Fun

News Feed - 2023-10-06 10:10:13

Tom Mitchelhill7 hours agoSBF was ‘very resistant’ to investors on FTX board: Paradigm co-founderMatt Huang said he was led to believe that Alameda Research was not being provided any special treatment by FTX.1812 Total views6 Total sharesListen to article 0:00NewsJoin us on social networksSam “SBF” Bankman-Fried was “very resistant” to having investors join the board of directors at FTX, claims Matthew Huang, co-founder and managing partner of crypto investment firm Paradigm.


Paradigm and a number of venture capital firms, including Sequoia, Temasek and BlackRock, were burned by their funding of the now-bankrupt crypto exchange, with all facing scrutiny — and subsequently issuing statements — on their investment in FTX.


Testifying on the third day of Bankman-Fried’s trial in a New York Federal Court, Huang claimed Bankman-Fried believed having investors on FTX’s board of directors wouldn’t bring much to the table.


FTX’s board reportedly consisted of three people: Bankman-Fried, an unnamed lawyer from Antigua and Barbuda — the same country where FTX was incorporated — and Jonathan Cheesman, a former FTX executive who stepped down from the board in June.


Huang engaged in a handful of conversations with Bankman-Fried ahead of Paradigm’s $125-million investment in the exchange’s staggering $900-million Series B funding round it closed in July 2021.


Huang admitted to not conducting enough due diligence and that he relied too heavily on information supplied by Bankman-Fried.


Despite being concerned by the lack of formal structure at FTX and its potential entanglement with its sister hedge fund, Alameda Research, Huang said investors were lured in by the rapid expansion of FTX’s market share in the crypto industry.


Still, Huang noted that he and other investors at Paradigm were concerned that Bankman-Fried may have been spending more time working on Alameda instead of FTX, a distraction that would have been at the expense of Paradigm’s investment.


Additionally, Huang noted that there were concerns that Alameda may have been receiving preferential treatment from FTX. If these concerns turned out to be true, Huang said he was fearful of the reputation damage it may inflict on the company.


Related:College roommate talked to Sam Bankman-Fried about FTX’s $8B hole on a paddle tennis court: Trial


Huang said he was led to believe by Bankman-Fried that Alameda was not being provided with any privileged treatment by FTX. The same day, FTX co-founder Gary Wang testified that Alameda was given access to a near-unlimited flow of capital from the exchange.


Additionally, Huang said he had no knowledge of the alleged commingling of funds between FTX and Alameda Research.


The prosecution asked Huang if his decision to invest in FTX would’ve changed if he’d been told the exchange was allegedly using customer deposits for investment purposes.


“Yes,” Huang replied. “It’s generally understood that customer deposits are sacred.”


Magazine:Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis# Fraud# Law# Business# Trial# Venture Capital# United States# Court# Sam Bankman-Fried# FTX# RegulationAdd reactionAdd reactionRead moreWhat is an atomic swap, and how does it work?Expect new crypto regulations to follow Bitcoin ETFsCrypto VC: Token investing and the next bull run with Digital Wave Finance

News Feed

SUI Primed For Market Correction – Analyst Sets Target At $2.75
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Tom Blackstone8 hours agoOpenAI staff tells board to resign after Sam Altman ousting: Report505 out of 700 employees reportedly signed a letter stating that the board undermined the company’s mission by firing Altman.1
EOS Maker Block.One Expands US Footprint With DC-Area HQ
Block.One, the software company behind the EOS blockchain, will expand its U.S. footprint with a new headquarters and a $10 million investment in Arlington County, Va. Virginia Gov.
Former FTX exec Ryan Salame to be sentenced on May 1
Turner Wright5 hours agoFormer FTX exec Ryan Salame to be sentenced on May 1Out of all the individuals charged related to fraud at FTX and Alameda, Ryan Salame was the only former executive who didn’t testify at Sam Ba
Price analysis 8/14: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Rakesh Upadhyay30 minutes agoPrice analysis 8/14: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIBBitcoin is finding it difficult to rise above the overhead moving averages, indicating that the bears are trying to fli
Cardano Soars Nearly 130% To $30 Billion, Climbs To 9th In Market Cap Rankings
Este artículo también está disponible en español. Cardano’s decentralized finance (DeFi) environment has increased significantly, with the total value locked (TVL)
Russia Shuts Off EU Gas, Vitalik Discusses Bitcoin Security, and More — Bitcoin.com News Week in Review
Russia Shuts Off EU Gas, Vitalik Discusses Bitcoin Security, and More — Bitcoin.com News Week in Review Macro markets and geopolitics dominated the news this week, with Russia cu
Crema Finance Hacker Negotiates With Defi Project’s Team, Returns $8 Million in ETH and SOL
Crema Finance Hacker Negotiates With Defi Project"s Team, Returns $8 Million in ETH and SOL Following the hack on July 2, 2022, the team behind the decentralized finance (defi) pro
Raoul Pal: Bitcoin Could Hit $450,000 In Liquidity-Driven Supercycle
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin.com Wallet Users Can Now Purchase More Than $10K Worth of Cryptocurrency
Bitcoin.com Wallet Users Can Now Purchase More Than $10K Worth of CryptocurrencyDuring the end of March, news.Bitcoin.com reported on the newly updated Bitcoin.com Wallet that featu
New Lawsuit Claims Solana Is Unregistered Security — ‘Investors Have Suffered Enormous Losses’
New Lawsuit Claims Solana Is Unregistered Security — "Investors Have Suffered Enormous Losses" A class-action lawsuit has been filed claiming that cryptocurrency solana (SOL) is
UBS Considers Acquiring Credit Suisse, Requests Government Backstop in Deal
UBS Considers Acquiring Credit Suisse, Requests Government Backstop in Deal After Credit Suisse Group AG announced it would borrow 50 billion Swiss francs from the Swiss National B