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The Thriving Landscape of Crypto and NFT Gaming The crypto and NFT gaming space is experiencing a remarkable surge, with an unprecedented number of developments capturing the attention of enthusiasts and investors alike. As prominent games release and token airdrops abound, the landscape is bustling with activity. For those seeking a concise update on the latest happenings in the realm of crypto video games, the debut of Decrypt's GG: This Week in Crypto Games proves to be an invaluable resource. Key Highlights from the Week Cheaters Face Consequences A harsh lesson was learned by Call of Duty players who downloaded illicit cheat software, only to find their devices infected with malware. Cybersecurity firm VX Underground reports that nearly 5 million gaming accounts may have been compromised, with some players losing access to their Bitcoin wallets. This incident serves as a stark reminder: cheating does not pay. Notcoin Winds Down Mining Phase The viral Telegra...

FTX Missing Funds: Former General Counsel Reveals Shocking Testimony on Legal Justifications

FTX former general counsel Can Sun testified on Thursday that Sam Bankman Fried asked him to craft legal justifications to explain why billions of dollars of customer funds were missing as the exchange struggled to process customer withdrawals last November. As FTX melted down, Bankman Fried thought the exchange could raise money from investment fund Apollo to stay afloat and satisfy customers rushing for the exit. The catch: Apollo wanted to know how a $7 billion shortfall could exist at the once popular exchange. Sun stated that there were no legal justifications that were supported by the facts, which he had conveyed to Bankman Fried during a conversation at The Albany, FTX's headquarters in the Bahamas.

The Need for Justifications

During their conversation at The Albany, Sun highlighted that it wouldn't be viable to claim that billions of funds were taken from dormant customer accounts, as the exchange's terms of service explicitly stated that customer assets were off-limits. Sun, who joined the firm in August 2021 and was supervised by Bankman Fried and Dan Friedberg, FTX's former chief compliance officer, also pointed out that the only exception to this rule, at least in writing, was for customers who enrolled in spot margin trading on the exchange. In that scenario, collateral posted by customers to take positions could be used by FTX. However, Sun stressed that the facts did not support a multi-billion dollar hole in Bankman Fried's exchange.

Bankman Fried's Response

Throughout the conversation, Sun noted that Bankman Fried did not seem surprised by this information and his responses were muted. In contrast to Bankman Fried's calm demeanor as he typed on a laptop and took calls, other employees present at the time appeared more visibly affected by the situation. This observation raises questions about Bankman Fried's knowledge and involvement in the missing funds issue.

It is crucial to note that earlier this year, FTX sued Dan Friedberg, alleging that he aided in fraud as Bankman Fried's "fixer." This legal action indicates that FTX's new management holds Friedberg accountable for his role in the exchange's troubled past.

Implications of Sun's Testimony

Can Sun's testimony provides valuable insight into the events surrounding the missing customer funds at FTX. His revelation that Bankman Fried asked him to craft legal justifications suggests a potentially troubling intent to mislead investors and stakeholders about the state of the exchange's finances. Moreover, Bankman Fried's seemingly nonchalant response during the conversation at The Albany raises further questions about his knowledge and involvement in the matter.

The court proceedings will continue to shed light on the actions and responsibilities of key individuals within FTX. As the legal case unfolds, it is essential to closely examine the evidence and testimonies presented to determine the extent of any wrongdoing and to hold those responsible accountable for their actions.

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