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

Central Bank of Brazil Director States Government Will Know ‘Everything You Have in Bitcoin’
Central Bank of Brazil Director States Government Will Know "Everything You Have in Bitcoin" Mauricio Moura, a current director of the Central Bank of Brazil, stated that anonymity
Tom Mitchelhill4 hours agoIs SBF secretly behind BALD? Crypto Twitter debates latest conspiracyCrypto Twitter has been set ablaze with a new conspiracy that Sam Bankman-Fried is secretly pulling the strings of a new meme
IMF: Global Economic Outlook Has ‘Darkened Significantly’ — Global Recession Cannot Be Ruled Out
IMF: Global Economic Outlook Has "Darkened Significantly" — Global Recession Cannot Be Ruled Out The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warn
Africa-Focused Fintech Chipper Cash Weighs Possible Sale of Business
Africa-Focused Fintech Chipper Cash Weighs Possible Sale of Business One of Africa’s fintech giants, Chipper Cash, is said to be weighing the possibility of selling the busin
Safeguarding Investments: Cryptimi.com Offers the Solution
Safeguarding Investments: Cryptimi.com Offers the Solution Anyone venturing into the digital currency scene understands the significance of performing analyses to evaluate potent
Bitmex Agrees to Pay $100 Million to Resolve Charges With FinCEN and CFTC
Bitmex Agrees to Pay $100 Million to Resolve Charges With FinCEN and CFTC Global cryptocurrency derivatives exchange Bitmex has settled charges with the U.S. Com
Savannah Fortis9 hours agoIndia House passes bill to ease Big Tech data complianceThe lower house in the parliament of India approved updates to a bill that would ease data storage, processing and transfer standards for
Bitcoin Price Struggles: Crypto Analyst Bucks Back Against Bearish Sentiment, Top Is Not In
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
Savannah Fortis9 hours agoUK AI Safety Summit begins with global leaders in attendance, remarks from China and MuskThe U.K. AI Safety Summit concluded its first day with a common declaration, the U.S. announcing an AI sa
Elon Musk Giving ‘Serious Thought’ to Creating Social Media Platform With Free Speech as Top Priority
Elon Musk Giving "Serious Thought" to Creating Social Media Platform With Free Speech as Top Priority Tesla and Spacex CEO Elon Musk says that he is “giving serious thought
Hawaii crypto firms no longer need MT license, regulator rules
Helen Partz25 minutes agoHawaii crypto firms no longer need MT license, regulator rulesWhile being exempt from the Money Transmitter License requirement, crypto firms in Hawaii will still have to comply with any federal
Bitcoin, Ethereum Technical Analysis: BTC Back Above $40,000, ETH Eyes $3,000 as Fed Meeting Looms
Bitcoin, Ethereum Technical Analysis: BTC Back Above $40,000, ETH Eyes $3,000 as Fed Meeting Looms Following days of consolidation, bitcoin rallied above $40,000 on Tuesday, which