On the 18th of January 2022, the Former CEO of the imploded crypto exchange, FTX, claimed in a tweet that FTX US has always had more assets than debt.
— SBF (@SBF_FTX) January 18, 2023
Sam Bankman-Fried, the fallen crypto entrepreneur who faces trial on fraud charges, reiterated his claim that the FTX US crypto exchange “was and is solvent.” saying that the statements made by FTX lawyers and debtors are “extremely misleading.”
In a statement on Substack on Tuesday, which he also referenced in his tweet, stating that FTX US likely has “hundreds of millions of dollars above the customers’ balances.”
As a reminder, following the collapse of the FTX crypto exchange, United States prosecutors have charged Bankman-Fried with what they termed ‘fraud of epic proportion’ where he is accused of allegedly embezzling customer funds to benefit his trading firm Alameda Research, buying real estate and making political donations.
He is accused of diverting FTX customers’ funds to the crypto trading firm Alameda Research while raising more than $1.8 billion from investors,” which some allege is an orchestrated years-long fraud scheme in collaboration with the Alameda CEO, Caroline.
In his first court appearance, Bankman-Fried was charged with two counts of wire fraud and six counts of conspiracy, such as money laundering.
SBF was eventually granted a $250 million bond, a decision that has since resulted in criticism from industry players since it’s believed that SBF used embezzled funds to post bail.
He officially entered a not-guilty plea in lieu of the eight charges filed against him at the New York U.S. District Court hearing on January 3. Following his denial of all charges, If SBF is eventually found guilty, he could face the full extent of the law, translating to a possible prison term of 115 years. His trial is set to begin on October 2.
After recording SBF’s not-guilty plea, the United States Attorney’s Office for the Southern District of New York (SDNY) swung into action, creating a special FTX task force in an attempt to trace stolen user funds and manage the investigations into the collapse of the exchange.
Hopes are high, that the former FTX CEO will not just be banned from the financial industry but also serve his time in prison. Still, the possibility that he might get away with his crimes has to be in view, as the justice system doesn’t always play to the masses.