Home » FG to Start Imposing Tax on Crypto Traders By 2023

FG to Start Imposing Tax on Crypto Traders By 2023

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Missing billions of dollars in failed crypto exchange FTX remain shrouded in mystery as disgraceful founder Sam Bankman-Fried admits gross mismanagement and tries to commit fraud I denied that.

Bankman-Fried said he “ruined” the exchange’s leadership when he made his first public appearance after the Nov. 11 collapse of FTX and sister exchange Alameda Research. , Risk Management, Customer Protection, and FTX and Alameda.

“I made a lot of mistakes,” the 30-year-old said Wednesday in a video link at the New York Times Dealbook Summit. “There’s something I’d be willing to give just so I could try again. I’ve never tried to commit fraud on anyone.”

Bankman-Fried’s participation given open questions about how Bahamas-based FTX created an $8 billion hole in its balance sheet and mishandled customer funds and controversial. Reports that FTX lent customers’ money to Alameda for high-risk trading fueled such concerns.

In an interview with New York Times columnist Andrew Ross Sorkin, who said Bankman-Fried attended from the Bahamas, the fallen cryptocurrency mogul was candid about whether he’s ever lied. did not give a good answer.

Bankman-Fried said at the summit that he “didn’t intentionally mix the funds.” At the same time, he said FTX and Alameda were linked “significantly more” than he intended, and he failed to pay attention to the trading firm’s “too large” margin positions.

He added that he does not run Alameda and is “nervous about conflicts of interest.” There was no one at FTX responsible for position risk, he said, explaining that the lack of oversight was a mistake.

out of control

The comments shed little light on the question of where client funds go, as Bankman-Fried clung to a difficult-to-parse explanation of how Alameda took huge margin positions on the exchange. did.

Restructuring expert John J. Ray III, who took over the company in bankruptcy, portrays FTX as a troubled, largely out-of-control company, embroiled in disputes and lacking basic accounting practices. and calls it the company’s worst failure. Control he has never seen before.

Bankman-Fried faces lawsuits and complex regulatory investigations over alleged wrongdoing. Some observers have speculated that his public comments could be used against him in lawsuits.

The obvious company culture of working hard and playing hard is also in the spotlight. Bankman-Fried said there were no violent parties and no illegal drug use was seen. He added that he has been prescribed medication over time to help him focus and focus.

Crypto-contagion

The digital asset sector is bracing for a growing contagion from FTX, which once boasted a $32 billion valuation before plunging into bankruptcy. With a total debt of $3.1 billion to the 50 largest unsecured creditors, he may have over 1 million creditors worldwide.

Cryptocurrency lender BlockFi Inc. filed for bankruptcy on Monday after being plagued by wipeouts. The troubled broker Genesis is trying to avoid the same fate.

BlackRock Inc. CEO Larry Fink said at the DealBook Summit that most cryptocurrency companies will probably go bankrupt following the collapse of FTX. The world’s largest asset manager was one of the companies plagued by the chaotic unraveling of Bankman-Fried’s tangled web of over 100 FTX-affiliated entities.

Bankman-Fried has provided a complex account of what led to FTX’s predicament in interviews with social media and other news outlets. An adviser overseeing the ruins of his business blamed the non-existent overseer.

potential hack

As if such hardships weren’t enough, the exact collapse of the $662 million outflow from bankruptcy FTX remains another mystery. In an interview at Summit, Bankman-Fried said there was inappropriate access after FTX’s vicious cycle.

Another speaker at the New York summit, Treasury Secretary Janet Yellen, called the FTX debacle “the Lehman moment in cryptocurrency,” referring to the collapse of investment bank giant Lehman Brothers in 2008.

The cryptocurrency market has stabilized somewhat after falling sharply in November as the turmoil over FTX intensified. Still, the gauge of the top 100 tokens is down more than 60% this year, with monetary policy tightening and he FTX being hit by a series of most notable cryptocurrency crashes.

Bankman-Fried, which at one point had a fortune of $26 billion, was described a few weeks ago as the John Pierpont Morgan of digital assets and was willing to put his fortune in helping the industry. He said in an interview that he only had one credit card and $100,000 left in the bank.

Asked whether he was candid about FTX, Bankman-Fried said, “I was as honest as I could be.”

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