At the end of December, Bankman-Fried and other executives of FTX they conferred they received billions of dollars in secret loans of Alameda Research, the hedge fund of the cryptocurrencies.
“Mr. Wang created this back door by inserting a single number into millions of lines of code for the exchange, creating a line of credit from FTX to Alameda, to which the customers did not give their consent”, he added. “And we know the size of that line of credit. It was from 65,000 million dollars“, accurate.
The Commodity Futures Trading Commission (CFTC) he made similar accusations when he filed charges against Wang in December. But Until now, the value of that line of credit had not been discussed. The CFTC described it at the time as “virtually unlimited,” Business Insider reported.
Some time ago, Reuters quoted anonymous sources as saying that Bankman-Fried “had moved $10 billion between the two companies, with another $2 billion still unaccounted for”.
Dietderich declared in court that with the 65,000 million from the back door, Alameda “bought planes, houses, gave parties, made political donations”.
In fact, it should be remembered that Bankman-Fried is the second largest donor to Democratic causesbut claimed he donated the same amount to Republicans using “dark” money.
“They were also registered in the name of FTX Bahamas real estate worth $256.3 millionincluding 15 condos in the same building. Other court documents say that FTX spent $6.9 million on “dining and entertainment” in only nine monthssaid BI.
In this regard, Dietderich said that “the rest of the money went to personal loans, sponsorships and investments”.
“We know that all this has left a deficit, in value to reimburse clients and creditors”, he acknowledged. That amount “will depend on the size of the claim pool and our recovery efforts.”
The court heard that FTX had so far recovered $5 billion in cash, cryptocurrencies and securities, with “plans to monetize over 300 other non-strategic investments” worth $4.6 billion.
Federal prosecutors in Manhattan claimed last month that Bankman-Fried stole billions of dollars from FTX clients to pay off debts from its cryptocurrency-focused hedge fund, Alameda Researchbuy luxurious real estate and make donations to American political campaigns.
“I didn’t steal funds and I certainly didn’t hide billionsBankman-Fried wrote in a blog post on Substack, in a rare public statement from a US criminal defendant. It is planned that his trial begins on October 2, 2023.
In the post, Bankman-Fried did not directly address many of the other charges brought against him by federal prosecutors in Manhattan last month, namely that misled investors and lenders about the financial conditions of FTX and Alameda.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
