April 25, 2024

Sam Bankman-Fried Issued a Deposition Subpoena

The recent legal dispute facing Sam Bankman Fried, the former FTX chief executive officer, shows no indications of fading, with new lawsuits weekly. In addition, recent reports say that the former FTX co-founder has been issued a subpoena to appear at a deposition about a bankrupt virtual digital asset company Voyager digital.

Former FTX Co-founder to Appear in Court

According to the reports, this report was confirmed in a court proceeding on the 18th of this month. The former chief executive officer of the collapsed FTX, accompanied by Caroline Ellison, the former Alameda CEO, FTX head of product Ramoc, and collapsed FTX co-founder Gary Wang will all appear for a remote deposition on the 23rd of this month.

Additionally, they must generate all demanded reports and communications before the 20th of this month. The deposition subpoena was issued by representatives of unprotected creditors impacted by the collapse of the crypto exchange firm, Voyager and consequent bankruptcy.

On the 6th of July of the previous year, the virtual digital asset custodian and exchange, Voyager Digital, reported that it had filed for bankruptcy security in the United States Bankruptcy Federal court in New York. According to court proceedings, Voyager Digital had a debt profile of one dollar and ten billion dollars.

The industry acknowledged mishaps in its company because of significant losses and the drastic depreciation in the virtual crypto asset markets. However, it was largely alleged that the bankruptcy of Three Arrows Capital, the hedge fund impacted the industry. In addition, the hedge fund made massive losses on Terra Luna, significantly impacting the virtual crypto asset universe.

According to the innovation, the crypto exchange Voyager Digital Creditors ascertained a 1.4 billion dollar agreement to liquidate its digital assets to the collapsed FTX. However, the downfall of FTX in November breached the agreement. Ever since, Binance has come in and approved to acquire Voyager, the crypto exchange firm, for one billion dollars.

FTX Legal Disputes Strengthen

The collapsed crypto exchange industry FTX ran the crypto exchange space for many years with Binance. Although, things took a strange turn in November of the previous year when the collapsed FTX filed for bankruptcy in the Federal Courts.

It was later realized that FTX utilized user assets to capitalize on Alameda Research, its sister company that made shoddy capitalization. Court proceedings indicated that the collapsed crypto exchange owes over three billion dollars to its top fifty creditors.

Amidst these are the innovation industries Microsoft, the social media platform Tik Tok; Apple; Amazon, the e-commerce leader; and Netflix, the streaming service. In addition, the collapsed crypto exchange FTX also owes money in industries in the same crypto network, for example, Coinbase, Bittrex, Binance, BitGo, BitStamp, and BitNob.

The former chief executive officer of the collapsed FTX, Mr. Sam Bankman Fried, has been indicted with conspiracy, mismanagement of user assets, and fraud allegation. However, the former collapsed FTX co-founder has dismissed all allegations and speculations of charges and lawsuits against him, demanding that he only attempt to salvage the firm from possible collapse or downfall.

It was later revealed this week that the collapsed crypto exchange had started demanding refunds from creditor recipients to retrieve the lost assets. Following these intensive events, FTT, the company’s native coin, has dropped vigorously since the collapse of the exchange.

The token changed hands at 1.62 dollars at the time of publishing with a market capitalization of 572,192 dollars and position 212, according to CoinMarketCap.

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