Collapsed cryptocurrency exchange FTXMembers of close circle “Wirefraud” They set up a chat group called the company, which they used to send confidential information about operations on the way to the company’s catastrophic failure.
FTX’s Inner Circle Had A Secret Chat Group Called ‘Wirefraud’
On the eve of the first major hearing in the US Congress to investigate the collapse of FTX this week, the founders of FTX Sam Bankman-Fried and Zixiao “Gary” WangFTX engineer Nishad Singh and former CEO of Alameda Research Caroline Ellison with the hope that the information will remain confidential. SignalHe used a chat group in .
Although the SBF denied these allegations in a tweet, this was not found very convincing.
If this is true then I wasn’t a member of that inner circle
(I’m quite sure it’s just false; I have never heard of such a group)
— SBF (@SBF_FTX) December 12, 2022
Bankman-Fried would have testified before the Financial Services Committee of the US House of Representatives on Wednesday had he not been arrested in the Bahamas.
Some of the exchanges of messages between Bankman-Fried and his close circle are expected to come to the fore at the hearings, especially since his group was called “Wirefraud”.
FTX Australia executives KordaMentha said last month that $42 million is in bank accounts linked to local FTX operations, with “very significant” amounts still unpaid.
In this case, it is estimated that 1 million customers lost.
The parent FTX company is also thought to have transferred as much as $10 billion in client funds from its own exchange to Alameda Research.
The discovery that company leaders have a chat group called “Wirefraud” raises concerns about the potential for misconduct by Bankman-Fried and his colleagues.
The U.S. Securities and Exchange Commission and the Justice Department are investigating FTX. The Department of Justice prosecutes criminal violations such as fraud, while the SEC enforces civil laws to protect investors.
*Not investment advice.
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