When the world’s most successful crypto-currency, FTX, hit the headlines a few months ago in a case involving allegations of securities fraud, it was not business as usual for one of the co-founders, Sam Bankman-Fried. Now, the news has become even more serious with a star witness testifying that he (Sam) ordered her to commit crimes and misled lenders.
The shocking news was brought to light in a court testimony by EL (Emma Lore), the former head of marketing for FTX, who claimed in her sworn statement that Sam Bankman-Fried instructed her to break the law and misled the lenders. She also accused Bankman-Fried of deliberately preventing her from providing the lenders with enough information to allow them to make an informed decision.
According to the star witness, Bankman-Fried ordered her to delete emails that contained information about the company’s financial performance, which made it impossible for the lenders to make an informed decision. Further to this, Bankman-Fried is alleged to have told EL to delete emails and delete any other records of the transaction, thus rendering the lenders unable to ascertain whether the company was indeed successful or not.
The prosecution is arguing that this behaviour was criminal and should be punished to the fullest extent of the law. Those on the defense, however, maintain that Bankman-Fried only instructed EL to delete old emails that were no longer necessary, which is not a crime.
The judge has yet to make a ruling on this case.Whatever the final verdict, it is safe to say that the integrity of the FTX company is on the line and the company needs to rebuild its reputation. If Bankman-Fried is found guilty as the star witness claimed, it would be an indelible mark on the success of the company.