- Sam Bankman-Fried was arrested in the Bahamas.
- Credit investment firms want to purchase claims from FTX users.
- Caroline Ellison hired former top SEC crypto regulator
The founder and former cryptocurrency FTX CEO came up with an idea to develop a new venture to repay customers after the exchange filed for bankruptcy on November 11. The new management of FTX recently hired financial forensic investigators to track the missing users’ funds.
Sam Bankman-Fried stated, “I am going to be thinking about how we can help the world and if users haven’t gotten much back, I am going to be thinking about what I can do for them. I think at the very least I have a duty to FTX users to do right by them as best as I can.”
Leading credit investment firms are trying to purchase claims from FTX’s users. Apollo Global Management and Attestor are in the race to buy claims. Niche investment firm 507 Capital recently bought several claims from hedge funds.
Thomas Braziel, 507 Capital founder, stated, “everyone wants to look at the claims but no one knows what they are doing.” Braziel said he purchased FTX claims with a nominal value of $2 million, $3 million and $8 million.
Caroline Ellison Hired Former Top SEC Crypto Regulator
Alameda Research’s former CEO, Caroline Ellison, has hired Stephanie Avakian to represent her in the FTX bankruptcy investigation. Avakian is a former SEC regulator who led major cases against tech giants including Tesla, FaceBook, Theranos and Wells Fargo.
She was the director of the enforcement division when the financial watchdog filed lawsuits against Ripple Labs and Robinhood. Avakian and the international law firm WilmerHale will represent Ellison during the federal probe.
According to The Coin Republic, SBF’s hedge fund Alameda Research purchased FTT tokens at a very low price. The entity waited a long time for the price of FTT tokens to rise. When FTT prices shot up, Alameda started borrowing “real money” using these highly leveraged FTT tokens as collateral.
Earlier the US Attorney’s office spokesperson confirmed that former FTX CEO Sam Bankman-Fried was arrested in the Bahamas. United States prosecutor Damian Williams said, “at the request of the US government, based on a sealed indictment filed by the United States Attorney’s Office for the Southern District of New York.”
Source: https://www.thecoinrepublic.com/2022/12/13/the-former-ftx-ceo-wants-to-start-a-new-business/