The Fall Of Crypto Exchange Ftx Is 'worse Than Theranos, Worse Than Madoff' As Federal Probes Mount,

The fall of crypto exchange FTX

is 'worse than Theranos,

worse than Madoff' as federal probes mount, former SEC official says


The fall of crypto exchange FTX is 'worse than Theranos, worse than Madoff' as federal probes mount, former SEC official says (msn.com)

https://www.msn.com/en-ca/money/mar...taskbar&cvid=57730733afb1460e9a11563730510b1f



Sam Bankman-Fried. Craig Barritt/Getty Images for CARE For Special Children© Craig Barritt/Getty Images for CARE For Special Children

• The fall of cryptocurrency exchange FTX has drawn numerous comparisons to the collapse of Lehman Brothers.
• But a former Securities and Exchange Commission official likened FTX to the Theranos and Bernie Madoff debacles.
• "This is worse than Theranos, this is worse than Madoff," John Reed Stark told Yahoo Finance.

1 of 12 Photos in Gallery©FTX Official/YouTube
FTX made massive sponsorship deals with sports leagues and star athletes like Tom Brady. Here's what experts say could happen after the crypto exchange's implosion.

• Sam Bankman-Fried's FTX poured millions of dollars into naming rights, partnerships, and sponsorships in the sports world.
• With FTX's survival in question, massive deals with the likes of Tom Brady, the Miami Heat, and MLB are in jeopardy.
• Experts say Miami's FTX Arena may see a name change soon, but some celebrities may have trouble getting paid.

Sam Bankman-Fried's crypto-exchange platform FTX is facing an uncertain future.
Rival platform Binance had initially agreed to bail out FTX as the company faces a severe liquidity crisis after getting hit with $6 billion in withdrawals in just 72 hours, but Binance announced Wednesday that the deal fell through.
FTX was once worth $32 billion, as cryptocurrency prices surged in 2020 and 2021. During that time, Bankman-Fried poured millions of dollars into many high-profile sponsorships in the world of sports, including partnerships in baseball, basketball, football – and even Formula One.
Now that it is looking increasingly likely that the company may not survive its current predicament, questions loom about the future of these deals.
Here are some of FTX's most high-profile sports deals and what experts say may become of them:

The fall of cryptocurrency exchange FTX has drawn numerous comparisons to the collapse of Lehman Brothers, which sparked the 2008 financial crisis.
But a former Securities and Exchange Commission official likened FTX to the Theranos and Bernie Madoff debacles.
John Reed Stark, the founder and former chief of the SEC's Office of Internet Enforcement, pointed to reports that FTX transferred client funds to trading house Alameda earlier this year.
"This is worse than Theranos, this is worse than Madoff, if what I'm reading is true," he told Yahoo Finance on Thursday, a day before FTX and its affiliates filed for Chapter 11 bankruptcy.


Related video: Crypto Report: FTX's Implosion


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FTX didn't respond to a request for comment.

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In January, a jury found Theranos founder Elizabeth Holmes guilty of defrauding investors out of hundreds of millions of dollars. In 2009, Madoff pleaded guilty to a Ponzi scheme that defrauded tens of thousands of investors of as much as $65 billion.
Stark noted "sophisticated" FTX investors have had to write down their holdings, even after performing due diligence on its financials.
On Thursday, Venture capital firm Sequoia Capital informed its partners that it wrote off its entire $213.5 million investment in FTX as a complete loss.
He also pointed to reports that the Justice Department is investigating FTX, which the SEC and Commodity Futures Trading Commission are probing as well.
Stark said the SEC's enforcement division is likely standing down while the DoJ conducts its investigation, which could involve informants, search warrants and arrests. The DoJ prosecutes criminal cases, while the SEC enforces civil laws.
Meanwhile, FTX exemplifies issues in the broader crypto space, he added.
"Some of these companies, you don't even know where they're headquartered. You don't even know who works there. There's absolutely no transparency," Stark said. "The contagion is rapidly spreading amongst all of the various crypto ecosystem and that's a serious problem for anybody that's doing anything with crypto."

 

Tayvirg Grey

·

Just vanished from his posh island to Argentina. Nowhere to hide. Nowhere to go.
@ColdWarPatriots

 

FTX Filed Bankruptcy. So it is done. Dominoes incoming quickly. Tether? Its time for the FLOOD.
BURST the DAMS!
@ColdWarPariot

https://www.msn.com/en-us/money/ma?...ykV7-uyTO39HJWkMjmmVdJbQ2Kriy2tLjgaw28qf_mYY4

• 
  De Anna Stidham
  When dominoes start falling, many will be the repercussions.
  
  
  from link
  https://www.msn.com/en-us/money/ma?...ykV7-uyTO39HJWkMjmmVdJbQ2Kriy2tLjgaw28qf_mYY4
  
  
  https://www.msn.com/en-us/money/ma?...ykV7-uyTO39HJWkMjmmVdJbQ2Kriy2tLjgaw28qf_mYY4