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Tag: FTX

March 27, 2024

The Ripple Effect: Sentencing of Crypto Titans and the Responsibility of Crypto Executives!

In a narrative that reads like a thriller, the founders and executives of some of the most prominent crypto exchanges are facing severe legal repercussions. The upcoming sentencings of Sam Bankman-Fried (SBF) of FTX and Changpeng Zhao (CZ) of Binance are pivotal moments that could set a precedent for the treatment of other crypto founders, including Chun Gan and Ke Tang of KuCoin. The authorities hold the executives of crypto exchanges accountable for their involvement in the illegal activities of these exchanges.

March 24, 2024

Pre-Sentencing: The Legal Reckoning of Sam Bankman-Fried and the Cautionary Tale of FTX!

In the coming weeks, the legal fate of two prominent figures in the crypto world will unfold, with Sam Bankman-Fried (SBF), founder of the now-defunct FTX platform, set to receive his sentence. Concurrently, Changpeng Zhao (CZ), the co-founder and former CEO of Binance, awaits his sentencing on April 30, 2024, after he pleaded guilty to violating US financial regulations. The prosecution has proposed sentences spanning several decades for SBF and no less than 18 months for CZ, hinting at the gravity of their offenses.

March 10, 2024

MicroStrategy’s Bitcoin Bet: Michael Saylor’s Bold Strategy Amidst Crypto Turbulence!

As the founder of MicroStrategy, Michael Saylor stands out not just as an executive but as one of the most fervent Bitcoin advocates on the global stage. His unwavering belief in Bitcoin has shaped MicroStrategy's strategic direction, marking it as a unique case study in corporate crypto investment. Despite navigating through the tumultuous crypto winter of 2022, which saw the collapse of major crypto players, Saylor's Bitcoin-centric strategy appears to be regaining its footing.

March 1, 2024

SEC Challenges Terraform Labs ‘Suspicious’ $166 Million Legal Fees To Law Firm Dentons!

In a move that underscores the ongoing tensions between regulatory bodies and crypto enterprises, the U.S. SEC has raised objections to Terraform Labs' financial arrangements for its legal defense during its bankruptcy proceedings, Reuters reports. The SEC's concern centers around a substantial $166 million transferred to the law firm Dentons since early 2023, suggesting these funds might be an attempt by Terraform to shield assets from a potential adverse judgment in a fraud case brought by the SEC.

February 28, 2024

Breaking: Convicted FTX Founder Sam Bankman-Fried Seeks Leniency in Sentencing!

Sam Bankman-Fried (SBF), the founder of the now-defunct crypto exchange FTX, has approached a Manhattan federal court, seeking a considerably reduced sentence following his conviction for a multi-billion-dollar fraud. In a late-night plea to U.S. District Judge Lewis A. Kaplan, SBF advocated for a sentence of no more than six-and-a-half years in prison, a stark contrast to the federal sentencing guidelines that suggest a maximum of 110 years.

February 27, 2024

FTX Strikes $33 Million Deal to Resolve Dispute Over European Venture

The bankrupt crypto exchange FTX has reached a $33 million settlement regarding its contentious European expansion effort. This resolution comes after FTX sought to recover $323 million spent on acquiring a European startup, a venture that has now concluded with the company being sold back to its original founders for $32.7 million. The heart of this dispute lay in FTX's 2021 acquisition of Digital Assets DA AG, a Zurich-based company that was rebranded as FTX Europe.

February 18, 2024

Deltec Bank Faces Accusations of Secretly Funding Sam Bankman-Fried in Tether Purchase Scheme

In a significant development that intertwines finance, cryptocurrency, and legal drama, Deltec Bank & Trust Ltd., a Bahamian financial institution, is under scrutiny for its alleged role in providing covert financial support to Sam Bankman-Fried, the former CEO of collapsed crypto exchange FTX. This accusation adds a new layer to the already complex bankruptcy and restructuring process of FTX, further complicating the saga with the latest indictment of Deltec Bank.

February 16, 2024

Russian Cybercrime Syndicates Suspected Behind $400 Million FTX Heist, U.S. Trio Merely Pawns in Global Scheme!

On 18 January 2024, an indictment against three U.S. nationals—Robert Powell, Carter Rohn, and Emily Hernandez—shed light on a sophisticated cybercriminal operation. These individuals, accused of orchestrating a SIM Swap attack that led to the theft of $400 million in virtual currency from FTX, are believed to have been mere instruments in a broader scheme potentially orchestrated by Russian cybercrime groups.

February 9, 2024

Montenegro Court Halts Extradition of Terra Co-Founder Do Kwon

The Montenegro Court of Appeals has halted the extradition of Terra's co-founder, Do Kwon, to South Korea and the U.S., marking a pivotal moment in the ongoing legal saga surrounding the crypto entrepreneur. Kwon recently requested a delay of the trial in the fraud lawsuit of the U.S. SEC. While FTX founder Sam Bankman-Fried and Binance founder Changpeng Zhao wait for their sentencing, Kwon's court procedures in the U.S. have not yet started.

February 1, 2024

Creditors Of Collapsed Crypto Exchange FTX May Get Fully Refunded!

Bankrupt crypto exchange FTX has communicated to the court overseeing its bankruptcy proceedings its intention to repay customers and creditors in full. This statement came from the company's legal representative during a court hearing. He emphasized that while the aspiration to fully compensate its creditors exists, it should be perceived as an ambitious goal rather than an absolute promise, given the substantial challenges and risks that lie ahead.

January 14, 2024

Terraform Labs Founder Do Kwon Requests Trial Delay Amid Extradition Procedures!

Do Kwon, the former CEO of Terraform Labs, is facing a prolonged legal battle, with his legal team now expecting delays in his extradition proceedings from Montenegro. These delays could postpone Kwon's arrival in the U.S. for his trial with the U.S. Securities and Exchange Commission (SEC) until February or March 2024. Terra's collapse in May 2022 led to a severe bear market and the bankruptcy of several large crypto schemes.

January 3, 2024

FTX Bankruptcy Saga: A Legal Labyrinth That Could Outlast the Next Crypto Bull Run Amid Controversial Legal Decisions!

The prolonged legal battles surrounding the bankruptcy of FTX highlight that the resolution process could extend beyond the duration of the next anticipated crypto bull run. According to Alan R. Rosenberg, a Markowitz Ringel Trusty & Hartog partner, the FTX case is poised to be more protracted than other crypto bankruptcies like Celsius and BlockFi, primarily due to the complex clawback claims being pursued.

The Unraveling of Rabidi and the Rise of the SoftSwiss Network: Our Updated Forensic Report

A few months ago, FinTelegram released a first forensic report on the bankruptcy of Rabidi N.V., a Curacao-registered online casino operator with hundreds of millions in revenues — and no traceable assets by the time of its collapse in May 2024. That report already raised serious questions about the opaque structures behind Rabidi’s operations and its successor, Liernin Enterprises Ltd.

DeFi Decoded: Smart Contracts – The Code Behind the DeFi Revolution

Smart contracts are the invisible architects of decentralized finance. These self-executing lines of code run everything from token swaps to lending platforms without middlemen. But while they offer autonomy, they also introduce new risks—bugs, exploits, and irreversible mistakes. In this fourth installment of our FinTelegram DeFi Series, we explain what smart contracts are.

CFTC

Despite New Crypto Friendlyness: No Settlement Between U.S. CFTC And KuCoin?

A planned settlement between the U.S.CFTC and crypto exchange KuCoin is now in limbo due to a reported policy shift within the CFTC. This change is attributed to the Trump administration’s new approach, which deprioritizes enforcement actions against crypto companies. As a result, a CFTC attorney said that it is "unlikely that such authorization will be granted in the near term" regarding the settlement approval.

SEC’s New Era: Paul Atkins Sworn In—Will Crypto Finally Get the Regulatory Clarity It Deserves?

The U.S. Securities and Exchange Commission (SEC) has entered a new chapter with the swearing-in of Paul S. Atkins as its 34th Chairman, a move widely anticipated to mark a dramatic pivot in how the agency approaches crypto and DeFi regulation. For years, the financial industry—especially the burgeoning digital asset sector—has bristled under the SEC’s “Regulation by Enforcement” strategy.

Crypto Mogul Changpeng Zhao – Fallen, Rich, and Rising Again?

As spring 2025 blooms and Easter’s themes of rebirth fill the air, Changpeng Zhao emerges as one of the most controversial figures of startup mythology: a man who fell spectacularly, paid a price—then rose again, wealthier and louder than ever. Once the almighty architect of Binance, CZ now resides in Dubai with a net worth that Forbes estimates at $63 billion.