Tag: AMC FTX Token (Page 1 of 2)

DOJ is Investigating Sam Bankman-Fried Connections: FTX Opposes

January 28, 2023 / Frank Nez

(Reuters) FTX has objected to a U.S. Department of Justice request for an independent investigation into the once-prominent crypto exchange’s collapse, saying it is already conducting a wide-ranging probe that includes family members of FTX founder Sam Bankman-Fried.

FTX said in a court filing in Wilmington, Delaware, late on Wednesday that the DOJ’s proposed review would only add cost and delay to its bankruptcy case.

FTX acknowledged “fraud, dishonesty, incompetence, misconduct, mismanagement, and irregularity” in its past conduct, but said that its previous wrongdoing is already being probed by the company’s new management, its creditors and law enforcement agencies.

As part of its own investigation, FTX asked U.S. Bankruptcy Judge John Dorsey, who is overseeing its Chapter 11 proceedings, to help it secure documents from Bankman-Fried, members of his family and other insiders with information about FTX transactions that used “misappropriated and stolen” funds.

These transactions, it said, include a $16.7 million Bahamian real estate purchase under the name of Bankman-Fried’s parents, Joseph Bankman and Barbara Fried.

FTX is also seeking information about political donations connected to Bankman-Fried, asking wide-ranging questions about Mind the Gap, a political action committee founded by Barbara Fried, and Guarding Against Pandemics, an advocacy organization founded by Sam Bankman-Fried and his brother, Gabriel Bankman-Fried.

FTX said Guarding Against Pandemics’ multimillion-dollar Washington, D.C., headquarters was purchased with misappropriated funds.

A spokesperson for Mind the Gap said it did not receive direct contributions from Sam Bankman-Fried, although Bankman-Fried made donations to some political causes it recommended to its donor network.

FTX Bankruptcy Update Today

DOJ probes Sam Bankman-Fried connections | Latest FTX bankruptcy update 2023.

FTX, once among the world’s top crypto exchanges, shook the sector in November by filing for bankruptcy, leaving an estimated 9 million customers and other investors facing total losses in the billions of dollars.

The U.S. Department of Justice’s bankruptcy watchdog has called for an independent investigation into its collapse, a request that received backing from a bipartisan group of U.S. senators.

FTX’s new CEO, John Ray, who worked with court-appointed examiners while leading Enron Corp and Residential Capital through bankruptcy, is prepared to testify that examiners in those two cases cost a combined $150 million and provided “minimal” benefits to creditors, FTX said.

FTX’s official committee of creditors joined the company in opposing the appointment of an examiner.

FTX also on Wednesday night filed a new list of creditors in bankruptcy court, which included financial watchdogs and government agencies from the United States, Japan and Switzerland, as well as companies including Airbnb Inc and crypto giant Binance.

Sam Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. He is scheduled to face trial in October.

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Sam Bankman-Fried on AMC Tokenized Shares Before Arrest

December 15, 2022 / Frank Nez

Market News: SBF address AMC tokenized shares before being taken into custody.

Sam Bankman-Fried addressed the AMC tokenized shares just moments before being placed under custody.

A Bahamian judge denied FTX founder Sam Bankman-Fried bail on Tuesday, hours after U.S. prosecutors accused the 30-year-old of misappropriating billions of dollars and violating campaign laws in what has been described as one of America’s biggest financial frauds, per Reuters.

SBF is currently at a Bahamas correctional facility until February 8th and faces up to 115 years in prison.

Although federal prosecutors charged him with eight criminal counts, including conspiracy and wire fraud, Bloomberg says it’s unlikely he serves a sentence that long of a term.

One of Sam Bankman-Fried’s last interviews was with Unusual Whales in a Twitter space call prior to his arrest.

Sam Bankman-Fried was asked about the AMC tokenized shares to which he was able to share some information with the retail community.

Curious what AMC Entertainment has had to say about the fiasco?

Let’s discuss it below.

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Sam Bankman-Fried on AMC Tokenized Shares

Market News: Sam Bankman-Fried responds to AMC tokenized shares.

Before Sam Bankman-Fried touched subject on AMC tokenized shares, The Chainsaw uncovered the harsh reality of the fraud that was taking place.

AMC’s FTX token was being used to manipulate its share price on its synthetic derivatives trading platform.

The publication thechainsaw.com and its report show that while FTX’s terms of service said the firm’s synthetic stocks were backed 1:1, that may not have been the case.

Additionally, thechainsaw.com published another report that details that Gamestop and Tesla shares could have been manipulated as well.

But the AMC community is getting the 1:1 ratio part mixed up.

Faceless accounts on Twitter have blown up information even they’re not certain of what it means.

The 1:1 ratio ties the AMC tokenized share to an actual security (real shares) legally binded by AMC Entertainment Holdings, inc.

However, upon doing some research, I found that FTX’s website was no longer linking to AMC’s tokenized terms of service and agreement, nor AMC Entertainment’s signing of agreement.

Unusual Whales asked Sam Bankman-Fried to confirm whether tokenized shares of AMC and GME were backed one to one.

SBF answers, “to my knowledge they were. But I want to get you a better answer to that question.”

Q: Because customer funds and deposits were not backed 1 to 1, can you confirm with us whether tokenized shares of $AMC, $GME and others were backed one to one?

SBF: To my knowledge they were. But I want to get you a better answer to that question.
— unusual_whales (@unusual_whales) December 12, 2022

AMC Entertainment CEO Adam Aron on AMC Tokenized Shares

AMC Entertainment CEO Adam Aron has not responded to queries regarding the AMC tokenized shares.

However, a shareholder from the retail community was able to obtain a response from AMC Entertainment via email.

Here is the response:

“AMC is aware of public reports regarding FTX’s bankruptcy. AMC has no affiliation, whatsoever, with FTX. AMC has never authorized any tokenized AMC shares nor benefited in any way from any tokenized AMC shares.”

AMC Tokenized AMC shares response from AMC Entertainment Holdings, Inc.

Email credit: @30Alexandre2019

Leave Your Thoughts Below

Sam Bankman-Fried was taken into custody after this interview with Unusual Whales on the Twitter space call.

We may never find out what his follow up to the topic on AMC tokenized shares is.

But the Vice President of Capital Markets and Investor Relations for AMC Entertainment has said the movie theatre chain was never involved.

AMC’s tokenized shares were never backed 1:1 between FTX and AMC Entertainment Holdings, inc. meaning it was all synthetic; a fraud.

I’d love to hear your thoughts on the matter.

AMC FTX Token Was Used to Manipulate Real Stock Prices

December 8, 2022 / Frank Nez

On Dec. 4, 2022, a report details that FTX-based synthetic stocks may have been used to manipulate the value of AMC shares.

In May 2021, FTX offered 36 tokenized stocks, but speculators believe it’s questionable whether or not the firm actually held the real stocks in the first place.

FTX has been under the microscope ever since the exchange collapsed during the first week of November 2022.

Since then, there’s been a lot of information to process, and new information released.

On Sunday, a report details that tokenized stocks listed on FTX may have been used to “manipulate the price of AMC shares.”

The publication thechainsaw.com and its report show that while FTX’s terms of service said the firm’s synthetic stocks were backed 1:1, that may not have been the case.

“FTX listed wrapped AMC token[s] for trading on its synthetic derivatives trading platform,” The Chainsaw said on Twitter.

Additionally, thechainsaw.com published another report that details that Gamestop and Tesla shares could have been manipulated as well.

Furthermore, the researchers note that the leaked FTX balance sheet disclosed by the Financial Times (FT) shows the company only holds Robinhood (HOOD) shares.

There’s no documentation (as of right now) that’s been made public that shows FTX actually owned any of the 36 tokenized stocks it listed.

Source(s): Bitcoin.com.

No Proof of AMC Ownership

Market News: AMC Token was used to manipulate stock price.

There are no signs of AMC Entertainment signing an agreement to the AMC FTX Token listed on the FTX crypto exchange.

When viewing the terms of service and terms of the tokenized stock product (AMC), users are prompted to error pages.

Now, there is no official FTX website as it has been changed to a ‘help concierge‘.

The sale of an AMC token was a scam.

But I’m curious to know your thoughts on this matter.

Ken Griffin Speaks Out on Retail and FTX Collapse

November 18, 2022 / Frank Nez

Billionaire investor Ken Griffin, the founder and CEO of multinational hedge fund Citadel, warned that the collapse of cryptocurrency exchange FTX could weaken confidence in financial markets at large and hurt the ability of younger investors to save for retirement.

Ken Griffin told Fox Business, “FTX is one of these absolute travesties in the history of financial markets.”

His remarks come less than a week after the implosion of FTX, which at its peak was the third-largest cryptocurrency exchange.

The firm’s bankruptcy may affect up to 1 million creditors and comes amid reports that at least $1 billion in client funds disappeared.

The Wall Street Journal is now reporting that ex-CEO Sam Bankman-Fried cashed out $300 million during a $420 million raise from several investors last year for personal use.

Sam Bankman-Fried is now facing a class-action lawsuit that was filed on November 11th, 2022.

Celebrities named in the lawsuit include Steph Curry, Shaquille O’Neal, Shohei Ohtani, Naomi Osaka, Larry David, and Kevin O’Leary who allegedly helped Bankman-Fried promote the exchange.

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Citadel’s Ken Griffin Says Retail Investors May Likely Ditch the Markets

Griffin expressed concern that losses sustained by younger investors who lost money due to FTX may make them less likely to invest their savings in capital markets, including traditional instruments like stocks and bonds.

“The confidence, though, of a generation in financial markets has also been shaken. That’s really awful because the 20-some-year-olds to 40-year-olds who are so engaged in crypto — they’ve got to save for their retirement, and if they don’t believe or trust in financial markets, this is a huge problem. They need to own stocks, they need to own corporate debt, they need to partake in our global capital markets,” Griffin said.

Citadel is currently partnering with Virtu, Schwab, Paradigm, Sequoia, and other Wall Street giants to form EDXM Crypto Exchange.

A cryptocurrency exchange that is supposed to provide transparency and lower transaction costs through the use of high liquidity and tight spreads.

But concerns are growing within the retail investor community as Citadel enters the crypto space, calling it an outrage due to the hedge funds’ long history of abuse of power.

“The bottom line is American investors have really gotten hurt here to the tune of hundreds of billions of dollars in decline in market cap in crypto over the last two years. I mean that really strikes at the entire core essence of what investor protection is all about,” Griffin said.

Source: Fox Business.