with the potential to receive significantly higher amounts than initially envisioned.

FTX’s Ex-CEO Convicted On Seven Charges

As reported by TronWeekly, the electrifying trial that gripped financial markets and the crypto community ended on a decisive note. Former FTX founder Sam Bankman-Fried was found guilty of orchestrating one of the biggest financial fraud schemes in US history. The month-long trial saw Bankman-Fried facing seven counts of fraud and conspiracy.

Prosecutors contended that he had embezzled an astounding $8 billion from his cryptocurrency exchange’s customers for personal gain, citing greed as the primary motivator behind his actions. The verdict was delivered by a 12-member jury in Manhattan federal court, with a maximum sentence of between 5 and 20 years in prison for each count. The charges included wire fraud, wire fraud conspiracy, and money laundering conspiracy. Sentencing has been set for March 28, 2024.

FTX: Did SBF’s Lawyers Find Chink In Nishad Singh’s Defense?

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The legal battle surrounding former FTX CEO Sam Bankman-Fried has reached an intriguing twist in its third week, with the spotlight shining brightly on Nishad Singh, FTX’s former Director of Engineering and a close associate of Bankman-Fried. Singh’s testimony delivered a significant blow to Bankman-Fried’s defense, revealing crucial details about the downplaying of Alameda Research’s negative balance and questionable financial dealings, despite the reluctance of the team involved.

As the trial unfolds, Singh’s cross-examination promises to unveil even more interesting aspects of this high-stakes legal drama. On October 17, the trial of the former founder of the now-defunct crypto exchange continued, with Nishad Singh taking the stand. Building on his previous revelations, Singh provided further insight into Bankman-Fried’s alleged wrongdoings while facing cross-examination by SBF’s lawyer, Mark Cohen.

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FTX: Did SBF's Lawyers Find Chink In Nishad Singh's Defense? 8

During Singh’s direct examination on October 16, he disclosed a conversation between FTX’s co-founder Gary Wang and Adam Yedidia, where Alameda Research’s negative balance swelled to an unexpected $8 billion. Following this revelation, Alameda’s former CEO, Caroline Ellison, shared a spreadsheet displaying the negative balance with him, Wang, and Bankman-Fried. However, as per Singh’s testimony, Bankman-Fried dismissed the alarming figures, attributing them to a mere bug in the system.

SBF’s Lawyer Grills Former FTX Engineer

In another revelation, Singh claimed that he took out a loan amounting to $477 million from the exchange on SBF’s advice. However, Singh clarified that the proposed transaction remained purely on paper and never materialized into actual cash.

Despite Singh’s compelling testimony, Bankman-Fried’s defense team, led by Mark Cohen, launched a counterattack during cross-examination. Cohen strategically questioned Singh in a manner that could potentially cast doubts on his credibility, a tactic previously absent during the cross-examination of other witnesses, including Wang and Caroline.

As the courtroom drama intensifies, legal experts and cryptocurrency enthusiasts are closely monitoring the proceedings. The revelations made by Singh have added layers of complexity to the case, raising questions about accountability, transparency, and ethical conduct within the cryptocurrency industry. With Singh’s testimony poised to unveil more hidden truths, the FTX trial continues to captivate the public’s attention, leaving the crypto community on edge, awaiting the next shocking revelation in this gripping legal saga.

FTX: Nishad Singh Struggle To Say No Amidst SBF’s Choices

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Nishad Singh, a former core member of SBF’s inner circle and the ex-director of engineering at FTX Exchange, has pleaded guilty for the third and final time, sending ripples through the financial world. Singh’s guilty plea comes as he is cooperating fully with prosecutors, shedding light on the intricate web of deception within SBF’s empire.

Appearing as a witness in the high-stakes legal drama, Singh didn’t hold back, providing damning details about SBF’s extravagant lifestyle, labeling it as excessive and “super ostentatious.” Singh also raised eyebrows by revealing SBF’s association with high-profile personalities like Katy Perry, Orlando Bloom, Jeff Bezos, and Kris and Kendall Jenner. Most notably, Singh highlighted SBF’s relationship with Michael Kives, a former aide to Hillary Clinton, claiming that SBF expressed a keen interest in showering Kives and Bryan Baum with staggering bonuses and substantial long-term capital for their VC firm.

Despite Singh’s efforts to dissuade SBF from investing in K5, the indicted CEO went ahead, channeling hundreds of millions of dollars into K5 through Alameda Research Ventures LLC. A spreadsheet unveiled SBF’s reckless spending spree, with investments such as $45 million in SkyBridge Capital and a staggering $250 million in Modulo Capital, a hedge fund co-founded by a former close associate of Bankman-Fried.

FTX: The Revelation

Additionally, Singh shed light on FTX’s collaboration with Telegram, revealing the controversial deal where FTX aided Telegram in building a payment mechanism, earning a share of Telegram’s native TON tokens. Despite objections from Singh and Caroline Ellison, another member of SBF’s inner circle, Bankman-Fried insisted on pursuing the deal, causing internal discord.

The saga reached a dramatic climax in a conversation in September 2022 when Singh confronted SBF about FTX’s precarious state. SBF’s dismissive response, “We are a little short on deliverables,” left Singh in disbelief. Feeling deeply betrayed, Singh testified that FTX’s breach of trust with its users was “so evil” that he contemplated suicide. In his emotionally vulnerable state, Singh admitted to considering falsifying transactions, making it appear as though personal loans taken out in his name using company funds had been repaid.

Singh’s shocking revelations come on the heels of similar admissions by Gary Wang and Caroline Ellison, the other members of SBF’s inner circle, who have also pleaded guilty and are cooperating with prosecutors.

SBF Alleges Binance’s Secret Plot In FTX Downfall

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The saga behind SBF’s once-thriving crypto empire has taken a dark turn, exposing a trail of secrets that could rival a Hollywood thriller. From mishandling customers’ funds for personal luxuries to plotting against rivals and a love story turned sour, this infamous incident reads like a gripping movie script. The latest revelation emerged in the form of a November 2022 internal document, presented as evidence in the ongoing trial.

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SBF Alleges Binance's Secret Plot In FTX Downfall 10

In the memo, Bankman-Fried accused Binance, FTX’s rival, of orchestrating a malicious PR campaign against them. He alleged that Binance leaked an Alameda balance sheet to the media, triggering a chain of events that led to FTX’s downfall. To recall, CoinDesk, on November 2, published a report based on the leaked balance sheet, hinting at FTX’s vulnerable position. The after-effects of the article were catastrophic, causing ripples across the crypto industry. Binance, at the time of writing, remains silent in response to these allegations.

Next, the document also highlights TRON founder and Huobi’s advisor, Justin Sun, whom Bankman-Fried once contemplated as a potential investor to approach. However, he realized that Sun was closely associated with CZ. In his desperate efforts, SBF also pondered sharing a confident series of tweets, a move that Ellison confirmed Bankman-Fried had indeed executed.

Furthermore, in the document, the former CEO noted that the then-FTX had substantial capital but limited liquidity. Caroline Ellison, SBF’s former girlfriend and a star witness, clarified during the court proceedings that this indicated that out of the $12 billion in client assets on the exchange, FTX had only one-third available, amounting to “$4 billion to process their withdrawals.”

SBF’s Bribe To Chinese Officials

Amidst the trial, a pivotal moment arrived when Ellison, the ex-head of FTX-linked trading firm Alameda Research, delivered a damning testimony on October 10. She revealed Bankman-Fried’s attempts to unlock frozen funds on Asian crypto exchanges, detailing intricate schemes involving imbalanced trades and even bribing Chinese government officials.

Bankman-Fried faces seven fraud charges in this trial. Even if found innocent, he is slated for a second trial in March, facing additional counts. The courtroom drama continues, unfolding a scandalous tale that has gripped the crypto community.

SBF’s Former Flame Reveals Startling Secrets

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Former Alameda CEO Caroline Ellison, a pivotal witness in the SBF trial, recently testified in a courtroom filled with tension and anticipation. Mincing no words, Ellison revealed that she had carried out fraudulent actions under the influence of her ex-boyfriend, who was also the founder of the FTX exchange at the time. The focal point of the case against SBF revolves around the transfer of billions of dollars from customer accounts at FTX to Alameda. This significant financial movement left Alameda with a substantial deficit in its balance sheet after the cryptocurrency markets took a downturn in 2022.

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Image Credit: Jacob Silverman

Appearing as a key witness for the government, Ellison was asked about her involvement in criminal activities and the individuals she collaborated with. In response, she confessed, “I sent balance sheets at the direction of SBF that made Alameda’s balances look less risky to investors.” She also admitted that Alameda had utilized funds from FTX for its own investments, following Bankman-Fried’s instructions to utilize FTX funds while also ensuring that a portion of the money remained within FTX to fulfill customer withdrawal requests.

A considerable portion of these funds was directed towards loans extended to individuals within SBF’s inner circle. These funds were utilized for various purposes, including investments and political contributions. Ellison disclosed that Bankman-Fried believed the political donation strategy was highly effective, offering substantial political influence at a relatively low cost. However, she expressed her discomfort with the loans provided to insiders, stating, “I had reservations; it appeared as if Alameda was channeling funds to FTX executives.”

SBF Vs Ellison’s Tangled Legal Drama

Ellison’s testimony was fraught with personal history, marked by her guilty plea to fraud and conspiracy charges the previous year. Throughout the trial, both sides engaged in a heated exchange, with Bankman-Fried’s attorney, Cohen, attempting to shift blame onto Ellison. Cohen suggested that her financial decisions had left the companies vulnerable to market fluctuations.

Ellison’s testimony adds to a growing list of former FTX insiders who have spoken out against Bankman-Fried. Adam Yedidia, a former FTX developer and part of SBF’s inner circle, had previously told the jurors that Alameda’s actions seemed blatantly unethical. The courtroom drama continues to unfold as more witnesses shed light on the intricate web of financial misconduct involving prominent figures in the cryptocurrency industry.

Crypto Advocate Deaton Opposes SBF Supporters Amid Ongoing Legal Trials

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In the crypto realm, John Deaton, a notable legal figure and fervent advocate for the digital currency space, has certainly expressed his disapproval of the supporters of ex-FTX CEO Sam “SBF” Bankman-Fried. This comes amid the legal proceedings entangled with the downfall of their cryptocurrency enterprise. John Deaton’s impassioned stance underscores the gravity of the situation, shedding light on the intricacies of this crypto controversy.

Prominent crypto advocate Deaton, on X (formerly Twitter), contends that depicting SBF as well-intentioned but financially mistaken is misguided. He opposes granting sympathizers platforms like CBS’s 60 Minutes, stressing the need for accurate representation in crypto. This candid statement highlights the ongoing discourse about SBF’s industry role.

SBF Allegations Divide Crypto Community

The crypto realm is divided, with some expressing deep concern over SBF’s alleged involvement in investor fraud while others seek to cast him in a positive light in the media. Even after FTX declared bankruptcy, SBF continued to make public appearances, often portrayed as a luminary, sparking discontent within the Web3 community.

FTX has managed to recover an impressive $7 billion in assets successfully. Nevertheless, an increasing chorus is calling for SBF’s sentencing to serve as a stark deterrent for other pioneers in the industry. John Deaton is resolute in holding Joseph Bankman and Barbara Fried, SBF’s parents, accountable for their alleged involvement.

While FTX’s present leadership aggressively pursues legal action, it’s worth noting that regulatory agencies have, thus far, refrained from initiating legal proceedings against SBF’s parents. John Deaton is not alone in his belief that Bankman and Fried bear full responsibility for their son’s purported misdeeds — a sentiment echoed by several industry insiders.

According to a recent report, Stanford University has opted to return the entirety of its donations from FTX, totaling approximately $5.5 million. The move underlines the gravity of the situation and the broader impact of the controversy surrounding SBF and FTX.

FTX Co-Founder’s Shocking Allegations: SBF Accused of Customer Fund Theft

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During the ongoing trial of Sam Bankman-Fried (SBF), co-founder of FTX, Gary Wang, another co-founder, has made a significant claim. In his testimony before a New York Jury last Friday, Wang asserted that SBF had misappropriated customer funds right from the inception of this exchange. According to Wang, Bankman-Fried had authorized the illicit utilization of customers’ funds and assets to cover financial shortfalls at an associated hedge fund, Alameda Research, from the very early days of the exchange.

On Wang’s second day of testimony, he revealed that the losses incurred at Alameda Research had grown to such an extent that concealing them became impossible. He referred to SBF’s infamous tweet just before the exchange’s collapse, stating that “FTX was not fine.” The prosecution in the case alleges that SBF pilfered millions from customers during and after the FTX collapse, using the funds to finance his extravagant lifestyle and political campaigns.

Gary Wang, who served as FTX’s chief technology officer, is among several executives who have agreed to provide testimony against Bankman-Fried in exchange for leniency in their own criminal cases. As part of his agreement with prosecutors, Wang has pleaded guilty to wire fraud, securities fraud, and commodities fraud. In his recent testimony, Wang informed the jury that, at SBF’s direction, he implemented code within this exchange’s operations that granted Alameda Research the capability to make nearly unlimited withdrawals from FTX. Alameda Research had a line of credit of up to $65 billion within FTX.

Wang added, “It withdrew more funds than it had on the exchange,” emphasizing that the money withdrawn “belonged to FTX customers.” The losses incurred by Alameda had escalated to as much as $14 billion before the collapse of this exchange, and Wang expressed doubt about Alameda’s ability to repay this colossal amount.

FTX-Linked Hack Triggers Temporary Suspension of THORSwap Platform

A developer from THORSwap conveyed the team’s strong stance against any form of criminal activity. Following this development, the individual known as the “FTX Exploiter” began transferring funds into Threshold Network’s tBTC tokens. THORSwap exchange, on Friday, announced its transition into a “maintenance” mode as a response to a sequence of transactions that were illicitly linked to the platform over the past few days.

These transactions included several originating from the infamous “FTX Exploiter” wallet, which siphoned off funds from Sam Bankman-Fried’s FTX exchange in the aftermath of its bankruptcy last year. According to blockchain investigator Lookonchain, the exploiter commenced swapping ether (ETH) into Threshold Network’s tBTC tokens early on Friday. tBTC represents a bridged version of bitcoin (BTC).

“Yesterday, following a careful evaluation of the situation and consultation with advisors, legal counsel and law enforcement, the decision was made to temporarily transition the THORSwap interface into maintenance mode,” THORSwap developers said in a tweet.

This action effectively puts a halt to trading operations. Nevertheless, functionalities such as lending, borrowing, and staking remain fully operational.

THORSwap operates on the THORChain network, enabling users to freely exchange tokens across different blockchains.

In November 2022, shortly after FTX and its affiliated companies declared bankruptcy, an unidentified entity successfully emptied numerous wallets, amassing a total of up to $600 million.

Just last week, the individual responsible for the hack, whose identity remains undisclosed to this day, managed to transfer over 15,000 ether through various platforms, including THORSwap. The sudden movement of these funds, occurring on the eve of Sam Bankman-Fried’s criminal trial this week in a federal court in New York, has deepened one of the ongoing mysteries surrounding the collapse of the exchange last year.