The Sam Bankman-Fried (SBF) lawsuit has been a major spotlight for the crypto community as the ongoing trial has shown various dramatic turns of events that could affect its overall court ruling. A recent report has shown that Sam Bankman-fried had invested in XRP and is currently facing a loss of over $4 million worthy of XRP.
According to recent evidence about SBF’s activities, the crypto guru had invested in XRP and saw losses in the market that affected his plans. The funds were collected from his Alameda research, which also proved to be part of his activities in his allegations.
SBF and Ripple XRP investment
According to reports, $4 million worth of XRP was lost amid Sam Bankman-Fried’s plan to invest in Ripple’s native token, and the report states that the funds simply “vanished” Following recent developments in his case. The 31-year-old crypto guru used funds from his FTX sister company, Alameda Research. SBF used these funds in trading and encountered huge losses.
However, according to Bankman-Fried, he had assumed the funds originated from an exchange based in the United States to a South Korean one. In light of these developments, the crypto community, including the XRP investors, grew worried about where the funds had gone. Others had assumed Sam Bankman-Fried had stopped trading so as to figure out where the funds had gone. The report stated:
At length, Sam agreed. He stopped trading for two weeks. The other members of the management team confirmed that millions of dollars’ worth of Ripple was indeed missing.
Data report
SBF had recorded losing a total of 20 million XRP tokens at the time and now implicates him if finds mismanagement since it was initially transferred from the Alameda Research, according to the Wall Street Journal. Initially, according to the report, SBF borrowed $170 million from various investors in order to place the trades but eventually incurred losses in his endeavors.
In an effort to appease his staff, the FTX former CEO told his staff “falsely” that about 80% of the missing XRP was accounted for. A fellow manager at his company quoted what SBF told them, stating:
After the fact, if we don’t get any of Ripple back, no one will say it’s fair for us to say we own 80% of Ripple. Everyone will say we lied to them. Our investors will accuse us of fraud.
FTX insider
SBF’s side of the story
Coincidentally, he wasn’t aware of their whereabouts. In mitigation attempts to salvage the remaining funds, Bankman-Fried’s employees persuaded him to stop placing trades for two weeks. Following this, this was a consideration of the highly servier predicament SBF had placed the company in.
Adding to this, the missing XRP was also a last straw, according to the report filing. In essence, the tryst between the connection between the Alameda team and SBF was tarnished and suspended indefinitely. Investigations followed these events, and the funds were traced to Bithumb, a South Korean crypto exchange, initially from the Kraken exchange.
Also, in the spring of 2022, the exchange firm had reportedly placed a huge amount of trades daily, and the Alameda Research executives grew suspicious. They were alarmed by “how little Sam cared about where his money actually was.”
According to the report filing, the company was making a total of over 250,000 trades in a single day. The report stated, “Bithumb received the 20 million XRP coins without any hint from the sender on who they belonged to.”
If the court ruling goes against SBF, he will face charges on allegations of two counts of fraud, defrauding, and conspiracy to commit money laundering.
Source: https://www.cryptopolitan.com/sbf-lost-millions-worth-of-ripples-xrp/