FTX CEO Accused of Fleeing To Argentina After Alleged $895 Million ‘Hack’

Must Read

Billionaire and founder of cryptocurrency exchange FTX Sam Bankman-Fried (SBF) recently resigned as CEO of his company on 11 November. The next day, FTX announced that it was hacked.

On the same day SBF left his post at his company, FTX filed for Chapter 11 bankruptcy protection in the US. This news made crypto watchers alert and monitored SBF’s moves. The next day, when FTX representatives reported that they were hacked and unauthorised transactions worth $895 million went missing, rumours swirled that SBF’s private jet was en route to Argentina.

Reuters reached out to SBF to confirm the rumour, to which the ex-CEO replied ‘nope’. He further adds he is still in his home in the Bahamas. CNBC noted in its report that Argentina and the US have an extradition treaty, and SBF flying to Argentina to avoid authorities is not a good idea.

As the company wound down, two senior members of FTX blew the whistle on the alleged hacking of the crypto company. According to these FTX employees, SBF orchestrated a mysterious outflow of at least $2.2 billion of investor money from FTX into its sister company, Alameda.

They claim that SBF had secretly transferred billions to Alameda to fund risky trades. The whistleblowers claimed they saw evidence that the money was missing when SBF shared the financial records of FTX with its executives the previous week. SBF countered the accusation in a text response to Reuters. 

“We didn’t secretly transfer; we had confusing internal labelling and misread it,” he stated.

FTX’s downfall came swiftly when it suddenly collapsed, coming from a value of $32 billion early this year. Billionaire Mark Cuban said that SBF didn’t run FTX properly.

“So, what does Sam Bankman do? He, give me more, give me more, give me more, so I’m going to borrow money, loan it to my affiliated company, and hope and pretend to myself that the FTT tokens that are in there on my balance sheet are going to sustain their value,” the billionaire adds.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img