Did you know? Ex-FTX CEO Sam Bankman lost millions worth of Ripple (XRP)

Sam Bankman lost millions worth of Ripple (XRP)

In a startling revelation, former FTX CEO Sam Bankman-Fried, notorious for his cryptocurrency endeavors, incurred substantial losses, leading to the disappearance of a staggering 20 million Ripple (XRP) tokens valued at $4 billion at that time. The intricate tale unfolded within the annals of Alameda Research, where Bankman-Fried’s mismanagement led to the funds’ vanishing act, a revelation laid bare by a recent exposé in the Wall Street Journal.

During his tenure as the head of investments at Alameda, Bankman-Fried allegedly borrowed a substantial sum of $170 million for trading purposes, only to find himself drowning in losses. When confronted by both employees and investors regarding the missing funds, Bankman-Fried provided nebulous explanations, further deepening the enigma surrounding the financial abyss.

In a bid to quell rising concerns, Bankman-Fried, in a deceptive move, falsely reassured his company’s staff that approximately 80% of the lost funds had been accounted for, though he remained oblivious to their whereabouts. The situation escalated when the employees, alarmed by the gravity of the situation, pressured Bankman-Fried into halting trading activities for a two-week hiatus.

This hiatus, however, proved to be the turning point, underscoring the severity of the crisis and severing the trust link between Alameda’s team and Bankman-Fried. The missing XRP tokens, which proved to be the final blow to the trust once placed in Bankman-Fried, were eventually traced months later. Astonishingly, the tokens had been surreptitiously transferred from Kraken, a prominent cryptocurrency exchange, to Bithumb, a South Korean-based crypto platform.

Bithumb, the unsuspecting recipient, received the 20 million XRP coins without any indication of the sender’s identity, adding another layer of mystery to this convoluted saga. Bankman-Fried, ensnared in the web of his misdeeds, finds himself incarcerated in Brooklyn’s Metropolitan Detention Center since August 11, facing the grim prospect of several years behind bars.