{"id":523469,"date":"2022-12-08T18:31:13","date_gmt":"2022-12-08T15:31:13","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftxs-sam-bankman-fried-faces-probe-over-luna-cryptocurrency-crash\/"},"modified":"2022-12-08T18:31:13","modified_gmt":"2022-12-08T15:31:13","slug":"ftxs-sam-bankman-fried-faces-probe-over-luna-cryptocurrency-crash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftxs-sam-bankman-fried-faces-probe-over-luna-cryptocurrency-crash\/","title":{"rendered":"#FTX&#8217;s Sam Bankman-Fried faces probe over Luna cryptocurrency crash"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34d5c4103f2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34d5c4103f2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftxs-sam-bankman-fried-faces-probe-over-luna-cryptocurrency-crash\/#%E2%80%9CFTXs_Sam_Bankman-Fried_faces_probe_over_Luna_cryptocurrency_crash%E2%80%9D\" >&#8220;FTX&#8217;s Sam Bankman-Fried faces probe over Luna cryptocurrency crash&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CFTXs_Sam_Bankman-Fried_faces_probe_over_Luna_cryptocurrency_crash%E2%80%9D\"><\/span>&#8220;FTX&#8217;s Sam Bankman-Fried faces probe over Luna cryptocurrency crash&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>The feds are reportedly investigating whether beleaguered FTX founder Sam Bankman-Fried manipulated the market for two cryptocurrencies that crumbled earlier this year \u2013 eventually resulting in the downfall of his own company.<\/p>\n<p>Prosecutors are examining whether Bankman-Fried engaged in illicit trading activity to drive down the prices of TerraUSD and Luna \u2013 a pair of cryptocurrencies interlinked by algorithms that became essentially worthless in May, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2022\/12\/07\/business\/ftx-sbf-crypto-market-investigation.html\">New York Times<\/a> reported. The collapse of those digital currencies erased more than $50 billion in market value.<\/p>\n<p>Just before the crash, traders reportedly noticed \u201ca flood of sell orders\u201d for TerraUSD that \u201coverwhelmed the system\u201d and eventually caused the prices of both cryptocurrencies to plummet.<\/p>\n<p>Most of the sell orders for Terra USD originated from the cryptocurrency trading firm Alameda Research, a source with knowledge of the situation told the Times. Bankman-Fried owned both FTX and Alameda, which was led by his ex-lover, CEO Caroline Ellison.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/sam-bankman-fried-ftx-ceo-01.jpg?w=1024\" alt=\"Sam Bankman-Fried\" class=\"wp-image-24940245\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/sam-bankman-fried-ftx-ceo-01.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/sam-bankman-fried-ftx-ceo-01.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/sam-bankman-fried-ftx-ceo-01.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The feds are examining whether Sam Bankman-Fried and his allies tried to control the price of two doomed crypto assets.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>Alameda Research reportedly had active bets that the price of Luna would fall at the time of the alleged incident.<\/p>\n<p>Alameda faces scrutiny over the events that led to FTX\u2019s downfall. Reuters reported that Bankman-Fried secretly transferred $10 billion in FTX client funds to help prop up Alameda\u2019s risky bets before the cryptocurrency exchange fell into bankruptcy. Alameda has since ceased operation.<\/p>\n<p>The downfall of TerraUSD and Luna caused major volatility in the broader cryptocurrency sector and destabilized Alameda.<\/p>\n<p>Last month, Ellison purportedly told Alameda staffers that the firm had used FTX customer cash to cover a shortfall on loans that were \u201crecalled\u201d in the wake of the Luna and TerraUSD meltdown, according to the Times.<\/p>\n<p>The investigation is still in its early stages and it\u2019s unclear if the feds have already pinned any wrongdoing on Bankman-Fried, the report said.<\/p>\n<p>Representatives for the US attorney\u2019s office for Southern District of New York reportedly declined to comment. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/bankman-fried-018.jpg?w=1024\" alt=\"Caroline Ellison\" class=\"wp-image-24838617\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/bankman-fried-018.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/bankman-fried-018.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/bankman-fried-018.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Caroline Ellison was CEO of Alameda Research. <\/figcaption><figcaption><span class=\"credit\"><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> \/ @carolinecapital<\/span><\/figcaption><\/figure>\n<p>Bankman-Fried denied wrongdoing in a statement to the paper, claiming he was \u201cnot aware of any market manipulation and certainly never intended to engage in market manipulation.\u201d<\/p>\n<p>\u201cTo the best of my knowledge, all transactions were for investment or for hedging,\u201d Bankman-Fried added.<\/p>\n<p>Aside from the investigation into alleged market manipulation, the feds are also probing whether FTX violated money laundering regulations under the Bank Secrecy Act. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-21\/us-prosecutors-opened-probe-of-ftx-months-before-its-collapse\">Bloomberg first reported<\/a> on that investigation last month.<\/p>\n<p>Bankman-Fried, Ellison and their associates face mounting legal and Congressional scrutiny over their actions in the days prior to FTX\u2019s bankruptcy.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/ftx-crypto-currency-1.jpg?w=1024\" alt=\"FTX\" class=\"wp-image-24940243\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/ftx-crypto-currency-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/ftx-crypto-currency-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/ftx-crypto-currency-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>FTX declared bankruptcy last month.<\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Earlier this week, Senate Banking Committee Chairman Sherrod Brown (D-Ohio) called on Bankman-Fried to testify about FTX\u2019s collapse at a Dec. 14 hearing on Capitol Hill. Brown said the committee would issue a subpoena if Bankman-Fried did not voluntarily attend the hearing.<\/p>\n<p>The House Financial Services Committee has also asked Bankman-Fried to testify at a separate hearing next week.<\/p>\n<p>Bankman-Fried has hired Mark S. Cohen to represent him in the brewing legal battle. Cohen is best known for serving as defense attorney to convicted sex offender Ghislaine Maxwell \u2013 the longtime companion and enabler of convicted pedophile Jeffrey Epstein, who died in prison while awaiting trial for sex trafficking.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/12\/08\/ftxs-sam-bankman-fried-faces-market-manipulation-probe-over-luna-cryptocurrency-crash\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;FTX&#8217;s Sam Bankman-Fried faces probe over Luna cryptocurrency crash&#8221; The feds are reportedly investigating whether beleaguered FTX founder Sam Bankman-Fried manipulated the market for two cryptocurrencies that crumbled earlier this year \u2013 eventually resulting in the downfall of his own company. Prosecutors are examining whether Bankman-Fried engaged in illicit trading activity to drive down the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":523470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/sam-bankman-fried-ftx-02-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[135234,89897,136931,4978,76127,27868],"class_list":["post-523469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ftx","tag-sam-bankman-fried","tag-12-8-22","tag-bankruptcy","tag-cryptocurrency","tag-legal"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=523469"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/523470"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=523469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=523469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=523469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}