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Disgraced FTX Founder Sought Leniency from Foreign Regulators

Tue, 01/31/2023 - 06:44
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Alex Dovbnya
Amid the ongoing criminal proceedings, FTX founder Sam Bankman-Fried has been accused of attempting to stall bankruptcy proceedings in November
Disgraced FTX Founder Sought Leniency from Foreign Regulators
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In a new filing, the U.S. Justice Department claimed that Sam Bankman-Fried, the founder of FTX, attempted to delay bankruptcy proceedings in the U.S. with the aim of transferring assets from his cryptocurrency trading platform to foreign regulators, the Wall Street Journal reports

According to federal prosecutors, Bankman-Fried hoped that foreign regulators would be lenient toward him and eventually let him take back control of the failed cryptocurrency exchange. 

The allegations stemmed from statements he made to FTX co-founder Gary Wang. Wang now is cooperating with federal prosecutors after pleading guilty.

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Prosecutors further claimed that Mr. Bankman-Fried had allowed Bahamian customers to withdraw millions of dollars after FTX froze customer accounts, and wrote a letter expressing his "deep gratitude" and apologizing for the debacle.

Additionally, prosecutors made an effort to stop Bankman-Fried from contacting current or former employees due to alleged attempts by Mr. Bankman-Fried to reach out directly to witnesses in this case without representation present.

The case against the embattled FTX founder has become increasingly complicated as stocks owned by Almeda Research, which were purchased with misappropriated customer funds, were recently seized by U.S. government officials, and two parties are now disputing ownership.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at