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Sam Bankman-Fried a.k.a SBF, the former CEO of FTX, acquired a $1 billion personal loan from Alameda Research, one of the four silo firms that played a significant role in the demise of the FTX crypto exchange.
New FTX CEO Spits Facts In Latest Court Filing
John Ray III, the new CEO of FTX, made a formal declaration in the continuing Chapter 11 bankruptcy papers that showed additional financial embezzlement by Bankman Fried. According to the filing, Nishad Singh, Director of Engineering of FTX, also received a $543 million loan from Alameda Research.
Read More: SBF Resigns, John Ray III Joins As New FTX CEO
In his initial submission to the Bankruptcy court for the district of Delaware, John Ray III, the man in charge of putting the facts back together after the iconic fall of Enron, was quite abrasive. He even went on to say that it was the worst thing he had ever seen in his professional career.
Read More: New FTX CEO Blasts SBF In Latest Court Filing
U.S. House Committee To Hold Hearing
As per reports, a hearing on the demise of the cryptocurrency exchange FTX is scheduled to take place in December by the U.S. House Financial Services Committee.
The committee’s chair and ranking member, Reps. Maxine Waters (D-Calif.) and Patrick McHenry (R-N.C.), said in a joint statement that the lawmakers would be interested in learning more about the demise of FTX and its broader ramifications for the cryptocurrency ecosystem.
The FTX Fiasco
As reported earlier on CoinGape, FTX financed Alameda Research, its affiliated trading firm, billions of dollars worth of customer assets to finance risky trades, paving the way for its sudden collapse. With only $1 Billion in liquid assets, it failed to bridge the gap and eventually had to file for bankruptcy.
However, as per recent news, SBF is still not ready to give up as he’s planning to raise alternate sources of funding in a dire attempt to resurrect his debt-ridden FTX crypto exchange.
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