FTX Founder SBF Hoped On Foreign Regulators’ Leniency To Stall Bankruptcy


The founder of disgraced crypto exchange FTX Sam Bankman-Fried (SBF), has once again come under serious criticism. According to U.S. Justice Department in a Wall Street Journal report, SBF attempted to stall bankruptcy proceedings through leniency from foreign regulators. The idea was to transfer crypto assets from his exchange platform to international regulators.

More Details On FTX Founder

Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, is facing multiple lawsuits and bankruptcy claims due to the financial crisis of FTX. But instead of addressing these claims head-on, the report cited that he has been actively seeking leniency from foreign regulators to buy time and avoid bankruptcy proceedings.

Meanwhile, the report also stated that SBF has been leveraging his extensive network of contacts within the cryptocurrency industry to influence regulators in various countries. These efforts aim to obtain favorable treatment and stall the bankruptcy proceedings.

FTX has denied these allegations, stating that the company is committed to following all applicable laws and regulations in every jurisdiction in which it operates. The company has also stressed that it has a strong track record of compliance and has never been found to have violated any laws or regulations.

Despite FTX’s denial, the accusations against SBF and the company continue to attract widespread attention and criticism. Some industry experts predict this could have significant consequences for the cryptocurrency industry, including increased regulation and inspection.

The accusations against SBF have caused outrage in the financial community. Many call for stricter regulations and increased accountability for cryptocurrency exchanges and their founders. Some have even called for SBF to be held accountable for his actions and for the FTX exchange to be closed down.

Need For Higher Security In The Crypto Space

Despite the success of the crypto space, it has been subject to criticism, particularly around the recent accusations of the FTX founder, SBF.

As the sector continues to grow, many call for more regulations on projects, exchanges, and their founders to hold the same standards as traditional financial institutions. Also, they should ensure that efforts to evade the law are not tolerated. 

FTX Founder SBF Hoped On Foreign Regulators’ Leniency To Stall Bankruptcy
Cryptocurrency market trends upward with new gains | Source: Crypto Total Market Cap on TradingView.com

Currently, there are many regulations around the world regarding crypto activities. But the FTX incident has raised more concerns over the security of the crypto space, with many arguing that more needs to be done to protect users from malicious actors. 

According to users on Twitter, the first is to increase the security measures in place for crypto exchanges and wallets to improve security. Also, a regulatory body should set and enforce standards to ensure that malicious actors cannot operate without consequences.

Moreover, the allegations against SBF and FTX have highlighted the need for greater transparency and accountability within the cryptocurrency industry. This involves regular auditing and testing systems, having strict Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to detect and prevent illicit activities.

Featured Image From Pixabay, 15958319 Charts From Tradingview

#FTX #Founder #SBF #Hoped #Foreign #Regulators #Leniency #Stall #Bankruptcy


Related Posts

South Korea to examine crypto staking services following the Kraken case

[ad_1] As reported by a local publication on Feb. 15, Korean financial authorities are looking into the staking services market. However, as the unnamed official specified to…

Elon Musk Hints At New Twitter CEO At End-2023, Causes FLOKI To Skyrocket 45%

[ad_1] Elon Musk announced in December of last year that he will step down as CEO of Twitter once a replacement is found, but will continue to…

Bitcoin eyeing ‘next big move’ which could see $19K retest — analyst

[ad_1] Bitcoin (BTC) is headed to either $28,000 or $19,000 and this week could decide all, fresh analysis says. In Twitter comments on Feb. 15, popular trader…

Messari Analyst Reveals Why Polygon Is Set For Steady Growth

[ad_1] Through his tweet today, Messari analyst Tom Dunleavy singled out Polygon as a top-performing crypto asset and further described traits that set the cryptocurrency for further…

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

[ad_1] Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

[ad_1] A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to…

Leave a Reply

Your email address will not be published. Required fields are marked *