FTX co-founder’s trial reveals potential Saudi funding and Binance’s legal troubles in Brazil By Investing.com
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In recent developments, FTX co-founder Sam Bankman-Fried’s ongoing trial has revealed that he considered selling FTX equity to Saudi Crown Prince Mohammed bin Salman, known for his investments in blockchain gaming. This information was disclosed by Caroline Ellison, former CEO of Alameda Research, during her cross-examination on Thursday. Bankman-Fried had previously voiced concerns about competition from Binance, capital generation, regulatory issues, and the purchase of Snap Inc (NYSE:). stocks. He had also aimed to secure more funding from BlockFi, which had previously loaned over $660 million to Alameda.
Bankman-Fried blamed Ellison for Alameda’s financial issues due to inadequate hedging. However, Ellison admitted that while better hedging could have improved Alameda’s financial situation, the company also had substantial open-term loans and heavily relied on their FTX credit line. She had prepared seven different balance sheets for Genesis pre-bankruptcy.
In other news, Binance and its CEO Changpeng “CZ” Zhao are facing legal challenges in Brazil following a 500-page report from a financial pyramids investigation. The report accuses Binance of unauthorized securities trading, tax evasion, and potential links to organized crime and terrorism. These accusations have disrupted Binance’s operations in the country, although the company vehemently denies these allegations.
On a separate note, JPMorgan’s Onyx Digital Assets introduced the blockchain-based Tokenized Collateral Network (TCN) in May 2022. Led by Tyrone Lobban, this application transforms money market fund shares into digital tokens and simplifies collateral processes. The debut public trade of TCN was a collaboration with BlackRock (NYSE:) for a derivatives deal with Barclays bank.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters
In recent developments, FTX co-founder Sam Bankman-Fried’s ongoing trial has revealed that he considered selling FTX equity to Saudi Crown Prince Mohammed bin Salman, known for his investments in blockchain gaming. This information was disclosed by Caroline Ellison, former CEO of Alameda Research, during her cross-examination on Thursday. Bankman-Fried had previously voiced concerns about competition from Binance, capital generation, regulatory issues, and the purchase of Snap Inc (NYSE:). stocks. He had also aimed to secure more funding from BlockFi, which had previously loaned over $660 million to Alameda.
Bankman-Fried blamed Ellison for Alameda’s financial issues due to inadequate hedging. However, Ellison admitted that while better hedging could have improved Alameda’s financial situation, the company also had substantial open-term loans and heavily relied on their FTX credit line. She had prepared seven different balance sheets for Genesis pre-bankruptcy.
In other news, Binance and its CEO Changpeng “CZ” Zhao are facing legal challenges in Brazil following a 500-page report from a financial pyramids investigation. The report accuses Binance of unauthorized securities trading, tax evasion, and potential links to organized crime and terrorism. These accusations have disrupted Binance’s operations in the country, although the company vehemently denies these allegations.
On a separate note, JPMorgan’s Onyx Digital Assets introduced the blockchain-based Tokenized Collateral Network (TCN) in May 2022. Led by Tyrone Lobban, this application transforms money market fund shares into digital tokens and simplifies collateral processes. The debut public trade of TCN was a collaboration with BlackRock (NYSE:) for a derivatives deal with Barclays bank.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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