On November 9, 2022, a crypto trader and enthusiast that goes by the name “Mr. Chief” on Twitter criticized FTX’s CEO for allegedly lying before US lawmakers about transparency.
In front of a room of lawmakers… pic.twitter.com/7aGWdJ0l9W
— MrChief (@HaloCrypto) November 9, 2022
In his tweet, he commented under a video where Sam was explaining what happened to the lawmakers, and he mentioned transparency being a core component of the FTX exchange.
Several users commented on the post, and most were furious with Sam; some expressed their desire that he deserved to go to jail, while some were very disappointed and believed he had been lying all along.
Others, however, were happy that they had withdrawn their funds before the whole problem started.
The reason for these mixed feelings is no mystery because for some weeks now, FTX and Alameda Research, owned by Sam Bankman Fried, have been accused of mismanaging customers’ funds.
Initially, only Alameda Research was under the radar, but with further investigations, recent developments show that both platforms have been accused of using customers’ funds for personal gains.
This is a criminal offense, punishable under the law, as the United States government’s regulatory policies prohibit such acts.
Binance boss Changpeng Zhao had planned to acquire FTX to save the platform from crashing. However, he backed out of the deal with the recent developments that they may be involved in fraud.
If found guilty, both FTX Exchange and Alameda Research may close down due to bankruptcy. Currently, FTT has crashed to $2.69, representing a 43.34% decrease in 24 hours.
Its market cap has experienced a 40.41% decrease, and its daily trading volume has dropped by 68.58%.
FTX token was ranked among the top ten tokens in the market, but it has since dropped from a lofty high, and it is now ranked 83rd in the crypto market, with a market dominance of 0.04%.