• Stride Staked InjectiveStride Staked Injective(STINJ)$16.51-4.18%
  • Vested XORVested XOR(VXOR)$3,404.231,000.00%
  • FibSwap DEXFibSwap DEX(FIBO)$0.0084659.90%
  • TruFin Staked APTTruFin Staked APT(TRUAPT)$8.020.00%
  • bitcoinBitcoin(BTC)$94,700.000.52%
  • ethereumEthereum(ETH)$3,276.87-0.01%
  • rippleXRP(XRP)$2.542.14%
  • tetherTether(USDT)$1.000.00%
  • binancecoinBNB(BNB)$694.75-0.17%
  • solanaSolana(SOL)$188.770.60%
  • Stride Staked InjectiveStride Staked Injective(STINJ)$16.51-4.18%
  • Vested XORVested XOR(VXOR)$3,404.231,000.00%
  • FibSwap DEXFibSwap DEX(FIBO)$0.0084659.90%
  • TruFin Staked APTTruFin Staked APT(TRUAPT)$8.020.00%
  • bitcoinBitcoin(BTC)$94,700.000.52%
  • ethereumEthereum(ETH)$3,276.87-0.01%
  • rippleXRP(XRP)$2.542.14%
  • tetherTether(USDT)$1.000.00%
  • binancecoinBNB(BNB)$694.75-0.17%
  • solanaSolana(SOL)$188.770.60%

FTX Founder Found Guilty on Multiple Charges

Sam Bankman-Fried, the founder of FTX, has been found guilty on seven charges in a recent trial. The trial, which lasted a month, included Bankman-Fried’s testimony in his own defense. Once considered the “king of crypto,” Bankman-Fried now faces the consequences of his actions.

BlockFi CEO Takes the Stand

Zac Prince, the CEO of BlockFi, was a key witness in the trial against Bankman-Fried. Prince revealed that FTX had over $350 million on the exchange and owed over $670 million in loans to FTX’s sister company, Alameda Research. These financial burdens played a significant role in the collapse of both FTX and Alameda Research, as they filed for bankruptcy in November 2022. Prince testified that BlockFi suffered losses of “a little over a billion dollars” due to the collapse.

Unprecedented Failure of Corporate Controls

John Jay Ray III, an attorney specializing in recovering funds from troubled companies, is overseeing FTX’s bankruptcy estate. In a court filing, Ray expressed astonishment at the “complete failure of corporate controls” and the absence of reliable financial information in the case. He pointed to compromised systems integrity, faulty regulatory oversight, and concentrated control in the hands of inexperienced and potentially compromised individuals as contributing factors to the situation.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.” – John Jay Ray III

“From compromised systems integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals, this situation is unprecedented.” – John Jay Ray III

Despite the dire circumstances, FTX debtors have proposed an amended settlement plan that aims to distribute over 90% of the remaining value to customers worldwide if approved. Tim Enneking, Managing Partner at Psalion and CEO of Presearch.com, Inc., commended Ray’s efforts in recovering funds, noting that he has done a remarkable job in filling the $8 billion hole left by FTX.

BlockFi’s Potential Exit from Bankruptcy

On the other hand, BlockFi has recently finalized a restructuring plan that offers hope for client recoveries. The automatic stay has been modified to allow FTX debtors to present arguments and defenses, potentially improving their positions. Mediation is expected to commence by December 24th, 2023, with the aim of reaching a resolution.

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