On Nov. 11, 2022, FTX Trading Ltd. filed a voluntary petition for Chapter 11 bankruptcy protection in Delaware. The news followed a few days of speculation and evidence that had shown the digital currency exchange was likely insolvent. The company’s bankruptcy filing and information concerning Sam Bankman-Fried’s (SBF) quantitative cryptocurrency trading firm Alameda Research shed some more light on the situation. Moreover, crypto proponents have questioned why U.S. regulators let FTX fly under the radar.
Bankruptcy Filing Highlights FTX’s and Alameda’s Long List of ‘Portfolio Companies’
This past Friday, the general public and even FTX employees kept in the dark, were informed that FTX Trading Ltd. filed for Chapter 11 bankruptcy in the United States. The filing explains that it has more than 100,000 creditors and the firm’s estimated liabilities equate to $10 billion to $50 billion. The bankruptcy filing is signed by FTX’s new CEO John J. Ray III, an individual that worked on Enron’s bankruptcy proceedings.
The bankruptcy filing includes FTX Trading Ltd. and 134 affiliates of the debtor including Alameda Research, Atlantis Technology, Bitpesa, Blockfolio, Cedar Bay, DAAG Trading, Global Compass Dynamics, Hawaii Digital Assets, GG Trading Terminal, Ledger Holdings Inc., Liquid Financial, Western Concord Enterprises, FTX US Derivatives, FTX US Services, and FTX US Trading. The filing is authorized and signed by former FTX CEO Samuel Benjamin Bankman-Fried, otherwise known as SBF.
Alameda Called a ‘Financial Control Feedback Loop,’ Crypto Trading Reportedly Non-Existent
While the filing was registered on Nov. 11, SBF’s signature on the filing was dated Nov. 10, 2022. Out of the 134 affiliates, 11 share the Alameda name with Sam Bankman-Fried’s (SBF) quantitative cryptocurrency trading firm called Alameda Research. While Alameda claims to be a quantitative crypto trading company, it has been said that Alameda did nothing of the sort.
“Sam Bankman-Fried’s Alameda Research didn’t trade crypto so far as we can tell,” the investigative journalist and Twitter account @lordnefty wrote. “What did they do then? They ‘invested’ $8B across 448 venture-stage startups, most of which have ‘1-10’ employees and zero documentation. It only gets more crazy when you dig in to each and every one of the companies.” The journalist added:
A financial control feedback loop that ultimately ends with the all the money…
Click Here to Read the Full Original Article at Bitcoin News…
