Alameda was exempt from FTX's automated risk engine; its value largely made up of illiquid FTT tokens, and it manipulated FTT market price, at SBF's directions. - cryptocurrency sbf
: Jorge G. Tenreiro, David L. Hirsch , Ladan F. Stewart, Amy Harman Burkart, David J. D'Addio - Attorneys for the PlaintiffC. Defendants Knew that FTX Had Poor Controls and Deeply Inadequate Risk Management Procedures, in Stark Contrast to Bankman-Fried’s Claims that It Was a Mature, Conservative Company.
61. FTX also promoted itself as a company that was willing to work collaboratively with regulators and lawmakers. In the same materials, FTX claimed: And the last thing I will say is if you look at what precipitated some of the 2008 financial crisis, you will see a number of bilateral, bespoke, non-reported transactions happening between financial counterparties, which then got repackaged and releveraged again and again and again, such that no one knew how much risk was in that system until it all fell apart.
while failing to disclose that Bankman-Fried had directed Wang to ensure that the engine not apply to one of its largest customers. As a result, even if FTX had liquidated Alameda’s portfolio, the sales of those thinly traded tokens would not have generated sufficient funds to cover the amount Alameda borrowed from FTX.
b. Alameda Manipulated the Market Price of FTT and, as a Result, Further Inflated the Value of Its Collateral. 79. FTX used the pooled proceeds from FTT sales to fund the development, marketing, business operations, and growth of FTX, depending on the success of FTX and its management team in developing, operating, and marketing the trading platform. If demand for trading on the FTX platform increased, demand for the FTT token could increase, such that any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings.
83. The FTX whitepaper further explained: “We have carefully designed incentive schemes to increase network effects and demand for FTT, and to decrease its circulating supply.” The FTT materials stated that the token provided investors with fee rebates and discounts on FTX, and the ability to use the token as collateral for futures positions as well as for “margin trading” that FTX promised to launch “in the future.
87. FTX also marketed FTT as an asset that could be used in an “earn program” or in “staking programs” , as additional ways in which investors could earn returns from FTT.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto winter did not spare FTX or Alameda, although SBF pretended that it didn't | HackerNoon...and he did so by using stolen FTX customers' funds to 'rescue' other industry players like Blockfi, per lawsuit - cryptocurrency sbf
Read more »
Did SBF Just Cash Out $684K?The FTX boss allegedly withdrew the funds via a non-KYC platform and Ren Protocol despite court restrictions.
Read more »
SBF sent home and Binance gets Voyager assets: Hodler’s DigestBinance wins bid for Voyager assets, Sam Bankman-Fried is released in the US on bail and Genesis creditors seek a solution for withdrawals.
Read more »
Sam Bankman-Fried denies moving funds from Alameda walletsSBF’s claim was in response to an article published by Cointelegraph which alleged that a wallet address had received over 600 ETH from wallets belonging to Alameda.
Read more »
Landslide shuts down Calif. state Route 84 in Alameda CountyCalifornia state Route 84 was shut down in part of Alameda County on Friday due to a mudslide.
Read more »