Before November 2022, no one expected that the American cryptocurrency exchange FTX, valued at more than $32 billion, did not experience such a tragic end. Of the colossal losses for the company, its creditors and its founder Sam Bankman-Fried, investments in the thousands, even hundreds of thousands of dollars, lost to its creditors (individuals and institutions included), fall in the prices of cryptocurrencies (Bitcoin, Ethereum, etc. .). The toll is heavy. Now that the young deposed CEO of FTX is called to court to answer for his actions, we provide you with some details that are sure to give you goosebumps.
FTX, the biggest crypto scam of the century?
Do you remember Bernard Madoffthe man who defrauded the largest financial institutions to the tune of 65 billion dollars in 2008 ? The whole world was down when his Ponzi scheme was brought down.
Sam Bankman-Fried, a young, student-looking man who headed the 2e largest cryptocurrency exchange in the world, behind Binance, did the same thing again 14 years later. The crypto media did not hesitate to make the connection between the two scammers once the news broke.
Tens of billions of dollars in losses were reported as soon as FTX fell. Approximately 10 billion dollars to be more precise, including liquid and illiquid assets. In this cryptographic storm, crypto assets of creditors (rich investors, businesses of all kinds, individual investors, etc.) went up in smoke. And it is said that almost 130 companiesincluding Alameda Research, collapsed in the process.
At the same time, the market value of FTX (FTT), estimated at $32 billion at the start of the year, fell drastically. Likewise, the value of the overall crypto market has plunged: 3 trillion dollars mentioned for the month of November 2021 represented nothing more than a simple mirage as soon as the SBF exchange fell.
Whose fault is it ?
For the moment, responsibility for this cryptographic scourge falls to this mama’s boy from Palo Alto, Samuel Bankman-Fried. His setbacks (naming sports infrastructure, crazy spending on advertising, financial support for Democratic candidates, purchase of luxurious goods of all kinds, etc.) have not gone unnoticed by the crypto community.
Nevertheless, young Sam did not fail to point the finger others responsible for the fall of FTX. Among others, he cited Changpeng Zhao (CZ), his eternal rival, who allegedly practiced unfair competition with a view to monopolizing the cryptocurrency market. Our colleagues at Cointelegraph have published a article detailing these mutual accusations the day FTX collapsed.
SBF also mentioned other names among those close to him, like Caroline Ellison, ex-girlfriend and ex-CEO of Alameda Research. The name of the latter is constantly circulating in the Court.
But given how things are developing, the court in charge of the FTX case will not fail to call the parents of Sam Bankman-Fried, Barbara Fried and Joseph Bankman. Both are indeed involved in the launch of the native cryptocurrency FTT. A real
The list could be extended. We are only waiting for the outcome of the FTX affair to hope for the start of reimbursement for the unfortunate victims.
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