A week ago, FTX's Sam Bankman-Fried was seen as crypto’s leading champion. Now his company has filed for bankruptcy, and the 30-year-old is facing multiple federal investigations.
An outwardly genial 30-year-old commonly referred to as SBF, Mr. Bankman-Fried was until this week
The Binance founder said the move was for “risk management” purposes, citing a recent report on crypto website CoinDesk revealing that billions of dollars worth of the illiquid token were sitting on the balance sheet of FTX’s sister firm, Alameda. “I’m deeply sorry that we got into this place, and for my role in it,” he wrote in the Slack message. “That’s on me, and me alone, and it sucks, and I’m sorry, not that that makes it any better.”
Alameda and FTX haven’t yet detailed what happened to the missing money, though Mr. Bankman-Fried has promised to share more information. Alameda was known to engage in risky trading strategies and was more vulnerable to volatility in the crypto markets than FTX. “The question now is can you trust any crypto investment,” Mr. Dolev said. “Will it expire worthless in a matter of seconds?”
Mr. Bankman-Fried grew up on the campus of Stanford University, near a student house known for its vegan food and nude Halloween parties. His parents are both professors at Stanford Law School: Joseph Bankman, a tax-law expert, and Barbara Fried, who studies the intersection of law, economics and philosophy.BENOIT TESSIER/REUTERS
At the time, Alameda was working on a project to launch a crypto exchange. It launched in May 2019, under the name FTX, shorthand for “Futures Exchange.” Binance became one of FTX’s first investors. The Sequoia team wasn’t aware at the time, but Mr. Bankman-Fried made his pitch while in the middle of a videogame, “League of Legends,” he later acknowledged in the Sequoia article.
Regulation was a point of contrast between the two firms. Last year, governments around the world including the U.K., Italy and Japan warned Binance for offering unregistered crypto products, forcing it to pull back from some markets. The firm faced mounting scrutiny from the financial press for refusing to say where its headquarters were—an approach that critics said helped Binance evade regulation and dodge liability for mishaps.
Some in the crypto world were thrilled Mr. Bankman-Fried was emerging as the industry’s public face. Mr. Zhao, a Chinese-born citizen of Canada, launched Binance while living in China. His ties to the country, as well as the regulatory scrutiny of Binance, have complicated his relationship with Washington and made it hard for Mr. Zhao to serve as a crypto spokesman. Binance rejects claims it is a Chinese company and says its employees left the country after a 2017 crackdown on crypto exchanges.
Asked by one of the Bahamian officials if FTX needed any infrastructure or other help from the local government, Mr. Bankman-Fried was curt, saying he wanted the country to permit
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
FTX chief Sam Bankman-Fried resigns as firm files for bankruptcyFTX, one of the world’s largest cryptocurrency exchanges, announced on Friday it will file on bankruptcy, with its CEO, Sam Bankman-Fried, stepping down in the wake of a trading scandal that has embroiled the firm in regulatory inquiries.
Consulte Mais informação »
Sam Bankman-Fried Says Alameda Winding Down, Promises US Customers 'Fine'JUST IN: SBF_FTX says his trading firm AlamedaResearch is being wound down. inkbacker reports
Consulte Mais informação »
Sam Bankman-Fried apologizes over FTX liquidity crisis: 'I fucked up twice'FTX CEO Sam Bankman-Fried admitted to investors he “should have done better” in providing transparency on the situation with FTX.
Consulte Mais informação »
Wall Street Bank Jefferies Had Concerns About Sam Bankman-Fried in July.HandlerRich, the CEO of banking giant Jefferies Financial Group, revealed a series of emails that expressed concerns as early as July that SBF_FTX was overextended. BrandyBetz reports
Consulte Mais informação »
‘I f–ked up’: FTX’s Sam Bankman-Fried makes profanity-laced apology as collapse loomsThe FTX founder admitted that he was “substantially off on my sense of users’ margin.”
Consulte Mais informação »