FTX Lawyers Tried To Stop SBF Behind Scenes: Internal Document

FTX Sam Bankman-Fried News: The saga around collapse of FTX did not happen overnight but was spread out for close to a week. Much was talked about the liquidity crisis Alameda Research and FTX faced but it is only now that the behind the scenes information is gradually coming out. Meanwhile, the negative effects from Sam Bankman-Fried’s crypto empire meltdown still continue to emerge. Earlier, crypto lender BlockFi announced the filing of chapter 11 bankruptcy.

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FTX Lawyers Attempt To Control SBF

After news on FTX liquidity crisis came out, the focus was much around whether any investors would come forward to save the company. Although Binance attempted to go for a takeover, it all did not materialize eventually. In the meanwhile, FTX lawyers reportedly tied to take company control away from SBF to pave way for immediate bankruptcy. As per a New York Times report, Sam Bankman-Fried ignored warnings to prepare for bankruptcy in hope of raising funds. An internal email from an FTX lawyer read,

“The exchanges must be halted immediately. The founding team is not currently in a cooperative posture.”

The report said that the lawyers attempts to take control away from SBF went in vain. Although the FTX founder had eventually stepped down from the role of chief executive officer, it was perhaps already too late. In a crypto crash that ensued later, retail investors lost billions of dollars in investments.

Back To Normalcy?

Meanwhile, the crypto exchange said it resumed payment of salaries and benefits to employees worldwide. FTX group is resuming ordinary course cash payments of salaries and benefits to employees around the world, CEO John Ray said on Monday.

Also Read: On-chain Data: Bitcoin Miner Capitulation Begins, More Pain Ahead for BTC?

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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