The hidden ties between the FTX digital asset exchange and the Tether stablecoin may be coming into sharper focus, thanks to a questionable investment in an obscure U.S. bank.
FTX had its initial U.S. Bankruptcy Court hearing in Delaware this week, and online attendees were treated to several memorable factoids, including lawyers appointed to oversee the collapsed exchange saying the firm was “effectively run as a personal fiefdom of [CEO/founder] Sam Bankman-Fried (SBF).” SBF has been accused of using billions’ worth of FTX customers’ deposits to bail out FTX’s affiliated market-maker Alameda Research in a vain effort to keep his incestuous Ponzi scheme going.
Here’s the letter from SF Fed prez Mary Daly approving Fed Reserve System membership (SWIFT and wires) for the bank that SBF bought.
That’s Deltec Chairman Jean Chalopin on the Board, as is Gemini Chief Compliance/Operating Officer Noah Perlman.
Burn. It. The. Fuck. Down. https://t.co/abdn8D33vE pic.twitter.com/XWSDAwKVOl
— Ben Hunt (@EpsilonTheory) November 24, 2022
SBF’s insistence on controlling all things FTX/Alameda is posing problems for the attorneys and bankruptcy experts tasked with assessing which assets listed on the balance sheets actually exist outside SBF’s imagination. With creditors owed billions, FTX attorney James Bromley told the court that it is “essential that we first maximize the value of the assets we have, whether that means selling assets, selling…
