Posted on 06/29/2023 10:50:25 AM PDT by lowbridge
FTX managed to raise $400 million in funding while showing false documents to investors, according to the crypto exchange's new CEO.
John J Ray III made the accusation in a report about the company which was filed with the Delaware Bankruptcy Court on Monday.
He said that Sam Bankman-Fried and one of the company's attorneys created "sham agreements" to make improper financial arrangements with Alameda, its sister hedge fund, look legitimate.
This is a particularly interesting detail because the crypto exchange's implosion last November was provoked by the apparent commingling of funds between FTX and Alameda.
-snip
"In January 2021 as FTX prepared for an audit, Attorney-1 asked an outside law firm to prepare a 'cash management' agreement that could provide an 'explanation' for why Alameda held 'FTX cash . . . for the benefit of the FTX customers,'" the document says.
Basically, this "Payment Agent Agreement" made it seem to auditors that there was nothing wrong with the close ties between the two companies.
Bankman-Fried also didn't use DocuSign — which records the date and time of a signature — as he usually did, and it was backdated by nearly two years, Ray said.
"The FTX Group proceeded to share the false and misleading audited financials with potential investors in connection with its $400 million Series C financing that closed in January 2022," he added.
(Excerpt) Read more at businessinsider.com ...
Was that attorney Dear Old Dad? Or, more likely, is this something he reviewed, since he said that for a while, he was the only lawyer there?
When is any of this going to get this kid sentenced to federal “pound me in the ass” prison?
John J Ray III made the accusation in a report about the company which was filed with the Delaware Bankruptcy Court on Monday.
My take on him is that he is a bull dog. We will be seeing more in the news.
Bankman-Fried loses bid to toss criminal charges over FTX’s collapse
The decision by U.S. District Judge Lewis Kaplan in Manhattan paves the way for an Oct. 2 trial of Bankman-Fried, a 31-year-old former billionaire.
https://www.dailydot.com/debug/ftx-crypto-ukraine-democrats/
One of the more pervasive theories circulating in conservative circles holds that FTX and Ukraine were middlemen in a scheme to funnel United States’ funds to Democrats’ midterms campaigns.
The convoluted claim is based on two simple facts: 1. FTX converted crypto donations to cash for Ukraine’s war effort; and 2. FTX founder Sam Bankman-Fried donated heavily to Democrats. This alone isn’t evidence of anything nefarious, and there are multiple facts undermining the conclusion that there was a scheme to funnel taxpayer funds into Ukraine and then through FTX and ultimately back to Democrats.
long long long list of political donations to..............
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