NEWSMAKER-Sam Bankman-Fried apos;s Sudden Turn From White Knight To...

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Editing by Gerry Doyle)

How crypto exchanges such as Binance and its now-bankrupt former rival FTX handle customer deposits is under close scrutiny from users and regulators.

(Reporting by Rae Wee.



There was high anticipation ahead of the appearance by Bankman-Fried, who has done numerous media interviews since his firm collapsed but not been widely seen in public.

In October 2021, Deputy Attorney General Lisa Monaco announced the creation of a National Cryptocurrency Enforcement Team (NCET) to tackle investigations of "criminal misuses of cryptocurrency, particularly crimes committed by virtual currency exchanges." Monaco, in a separate speech that month, said the Justice Department's "first priority in corporate criminal matters" was to prosecute individuals who profit from corporate wrongdoing.

Ray also said there was virtually no distinction between the operations of FTX and Alameda Research, Bankman-Fried's crypto trading firm, which maintained close ties with his exchange.

Swapping USDC Coin with two other crypto tokens - Paxos Standard and Binance USD - requires using traditional dollars at a bank in New York, Zhao added.

"The banks are not open for another few hours. We expect the situation will be restored when the banks open."



But they have not released any statements since the former billionaire, 30, was detained in the Bahamas — where he has been hiding since his $32 billion empire came crashing down last month - and he is now facing criminal charges in the US.

Dec 12 (Reuters) - The sudden fall from grace and arrest of FTX's former CEO Sam Bankman-Fried has stunned investors and crypto enthusiasts who once hailed the 30-year-old American as the savior of the industry.

The day's events capped a stunning fall from grace in recent weeks for Bankman-Fried, who amassed a fortune valued over $20 billion as he rode a cryptocurrency boom to build FTX into one of the world's largest exchanges before it abruptly collapsed this year.




























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