TheDinarian
News • Business • Investing & Finance
⚠️Sam Bankman-Fried takes aim at FTX CEO John Ray in new interview⚠️
December 05, 2022
post photo preview
  • Sam Bankman-Fried is taking aim at John Ray, the new CEO of FTX, claiming he’s been iced out after the firm filed for bankruptcy protection. 
  • Bankman-Fried, the former CEO of FTX, made the comments during a wide-ranging interview on The Block’s “The Scoop” podcast.

Sam Bankman-Fried is picking a fight with the new CEO of FTX, the crypto exchange he co-founded.

The exiled former exchange boss claims FTX CEO John J. Ray III has been icing him out since he took the helm at the beleaguered crypto company in November. Ray was appointed as the new head of the embattled FTX after it filed for Chapter 11 bankruptcy protection.

“John Ray and his team do not communicate with me. They have not responded and he has not responded to a single message I've sent him,” Bankman-Fried said. “His team does not in general work with me or, you know, care about what I have to say.”

The former FTX CEO spoke on “The Scoop,” The Block’s podcast hosted by Frank Chaparro, who conducted the nearly two-hour interview. The wide-ranging interview covered Bankman-Fried’s involvement with his Alameda Research trading firm, his dealing with policymakers and whether FTX might have quietly funneled money to Alameda.

In response to a question about Ray and his team, he suggested Ray may be making false statements.

“There have been a lot of statements that have been made that have been put on legal record that I knew to be false,” Bankman-Fried said. “I don't know if they were intentionally lying or if it was just an honest mistake because of people not consulting with anyone who knew where any of these records were. But there have been cases where, you know, it's been said X, Y or Z did not exist. And I am staring at a copy of X, Y, Z, and none of my emails have been returned.”

Ray, who oversaw Enron’s bankruptcy, lambasted FTX in court filings, saying the firm was in the hands of “inexperienced, unsophisticated and potentially compromised individuals.” The company’s financial situation is the worst Ray has seen in his career, he noted.

Bankman-Fried stepped down from FTX when the company filed for bankruptcy protection in Delaware last month. The former CEO’s crypto empire was once valued at $32 billion, and now Bankman-Fried says he has roughly $100,000 left in his bank account.

The former FTX CEO has been on a media marathon in the weeks since his company collapsed, talking with the press, posting to social media and joining audio chatrooms to tell his side of the story.

FTX not a Ponzi, Bankman-Fried says

Bankman-Fried pushed back on claims by Ray that FTX lacked financial controls. Ray said in bankruptcy filings that FTX didn’t know how much money it owed customers or even how many employees worked at the firm. He also noted FTX had a special exemption for Alameda on its platform, and lacked proper corporate governance like a functioning board of directors.

“I would dispute the claim that there is zero financial controls. I completely agree that there were places in which there were very poor controls and that those places were critical and that that was really bad in terms of zero financial controls,” Bankman-Fried said. “I think it's pretty hard if you try and take over a company and refuse to talk with anyone who was involved in running that company to, in a short period of time, know where any of the relevant data would be or where any of the relevant policies or procedures would be, or, you know, what books or records there were.”

Ray has said he isn’t speaking with Bankman-Fried. The new FTX chief executive recently told employees that Bankman-Fried and his inner circle are not involved in the company.

Bankman-Fried did concede that he had “embarrassingly little knowledge” about the financial status of FTX before its implosion last month. But he disputed comparisons to the infamous Ponzi scheme operator Bernie Madoff, saying FTX was a “real business” before it fell apart.

“I had embarrassingly little knowledge about what was going on. There are a lot of things that I had to look up when things started going south, you know, at the beginning of November, that I don't think I should have had to look up,” Bankman-Fried said. “There are a lot of failures of oversight on many dimensions there. But I do think, like, FTX was a real, is a real business that was making real profit.”

Alameda’s relationship with FTX

At the heart of the FTX collapse is the firm’s relationship with Alameda Research. The company’s downfall began when Binance, a rival exchange, announced it would sell much of its FTT, which is FTX’s native utility token. Former Alameda Research CEO Caroline Ellison offered to buy the tokens from Binance at $22, but it was too late. The blunder sent the token price plummeting, and FTX filed for bankruptcy protection within a week. 

Bankman-Fried has dodged questions about how closely involved he was with Alameda’s decision-making. He stepped down as CEO of the company in 2021, but says he had been distancing himself even earlier over concerns about a conflict of interest.

Bankman-Fried didn’t say whether a top employee could have built a system that would allow Alameda to borrow money from FTX. He and his inner circle reportedly had a “backdoor” in FTX’s system that allowed him to alter financial records without alerting outside auditors, although Bankman-Fried said he wasn’t sure “what people are referring to when they talk about the backdoor.”

“Anything's possible,” Bankman-Fried said. “I was under the impression that Alameda was over-collateralized at the very least on FTX. … I don't think that there was, like, intentionality to have a, you know, an infinitely big position there or anything.”

Bankman-Fried didn’t clearly answer a question about whether FTX loaned funds to Alameda from customers who had spot positions on the platform. He said he did not know the “technological details of the system” and was unsure if his answer was correct.

“That sort of transfer has resulted over time from a significant amount of dollars being sent from customers straight to Alameda Research, never hitting FTX in the first place,” Bankman-Fried said.

“I don't believe that that was coming from Alameda's primary account,” Bankman-Fried added. “I believe it was coming from a stub account that was specifically meant to be a ledger for wire transfers that customers had sent.”

Policymakers had questions about Alameda

Policymakers in Washington did ask Bankman-Fried about the relationship between FTX and Alameda, the former CEO said. The questions did not, however, pertain to credit as far as Bankman-Fried can remember. 

“So there were lots of inquiries about the relationship between FTX and Alameda,” Bankman-Fried said. “[What] I do remember being asked about was trading patterns. Like, what I do remember being asked about was from the perspective of market manipulation, from the perspective of order book liquidity, from the perspective of revenue.”

Lawmakers and regulators are taking a closer look at FTX and Bankman-Fried in the wake of the firm’s implosion. Bankman-Fried had lobbied for a digital commodities bill in Congress and had filed an application with the Commodity Futures Trading Commission for FTX to offer direct trading.

Several House and Senate committees have arranged hearings into the company, and the Securities and Exchange Commission and CFTC are launching their own inquiries.

Link

community logo
Join the TheDinarian Community
To read more articles like this, sign up and join my community today
0
What else you may like…
Videos
Podcasts
Posts
Articles
Built On Stellar XLM 💎 😉

Blockchain adoption demands both privacy and transparency. Stellar is built for both.

@tomerweller, SDF's Chief Product Officer, shares the path to privacy on Stellar:

Dont underestimate Stellar..
This is financial advice. 💎

00:01:01
⚠️ The entire cross-chain bridge & CEX model is built on a flawed premise ⚠️

The entire cross-chain bridge & CEX model is built on a flawed premise: custodial trust. This is a bug, not a feature.
​What if you could execute a native BTC <> native SOL (or ETH, USDC, USDT, XRP, RWAs, tokenized assers, etc.) swap with zero counterparty risk? No bridge, no CEX, no wrapped assets, not even a DEX!

​This video breaks down the P2P atomic swap architecture that makes it possible. (Thread 👇)

https://x.com/ReggieMiddleton/status/1973467803656032281

00:02:12
In the first SEC-CFTC Joint Roundtable in 14 years, Pyth is mentioned.

✓ The US Dept of Commerce worked with Pyth to bring data onchain

✓ Institutions are using Pyth data in live trading models

Dave Olsen, from Jump Trading Group at the SEC-CFTC Joint Roundtable ⬇️

00:00:37
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

🚨BREAKING: CRYPTOCOM GETS CFTC LICENSE

Crypto ․com is now the first major crypto platform to secure a U.S. CFTC derivatives license.

Ledger now supports @hedera tokens!

This means you can now manage your favorite HTS tokens, such as @SaucerSwapLabs, @gib_plz, @HashPackApp, @KabilaApp, @dovuofficial, and more, easily and securely through Ledger Live.

Head over to Ledger Live now to check it out!

https://x.com/Ledger/status/1973355804469371017

Saving and sending money across Africa shouldn't be expensive or slow. 🌍

Our USD-backed stablecoin, $RLUSD, is changing that: on.ripple.com/4nwqIic

Through partnerships with @chippercashapp, @VALRdotcom, and @yellowcard_app, we're reducing costs, boosting speed, and delivering reliable access for individuals and businesses across the continent.

Learn how stablecoins are transforming financial services across Africa and beyond.

https://ripple.com/insights/rlusd-in-africa-a-new-chapter-for-stablecoins-and-financial-inclusion/

post photo preview
The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

This is the cycle of the great onboarding. The distinction between "Web2" and "Web3" is rapidly becoming obsolete. When government data, institutional flows, and grassroots builders all operate on the same decentralized rails, we are simply talking about the internet—a new iteration, yes, but the internet nonetheless: an immutable internet where data is not only published but also verified and distributed in real-time.

Pyth Network stands as tangible proof that this technology serves a vital purpose. It demonstrates that the industry has moved beyond abstract "crypto tech" to offering solutions that address real-world needs and are now actively sought after and understood by traditional entities. Most importantly, it proves that Web3 is no longer seeking permission; it has received the highest validation a system can receive—the trust of governments and markets alike.

This is not merely a fleeting trend; it's a crowning moment in global adoption. The U.S. government has just validated what many in the Web3 space have been building towards for years: that Web3 is not a sideshow, but a foundational layer for the future. The current cycle will be remembered as the moment the world definitively crossed this threshold, marking the last great opportunity to truly say, "we were early."

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto Donations👇
XRP: r9pid4yrQgs6XSFWhMZ8NkxW3gkydWNyQX
XLM: GDMJF2OCHN3NNNX4T4F6POPBTXK23GTNSNQWUMIVKESTHMQM7XDYAIZT
XDC: xdcc2C02203C4f91375889d7AfADB09E207Edf809A6

Read full Article
post photo preview
US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto
XRP: r9pid4yrQgs6XSFWhMZ8NkxW3gkydWNyQX
XLM: GDMJF2OCHN3NNNX4T4F6POPBTXK23GTNSNQWUMIVKESTHMQM7XDYAIZT
XDC: xdcc2C02203C4f91375889d7AfADB09E207Edf809A6

Read full Article
post photo preview
List Of Cardano Wallets

Well-known and actively maintained wallets supporting the Cardano Blockchain are EternlTyphonVesprYoroiLaceADAliteNuFiDaedalusGeroLodeWalletCoin WalletADAWalletAtomicGem WalletTrust and Exodus.

Note that in case of issues, usually only queries relating to official wallets can be answered in Cardano groups across telegram/forum. You may need to consult with specific wallet support teams for third party wallets.

Tips

  • Its is important to ensure that you're in sole control of your wallet keys, and that the keys used can be restored via alternate wallet providers if a particular one is non-functional. Hence, put extra attention to Non-Custodial and Compatibility fields.
  • The score column below is strictly a count of checks against each feature listed, the impact of specific feature (and thus, score) is up to reader's descretion.
  • The table represents current state on mainnet network, any future roadmap activities are out-of-scope.
  • Info on individual fields can be found towards the end of the page.
  • Any field that shows partial support (eg: open-source field) does not score the point for that field.

Brief info on fields above

  • Non-Custodial: are wallets where payment as well as stake keys are not shared/reused by wallet provider, and funds can be transparently verified on explorer
  • Compatibility: If the wallet mnemonics/keys can easily (for non-technical user) be used outside of specific wallet provider in major other wallets
  • Stake Control: Freedom to elect stake pool for user to delegate to (in user-friendly way)
  • Transparent Support: Easy approachability of a public interactive - eg: discord/telegram - group (with non-anonymous users) who can help out with support. Twitter/Email supports do not count for a check
  • Voting: Ability to participate in Catalyst voting process
  • Hardware Wallet: Integration with atleast Ledger Nano device
  • Native Assets: Ability to view native assets that belong to wallet
  • dApp Integration: Ability to interact with dApps
  • Stability: represents whether there have been large number of users reporting missing tokens/balance due to wallet backend being out of sync
  • Testnets Support: Ability to easily (for end-user) open wallets in atleast one of the cardano testnet networks
  • Custom Backend Support: Ability to elect a custom backend URL for selecting alternate way to submit transactions transactions created on client machines
  • Single/Multi Address Mode: Ability to use/import Single as well as Multiple Address modes for a wallet
  • Mobile App: Availability on atleast one of the popular mobile platforms
  • Desktop (app,extension,web): Ways to open wallet app on desktop PCs
  • Open Source: Whether the complete wallet (all components) are open source and can be run independently.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto
XRP: r9pid4yrQgs6XSFWhMZ8NkxW3gkydWNyQX
XLM: GDMJF2OCHN3NNNX4T4F6POPBTXK23GTNSNQWUMIVKESTHMQM7XDYAIZT
XDC: xdcc2C02203C4f91375889d7AfADB09E207Edf809A6

 

Read full Article
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals