FTX | FinTelegram News

Tag: FTX

September 27, 2024

Plaintiffs Lawyers of FTX Clients Lawyers Settle Feud With FTX Estate!

FTX was a major U.S. crypto exchange that collapsed in November 2022 amid allegations of fraud and misuse of customer funds. Plaintiffs' lawyers in the FTX litigation in Miami federal court have reached a deal with lawyers for the bankrupt company, resolving a fight that erupted earlier this year over who owns the right to sue on behalf of customers of the crypto exchange.

September 25, 2024

Caroline Ellison Sentenced to Two Years for Role in FTX, The ‘Greatest Financial Fraud’ In U.S. History!

Caroline Ellison, 29, a central figure in the scandal around the collapsed U.S. crypto exchange FTX, has been sentenced to two years in prison despite her substantial cooperation with prosecutors. The former FTX CEO Sam Bankman-Fried (SBF) has received a 25-year prison time. Her case emphasizes that even those who assist law enforcement may still face incarceration in cases involving large-scale fraud.

Auditors
SEC

September 18, 2024

Audit Firm Prager Metis Settles SEC Charges for Negligence in FTX Audits!

Auditor firm Prager Metis’s negligence in auditing FTX stripped investors of crucial protections, ultimately exposing them to the collapse of one of the biggest crypto frauds in history. The firm agreed to pay $1.95 million to settle charges related to the FTX audits and separate auditor independence violations. The U.S. SEC’s action underscores auditors' vital role as financial gatekeepers.

September 15, 2024

Timing is Everything: FTX Founder Sam Bankman-Fried Fights Conviction as FTX Estate Sits on Billions!

Sam Bankman-Fried (SBF), the convicted former CEO of FTX, is seeking a new trial. He claims that the judge presiding over his case showed bias and repeatedly ridiculed him in front of the jury. His legal team argues that Judge Lewis A. Kaplan's conduct, including alleged disapproving facial expressions and frequent interruptions, violated SBF's constitutional rights to a fair trial. This appeal adds a new twist to the high-profile case surrounding the collapse of the crypto exchange FTX.

September 12, 2024

Crypto Crime Case FTX: Caroline Ellison Seeks No Jail Time for Role in FTX Fraud

Caroline Ellison, a former top executive in the collapsed crypto exchange FTX and former girlfriend of FTX CEO Sam Bankman-Fried, is seeking no prison time at her sentencing later this month. The lawyers cited her immediate and extensive cooperation with U.S. authorities when FTX collapsed in November 2022 and noted that the court's Probation Department recommended that she serve no prison time.

September 4, 2024

SEC and Bankrupt Crypto Exchange FTX in Dispute Over Repayment Plan

Bankrupt cryptocurrency exchange FTX has proposed a plan to repay its creditors using U.S. dollar-pegged stablecoins, aiming to distribute between $14.5 billion to $16.3 billion—about $5.3 billion more than the initial owed amount. However, the U.S. Securities and Exchange Commission (SEC) may oppose this plan and has indicated it reserves the right to challenge the proposed transactions, Benzinga reports.

Crypto

August 14, 2024

Austrian Crypto Exchange BitPanda’s Sponsorship of AC Milan: A Double-Edged Sword for Investors

The Austrian crypto exchange BitPanda's recent announcement of a strategic partnership with AC Milan, one of Europe's most iconic football clubs, marks yet another instance of a cryptocurrency platform venturing into the world of sports sponsorship. While such high-profile partnerships may lend credibility and visibility to the crypto platform, they also raise critical questions about the underlying motives and the potential risks for investors.

August 9, 2024

Breaking: CFTC Secures Historic $12.7 Billion Judgment Against FTX and Alameda in Landmark Fraud Case!

The U.S. Commodity Futures Trading Commission (CFTC) has announced that the U.S. District Court for the Southern District of New York has issued a consent order of permanent injunction and equitable relief against FTX Trading Ltd. and Alameda Research LLC. The court ordered the now-bankrupt entities to pay a staggering $12.7 billion in monetary relief to compensate customers and victims of one of the largest frauds in the digital asset space.

August 2, 2024

Montenegro to Extradite Terraform Labs Co-Founder Do Kwon to South Korea, Rejecting U.S. Request

The delivery procedure has been going on for many months now and seems to be coming to an end. The co-founder of Terraform Labs and accused fraudster, Do Kwon, is set to be extradited from Montenegro to his native South Korea following a ruling from Montenegro’s Appellate Court. This decision confirms an earlier ruling by the High Court of Podgorica, prioritizing South Korea's extradition request over that of the United States.

July 23, 2024

Administrator of Bankrupt Crypto Scheme BlockFi Submits Plan in Court to Make Customers Whole!

The administrator of the bankrupt U.S. crypto lender BlockFi has submitted a comprehensive plan to the U.S. Bankruptcy Court for the District of New Jersey, seeking approval for a final distribution aimed at making customers and unsecured creditors whole. This move marks a significant step towards concluding the wind-down process that began after BlockFi filed for Chapter 11 bankruptcy in November 2022.

July 20, 2024

Bitzlato Founder Sentenced to Time Served over $700 Million Money Laundering Case!

On July 18, Judge Eric Vitaliano of Brooklyn's federal court sentenced Anatoly Legkodymov, the founder of the Bitzlato cryptocurrency exchange, to 18 months in prison, equivalent to the time he had already served. Legkodymov's sentencing followed his guilty plea to operating an unlicensed money-transmitting business that concealed over $700 million in illegal proceeds from activities such as gambling and drug transactions.

July 10, 2024

Ex-FTX Executives to Be Sentenced Following Testimonies Against Sam Bankman-Fried

FTX, once a leading U.S. crypto exchange, filed for bankruptcy in November 2022 after allegations of financial misconduct surfaced. The company's founder, Sam Bankman-Fried (SBF), was accused of orchestrating a massive fraud that resulted in losing $8 billion in customer funds. In March 2023, SBF was convicted and subsequently sentenced to 25 years in prison, marking one of the most significant financial fraud cases in U.S. history.

Binance Chief Financial Crime Compliance Officer Denied Bail in Nigerian Case!

Think twice before starting to work for the world's larger crypto exchange. As Binance’s financial crime compliance officer faces money laundering charges in Nigeria, questions mount over the company’s compliance safeguards and the risks involved in its global operations. The denial of bail for Tigran Gambaryan and the ongoing legal battle could have far-reaching implications for the company’s future.

Fintech

Solaris Bleeds Cash and Jobs: Can This High-Risk Fintech Survive, Let Alone IPO?

Solaris, a German fintech and neobank, has a long history of compliance troubles. Moreover, its ongoing financial losses and regulatory woes doubt its long-term profitability, even as it sheds jobs and restructures for survival. A potential IPO, as rumored by the German platform Gründerszene, seems speculative at best in light of its deep-rooted issues with compliance and financial stability.

Breaking: The Binance-Like $3.1 Billion Money Laundering Settlement of TD Bank!

TD Bank, one of North America's largest financial institutions, has been hit with a historic $3.1 billion settlement over money laundering violations. This case represents one of the most significant AML enforcement actions in U.S. history, both in terms of the financial penalties imposed and the severity of the admitted misconduct. Only Binance, with its $4.1 billion settlement, was even larger.

Gotbit and Russian Executives Charged by U.S. DOJ and SEC for Crypto Market Manipulation!

Gotbit Consulting LLC, along with its Russian executives, has been charged by the U.S. DOJ and SEC for its role in a widespread market manipulation scheme. By using wash trades, Gotbit inflated crypto asset prices and volumes, deceiving investors and raising millions in illicit profits. The company’s fraudulent activities were executed across multiple jurisdictions, with key figures now facing extradition and prosecution.

SEC Charges Market Manipulators in Crackdown on Crypto Asset Fraud

The U.S. SEC has charged three market makers and nine individuals for manipulating the crypto asset market, generating artificial trading volumes and misleading retail investors. The fraudulent schemes created the illusion of active markets, prompting unsuspecting investors to pour money into manipulated crypto assets. The DOJ filed criminal charges against the scheme operators in a parallel transaction.