In accordance with new courtroom filings, disgraced FTX founder Sam Bankman-Fried (SBF) can be topic to the forfeiture of roughly $700 million price of property if he have been to be discovered responsible of fraud.
In a courtroom doc filed on Jan 20, U.S. federal prosecutor Damian Williams outlined that the “authorities respectfully offers discover that the property topic to forfeiture” covers an extended record of property throughout fiat, shares and crypto.
The filings state that a lot of the property have been seized by the federal government between Jan.4 and Jan. 19, whereas additionally it is trying to lay declare to “all monies and property” belonging to a few separate Binance accounts.
Trying on the record of seized property, the largest allocations embody 55,273,469 Robinhood (HOOD) shares price roughly $525.5 million on the time of writing, $94.5 million held at Silvergate Financial institution, $49.9 million held at Farmington State Financial institution and $20.7 million at ED&F Man Capital Markets, Inc.
The federal government has submitted a forfeiture order on this occasion because it alleges that these property have been obtained unlawfully by way of using buyer deposits.
Whereas members of SBF’s inside circle equivalent to Caroline Ellison and Gary Wang have fessed up and cooperated with prosecutors over their roles in FTX’s collapse, the person himself has pleaded not responsible to all eight prison prices laid towards him.
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FTX roped in African traders with inflation hedge advertising and marketing
In different FTX-related information, a Jan. 18 report from the Wall Road Journal (WSJ) highlighted poorly aged advertising and marketing that the alternate launched in Africa not too lengthy earlier than it went bankrupt in November.
The marketing campaign in query touted USD-pegged stablecoins as safer investments than native currencies regarding inflation, whereas additionally selling the potential to earn 8% yearly by way of staking rewards applications.
Whereas these inflation sentiments could usually be true provided that African currencies such because the Nigerian naira and Ghanaian cedi have plummeted towards the USD, any African FTX buyer persuaded by the advertising and marketing after all went on misplaced funds when the agency went bankrupt.
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Former FTX schooling lead for Africa Pius Okedinachi advised the WSJ that round that the alternate oversaw round $500 million price of month-to-month buying and selling quantity in Africa, with a lot of the quantity coming from Nigeria.
Notably, simply eight days earlier than FTX filed for chapter, SBF additionally promoted FTX’s providers to West Africa, saying in a Nov. 3 tweet that the alternate had began accepting deposits in West African CFA francs.