Recently, federal regulators disclosed how SBF swindled 8 billion USD in customer money. Regulators said that just a month after FTX.com was founded, SBF leveraged customer assets to a small circle of insiders, specifically customer personal crypto deposits for Alameda bets. After the FTX collapsed and filed for bankruptcy, SBF became a villain in the crypto industry. He was exposed to years-long fraud that started with the launch of FTX in 2019.
SBF apologised for everything
Before SBF was surprisingly arrested on Monday night by the Bahamas police, he apologised for everything he could think of to everywhere who would listen. In a leaked draft of his aborted House testimony, he wrote that he was truly sad for his entire adult life and he f*cked up everything.
He also told the regulators of the Bahamas that he was deeply sorry for ending up in such a position. But, when SBF was escorted from this penthouse apartment in handcuffs in Nassau, it was still unclear what he was apologising for, having stridently denied committing fraud to different channel reporters.
Federal regulators and prosecutors revealed SBF’s plan
According to a filing from US SEC, a few days after the Bahamas police arrested SBF, federal regulators disclosed how SBF swindled 8 billion USD in customer money. They unsealed dozens of pages of filing and charges that accessed SBF of not just having perpetrated fraud but having done so from the start when he launched his company.
US Attorney Mr Williams said that far from having f*cked up, US SEC regulators, with federal prosecutors from the US Attorney’s office for the Southern District of New York, alleged that SBF was at heart – indeed, the driver of the biggest financial scams in the history of US. All the allegations against SBF were assembled quickly but offered insight into one of the highest-profile fraud prosecutions since Enron.
Alameda Research, a loss-making crypto hedge fund, was founded Bankman-Fried in Nov 2017. To start the venture, he rented office space in California. The scion of the two Stanford law professors, SBF completed his studies at MIT, worked at the prestigious quantitative trading firm popularly known as Jane Street capital and entered the crypto industry with his MIT classmate, Garg Warg. It was initially an arbitrage shop, purchasing bitcoin from one exchange at a lower price and selling it to another exchange at a higher price, thus booking a profit.
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