• Tue. May 28th, 2024

Seizure Of SBF Assets Continues Due To Extreme Mismanagement

Feb 10, 2023

Sam Bankman-Fried lost almost everything when the FTX crashed in November, which caused the whole cryptocurrency market to fall.

Since then, more exchanges and funds on the platforms, such as BlockFi, that were related to FTX have gone down. The group’s founder, Sam Bankman-Fried (SBF), was later jailed in the Bahamas.

The government tried to hold the person responsible for the losses of the exchange. This was the first way to figure out how important something was.

After he was released on a $250 million bond, the federal government took his money and property. People don’t want anything to do with him or his ongoing drama, so he has lost a lot of professional connections. But it’s still not over.

The Government Has Seized About $700 Million In FTX Assets

In the third week of January 2023, the federal government took about $700 million worth of Sam Bankman-assets Fried’s and cash. Most of these were Robinhood shares.

The dispute between BlockFi employees, SBF, Caribbean plaintiffs, and FTX bankruptcy leaders is all about shares. The fight goes on.

SBF announced the purchase of 7.6% of Robinhood in May 2022, citing it as a good investment. The transaction was made public.

The federal prosecutor says SBF bought Robinhood shares with money from customers. Still, he has denied taking consumer assets without permission.

The accounts were in Silvergate Bank, under the Bahamian branch of the exchange, FTX Digital Markets. They had more than $6 million in them.

Around January 11, the government bought the land. As it turned out, client deposits at Silvergate dropped by 70% in the fourth quarter of 2022.

At Moonstone Bank, $50 million was found. It came out that the bank had ties to the management of FTX.

The rest of the money was in one account on Binance and two accounts on Binance. The US.

However, the government has not yet said how much each is. During this time, $20,7 million was taken from ED&F Man Capital Market, Inc.

About Half A Billion Dollars Was Taken From Farmington Bank

Farmington, which changed its name to Moonstone, was a three-person bank in rural Washington that gave loans to farmers.

It was the 26th smallest bank out of 4800 in the United States. It served a town of fewer than 146 people.

In 2010, sources said the bank was in a small building that was about the size of a studio apartment. There were no credit cards or online banking options.

But in March 2022, SBF put $11.5 million into the bank through his hedge fund. This was four times what the bank was worth at the time.

The bank was set up by the government as a big business for the cannabis industry and digital assets.

When the New York Times wrote about the bank, it had 32 employees and was worth $115 million. Which was about the same as digital banks and trust-bank companies.

Before, deposits of more than $10 million were rare in a decade. By the end of 2022, it had $84 million in savings.

The company changed its name a few days before the Alameda investment, but it did not include cryptocurrency. It only said it wanted to grow the next generation of finance.

It said this week that it will change its name and become a community bank again, where it came from. On January 18, Farmington said that the change in strategy was due to recent changes in the business of crypto assets.

Jean Chalopin bought Farmington State Bank in 2020. Chalopin animated Inspector Gadget in the 1980s.

Deltec, a Bahamas crypto company known for Tether stablecoin transactions, was his chairman.

In 2021, FTX’s subsidiary loaned him $50 million. Alameda purchased a 10% stake in the bank for $11.5 million in early 2022.

SBF insider Ramnik Arora managed this investment. The Information claims Arora was crucial to FTX’s crypto market takeover.

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