Connect with us

Entire crypto world is based on massive lies

FTX, Sam Bankman-Fried, African, Bankman-Fried, OneCoin, United States

Economy

Entire crypto world is based on massive lies

Following the collapse of FTX and arrest of its kingpin Sam Bankman-Fried, it has become crystal clear that groups of frauds are running crypto scams just through many websites. According to experts, it is time for every government in the world to immediately impose ban on operations of crypto companies and at the same time initiate investigations in their activities. Such actions should also come against Bitcoin, Binance and others.

While the entire world is in awe knowing about how Sam Bankman-Fried has swindled hundreds and thousands of people through his fraudulent FTX, a large number of crypto scam ventures are operating from the US while many of these fraud gangs have established footprints in a number of African nations as well as Bahrain, Saudi Arabia, Dubai and other Middle Eastern countries. Crypto scammers are also active in India.


Also read Web of fraudulent ventures of YEM coin kingpin Daniel Settgast


Meanwhile, following collapse of FTX and arrest of Sam Bankman-Fried in Bahamas, the US government is now saying it was fraud from the jump. The complaint made public by the Commodity Futures Trading Commission has some hair-raising details stating Sam Bankman-Fried has not been telling the truth for months. According to the complaint, Bankman-Fried operated Alameda Research and FTX as a common enterprise.

In a press conference, US attorney Damian Williams characterized Alameda Research and FTX as one of the biggest financial frauds in American history. Although the United States has witnessed similar frauds in the past, for example with OneCoin.

Sam Bankman-Fried said that he did not know exactly what was going on at Alameda Research and that he was not running Alameda. According to the CFTC complaint, that is not even a little true. It says that Sam Bankman-Fried was a signatory on Alameda’s bank accounts, and was an authorized trader for Alameda’s accounts with CFTC futures commissions merchants. He also had direct authority over all of Alameda’s major trading, investment, and financial decisions.


Also read OnPassive, a massive digital scam racket


It is further stated that from May 2019 through November 11, 2022, FTX customer deposits, including both fiat currency and cryptocurrencies such as Bitcoin and Ethereum were regularly held by and or appropriated by Alameda for its own use. Only a small circle insider knew that Alameda traders could tap on essential unlimited line of credit on FTX, and there were special exceptions to FTX’s usual processes that gave Alameda faster execution times than everyone else.

Meanwhile, according to CNBC, days before FTX’s bankruptcy filling in November 2022, co-CEO Ryan Salame told Bahamian authorities that founder Sam Bankman-Fried may have committed fraud by sending customer money from the crypto exchange to his other firm, Alameda Research.

According to a filing tied to FTX’s bankruptcy proceedings, Salame disclosed “possible mishandling of clients’ assets” by Bankman-Fried. The letter included in the filing was dated November 9, and was sent from the Securities Commission of the Bahamas to the commissioner of police. FTX declared bankruptcy on November 11.


Also read Liberland president Vit Jedlička, the mafia of crypto scam


Salame told regulators that only three individuals at FTX — Bankman-Fried, Nishad Singh and Gary Wang — had the kind of access and authority to engineer the possibly fraudulent transfers to Alameda, a hedge fund and trading firm. Salame said he advised Bankman-Fried and Alameda executives that the possible mishandling of customer funds, which were commingled with Alameda, was contrary to “normal corporate governance”.

Sam Bankman-Fried, a pathological liar

Democratic Party’s congressman Ritchie Torres told media that FTX kingpin Sam Bankman-Fried is a pathological liar. Torres, a member of the House Financial Services Committee, added that “there’s evidence to suggest this much”.

Ritchie Torres, who represents New York’s 15th district, attended House Financial Services Committee hearing on the collapse of crypto exchange FTX. Bankman-Fried was expected to testify before the committee until his arrest.


Also read Dan Settgast, Greenzero Foundation and classic pattern of massive fraud


Torres said the details of FTX’s failure he heard during the hearing were “shocking”, confirming his belief Bankman-Fried “perpetrated a Ponzi scheme”, mishandling millions of dollars worth of customer funds.

Torres said that Bankman-Fried’s statements in a string of tweets led the public to believe FTX had enough assets to cover its liabilities. According to Torres, the public to believed “there was no problem” and that everything was fine. “He misled the public. He lied”, he said.

Sohail Choudhury is the Executive Editor of Blitz

Click to comment

Leave a Comment

More in Economy

To Top
%d bloggers like this: