According to the Financial Times, Crypto.com runs proprietary trading teams who involve themselves in trading against their customers, an allegation that Crypto.com completely refutes. From the viewpoint of FT, they have received input from five people who insist that exchange personnel offered trading houses statements under oath regarding the fact that the entity had nothing whatsoever to do with trading.
According to Crypto.com, they, on the other hand, make certain that the exchange remains risk-free. The FTX feels that the company is into hiring internal marketing members who are not supposed to divulge the fact, a claim totally denied by the entity. In the eyes of U.S. regulators, a single platform would not be welcome by any financial industry to handle multiple factors related to trading.
It was the early part of the year 2023 when the U.S. Commodity Futures Trading Commission (CFTC) made the revelation of there being 300 house accounts on Binance and the ownership belonging to its founder, Changpeng Zhao. The allegation was that Binance was utilizing these accounts to carry out illegal wash trading to turn customers towards a fresh token listing. This was also supposedly in the case of Coinbase, as well as Gemini.
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Where FTX is concerned, the Judge of the U.S. District Court for the Southern District of New York, Lewis Kaplan, was instrumental in giving into the severance of five cases that were being tried against Sam Bankman-Fried. Instead, there has been the addition of some fresh charges. Many of the law firms, Fenwick & West, which has Dan Friedberg, agreed to take on the case for SBF and has been responsible for sharing suggestions regarding a lot of legal factors.
Additionally, F&W fought for North Dimension, a company involved in providing US-based customers the option of making deposits to FTX when the local banks were in refusal mode. At the present moment in time, Friedberg seems to be supporting the Feds in terms of the charges leveled against SBF.
In the case of the FTX debtors, they are continuing their fight in the U.S. Bankruptcy Court. A prime law firm, Sullivan & Cromwell, is claiming the amount of $37.5 million for legal services rendered. One other is Alvarez and Marcel, who is claiming $35.9 million in the form of legal fees, as well as another $1.1 million in miscellaneous expenses.
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Where the customers are concerned, a document has been filed suggesting the narrowing down of the overall customer list. The intention behind this is to maintain the privacy of the listed customers. However, the unedited list will be duly made available to the DoJ, as well as the SEC and the state of Texas. FTX’s court-appointed CEO, John J Ray, has forwarded a bill to the court for claiming against his presence in court proceedings, in relation to an option for revamping the exchange, in terms of its multiple creditors, as well as debtors.
