Mario Duncanson/Getty ImagesThe firm's liabilities were then masked under a pseudonym account on FTX.The case of"where did the money go" is beginning to unravel for crypto exchange FTX.
On Wednesday, Bankman-Fried arrived on US soil after he was extradited from the Bahamas. On Friday the Associated Pressthat two of his former associates, Caroline Ellison, CEO of Alameda and Gary Wang, co-founder of FTX, pleaded guilty to fraud charges and were cooperating with the feds. Prosecutors feared Bankman-Fried would fight extradition if he knew his partners had turned on him.
The lawsuit also claimed that Bankman-Fried would later refer to that account as"our Korean friend's account" and/or"the weird Korean account." It added that although it was a sub-account of Alameda, it did not have the typical investment firm's email identifier"@alameda-research.com." Notes tied to the account labeled it as"FTX fiat old."
The implosion of FTX sent shockwaves throughout the crypto community. A few months before its downfall, Bankman-Fried had assured investors that the worst of the crypto market's liquidity crunch had likely passed. to shore up struggling firms that could further destabilize the digital asset industry.