Home Bitcoin News Bitcoin Mining Chapter Reveals $1 Billion FTX-Tied Stake in Bitcoin Miner – Investopedia

Chapter Reveals $1 Billion FTX-Tied Stake in Bitcoin Miner – Investopedia

6 min read
Comments Off on Chapter Reveals $1 Billion FTX-Tied Stake in Bitcoin Miner – Investopedia

Failed crypto tycoon Sam Bankman-Fried invested $1 billion into Genesis Digital Belongings, a bitcoin miner in Kazakhstan, simply months earlier than the collapse of his FTX platform heralded a crypto winter that is wanting extra like an ice age.

Bankman-Fried made the funding, the crypto alternate’s largest, by Alameda Analysis, the FTX-linked hedge fund that is on the middle of his agency’s chapter, the Wall Avenue Journal reported.

Key Takeaways

  • Former FTX CEO Sam Bankman-Fried’s Alameda Analysis invested about $1 billion in Kazakh bitcoin miner Genesis Digital Belongings, chapter disclosure has proven.
  • Bankman-Fried joined the board of the mining agency in October 2021, however resigned in November 2022, a day earlier than FTX filed for bankruptcy safety.
  • The sizable funding, one in all FTX’s largest belongings, is one more perception into the FTX collapse, which has irked the crypto group as about 1 million FTX creditors await reimbursement.
  • Bankman-Fried has defended his dealings as the top of FTX on social media, saying he “did not steal funds.”

$1 Billion On Mining Agency

Alameda invested $1 billion between August 2021 and April 2022 4 occasions: $100 million in August 2021, $550 million in January, $250 million in February, and $250 million in April 2022.

Alameda shelled out half its funding on operations, spending the remaining to purchase shares held by two Genesis co-founders. Bankman-Fried joined the Genesis board in October 2021 and resigned on November 10, 2022—someday earlier than FTX filed for bankruptcy.

Genesis did not reside as much as its identify. Bitcoin mining earnings slid due to falling bitcoin costs, climbing electrical energy costs, and a excessive community hash charge. U.S. financier and short-lived Trump spokesman Anthony Scaramucci’s SkyBridge Capital invested greater than $60 million in Genesis and minimize its stake by 59% between its June excessive level and September 2022, in response to SkyBridge securities filings.

It did not assist that the Kazakhstan authorities restricted bitcoin mining, which led the corporate to maneuver away from the nation— and to the U.S.

SBF Defends Himself on Substack

Bankman-Fried, who’s out on bail at his mother and father’ dwelling in California and awaiting trial on federal fraud costs, defended himself on social media this week. He wrote on the e-mail publication platform Substack that he is harmless and gave his clarification of what brought on FTX’s collapse.

FTX and Alameda imploded because of a crypto market meltdown and insufficient hedging on Alameda’s half, in response to Bankman-Fried.

“I did not steal funds, and I definitely did not stash billions away,” Bankman-Fried wrote on Substack. “Alameda misplaced cash because of a market crash it was not adequately hedged for–as Three Arrows and others have this yr. And FTX was impacted, as Voyager and others had been earlier,” he concluded.

The Backside Line

In the meantime, FTX’s former director of engineering, Nishad Singh, engaged in a proffer session—a gathering between a legal defendant or suspect and the federal government outdoors a court docket—which is able to provide him restricted immunity. Singh hasn’t been accused of wrongdoing. Earlier, former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang agreed to cooperate with prosecutors.

Adblock test (Why?)

Source link

Load More Related Articles
Load More By admin
Load More In Bitcoin Mining
Comments are closed.

Check Also

Bitcoin Sellers Exhausted, Accumulators HODL The Line – Bitcoin Journal

The beneath is an excerpt from a latest version of Bitcoin Journal PRO, Bitcoin Journal…