On September 13, Sam Bankman-Fried’s lawyers submitted a 102-page brief to the United States Court of Appeals for the Second Circuit, claiming that the former FTX CEO was “never presumed innocent” and was subject to scrutiny that allegedly influenced prosecutors, the presiding judge, and the media. 
According to the appeal, SBF’s lawyers argue that the jury “was only allowed to see half of the situation regarding FTX user funds” and allege that prosecutors “made false claims” by stating that the funds were permanently lost, and that Bankman-Fried deliberately caused this loss. They further assert that FTX debtors’ attorneys collaborated with the U.S. government in a manner beyond “cooperation,” supposedly acting as an “extension of the prosecution” by providing information.

The appeal reads: “From day one, the mainstream narrative has been that Bankman-Fried stole billions of dollars in customer funds, leading to FTX’s collapse and resulting in billions of dollars in losses. This narrative was originally fabricated by the lawyers who took over FTX and was later adopted by contacts within the U.S. Attorney’s Office.” It goes on to claim that “Now, nearly two years later, a different picture has emerged—confirming that FTX was never insolvent and actually had billions of dollars in assets to repay customers. But the jury in the Bankman-Fried case never saw this picture.”
Sam Bankman-Fried’s Conviction for Fraud
In November 2022, FTX declared bankruptcy due to a liquidity crisis, causing widespread market disruption and significant losses for investors. SBF and his company Alameda Research were accused of misusing customer funds for high-risk trading and failing to fulfill proper financial management responsibilities. 
SBF faced charges including wire fraud, securities fraud, and money laundering. Prosecutors argued that SBF deceived investors and customers by hiding FTX’s true financial state and illegally used customer deposits for risky investments and personal expenses. Despite his defense lawyers arguing that he did not intentionally deceive anyone, the court found him guilty.
FTX’s Overcompensation Plan
On May 8, FTX and its affiliated debtors filed a reorganization plan and disclosure statement with the U.S. Bankruptcy Court for the District of Delaware. The plan outlined a distribution strategy for global customers and other creditors, focusing on redistributing nearly all assets held by FTX at the time of its November 2022 bankruptcy. FTX expects to recover between $14.5 billion and $16.3 billion in assets for distribution. The plan projects that 98% of FTX creditors will receive at least 118% of their recognized claims within 60 days of the plan’s implementation, with the remainder of creditors receiving 100% compensation for their recognized claims, including reimbursement for the time value of their investments.

#FTT🔥🔥 #sbf #FTXAuction

The FTX Group announced on Monday, March 6th, that it is suing Michael Sonnenshein, the CEO of Grayscale Investments, as well as Barry Silbert and his Digital Currency Group. The release states that FTX's Alameda Research is attempting to recover at least $9 billion that Grayscale has locked up.

Grayscale has violated the Trust agreements by collecting over $1.3 billion in extortionate management fees alone in the last two years.

For years, Grayscale has sheltered behind fabricated justifications to thwart shareholders' attempts to redeem their shares.

The Trusts' shares are currently selling at about a 50% discount to Net Asset Value as a result of Grayscale's activities.

The FTX Debtors' shares would be worth at least $550 million, or almost 90% more than their present value, if Grayscale cut its costs and stopped unjustly impeding redemptions.

FTX debtors are asserting that Grayscale is in violation of Trust Agreements and Fiduciary Responsibility. Also, they want the outrageous fees that, according to a press release, have already made Grayscale $1.3 billion over the last two years reduced. Moreover, John J. Ray's team asserts that the Grayscale Bitcoin Trust's substantial trading disadvantage is the result of the DCG Subsidiary's actions.

Grayscale has allegedly been hiding for years behind fabricated justifications to stop stockholders from redeeming their shares, according to the complaint. Read from the announcement, the current CEO of FTX, John J. Ray III, said that his team;

"continues to use every tool we can to maximize recoveries for FTX customers and creditors, goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban."

He said that the decision will benefit Grayscale's investors as well as FTX's debtors.

#ftxcollapse #sbf #alamedaresearch #crypto2023 #scams