FTX Collapse Sparks Calls to Jail Founder Bankman-Fried

• SBF has lately been described as the crypto industry’s Bernie Madoff on social media.
• FTX`s financial records demonstrated the existence of a backdoor in the books.
• The petition will be governed by the court.

Sam Bankman-Fried has recently been dubbed the Bernie Madoff of crypto by social media. This comes after FTX’s insolvency and its filing for Chapter 11 bankruptcy on November 11. 

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According to Reuters, which cited two insiders who “held senior FTX roles until this week,” the liquidity issue appeared to have been caused by its founder allegedly moving $10 billion of client cash from FTX to his bitcoin trading site Alameda Research.

Following the reports, FTX’s financial records also demonstrated the existence of a “back door” in the books that was made using “bespoke software.” According to the reports, Bankman-Fried might use it to change the company’s financial records without setting off any alarms. Bankman-Fried however denied the existence of a “back door.”

The crypto community has thus gone ahead to criticize SBF who has caused the imbalance in the market recently.

Numerous individuals who consider the disgraced former FTX CEO to be the Bernie Madoff of cryptocurrency leave numerous comments on each tweet that he makes.

“In 2009, Bernie Madoff committed the biggest investment fraud in history. In 2022, Sam Bankman-Fried committed the biggest crypto fraud in history,” wrote a Twitter user.

Reddit users have also brought out their views. A user thinks that SBF knew exactly what he was doing. According to him, he had no reason to mess around with other people’s money, he was making more than enough.

The specifics of prospective criminal and civil investigations were included in a comprehensive file with the Delaware Bankruptcy Court. The petition, which was submitted late on Monday by FTX and more than 100 related entities, will be governed by the Court.

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