Former FTX CEO denies knowledge of alleged money laundering scheme in court testimony
Former FTX CEO Sam "SBF" Bankman-Fried denied knowledge of why user funds were moved from a bank account with Alameda Research to a firm called North Dimension, which is allegedly used for money laundering. Bankman-Fried suggested that banks may have been more comfortable with North Dimension, avoiding well-known hedge funds connected to crypto like Alameda. He also testified to believing that taking FTX deposits through Alameda Research was legal, but did not recall discussions with auditors about FTX user funds going to the entity as well as Alameda. The criminal trial, which started on Oct. 3, will likely end within the next seven days following Bankman-Fried's testimony and closing arguments from both sides.
SEC may approve spot ETF before FTX sells GBTC, thereby eliminating negative premium concerns
FTX holds approximately $417 million in Grayscale Bitcoin Trust Fund (GBTC). Scott Jonhsson, the general partner of Van Buren Capital, stated that FTX's bankruptcy restructuring plan is unlikely to be approved before the second quarter of 2024. It is expected that the SEC will make a decision on spot Bitcoin ETF before then. If GBTC has been converted to an ETF by then, FTX's sale will not exacerbate GBTC's negative premium, as the creation and redemption process of ETFs should only track the underlying BTC price. Sean Farrell, the head of cryptocurrency strategy at Fundstrat, said that the SEC's approval of spot ETFs will help ensure that creditors are compensated and that the discount of GBTC relative to its net asset value will narrow further. Given positive catalysts, cryptocurrency prices are likely to soar overall.
SBF says FTX lawyers were involved in providing personal loans to executives
FTX founder Sam Bankman-Fried testified that FTX's legal department drafted futures contracts for loans from Alameda Research to him and other former executives of the exchange. He said that most of the loans were used for investment purposes.
SBF's lawyer Mark Cohen asked, "Are you comfortable with the arrangement of these loans by the lawyers?" SBF responded, "Of course."
SBF testifies that FTX stores clients’ cryptocurrencies in ‘integrated wallets’
FTX founder Sam Bankman-Fried stated in court that FTX customer assets are stored together in so-called "omnibus wallets", rather than in separate cryptocurrency wallets. He also mentioned that storing customer assets in omnibus accounts is an industry practice. He recounted an example of sending funds to his wallet on the cryptocurrency exchange Huobi and seeing the funds immediately transferred to the omnibus wallet.
FTX transferred nearly $6 million in LINK, MATIC, and AGLD to Coinbase
According to data released by Lookonchain, on Friday morning Beijing time, a wallet labeled FTX/Alameda deposited 253,862 LINK tokens (worth $2.67 million) and 1.59 million AGLD tokens (worth $1.34 million) into Coinbase, totaling approximately $4.01 million. In addition, data from blockchain analysis platform Arkham Intelligence shows that an FTX wallet transferred $4.8 million worth of MATIC tokens to an intermediate address, which then transferred $1.8 million worth of tokens to Coinbase. <br>
FTX white hat hackers withdrew 14.4 million TRX from multiple FTX-owned addresses
Scopescan monitoring shows that after FTX and Alameda Research started transferring funds to Binance yesterday, FTX white hat hackers extracted 14.4 million TRX (1.35 million US dollars) from multiple FTX-owned addresses.
FTX cold wallet address has transferred approximately 470,000 SOL on Solana
PeckShield has monitored that FTX's cold wallet address on Solana has transferred approximately 470,000 SOL (about $15 million). Some of the funds have been sent to CEX, such as Binance. FTX's cold wallet address on the Ethereum chain has transferred approximately $2.5 million worth of cryptocurrencies, including 11,000 COMP and about 97,400 RNDN to Wintermute's Binance deposit address.
FTX and Alameda addresses once again transferred US$1 million COMP and US$2 million RNDR
According to on-chain analyst Yu Jin's monitoring on October 26th, FTX and Alameda addresses transferred 21,967 COMP (approximately $1 million) and 974,270 RNDR (approximately $2 million) to Wintermute 5 hours ago. As of yesterday, a total of 6 assets worth $13.35 million have been transferred.
FTX is investigating $6.5 million payment to CAIS
According to court documents on Wednesday, FTX paid $6.5 million to the non-profit organization Center for AI Safety (CAIS) based in San Francisco from May to September 2022 before its collapse. FTX's current CEO, John J Ray III, is seeking an account of these transfers and is requesting a subpoena from a Delaware bankruptcy judge to require CAIS to provide documents and other information related to these payments.
FTX claims have risen to 50 to 53 cents per dollar
According to Bloomberg News on October 26th, Cherokee Acquisition, a bad asset investment company, is now offering FTX debt at a price of 50 to 53 cents per dollar, up from the range of over 40 cents last week. Since FTX went bankrupt and began recovering billions of dollars in assets, FTX debt claim prices have been relatively stable and rising, and major hedge funds have been buying and selling these claim rights, covering losses from FTX account equity to compensation for losses due to abandoned contracts.
![[Important Space Preview] Fed buys BTC? RWA is subverting the global capital game](https://img.cointime.com/images/ampVe0zoCZHmS2UV1UCNz7fkgtNHtgcM7fTUdj4T.jpg)
