In his latest tweet, Sam Bankman-Fried denied the existence of the secret “Wirefraud” conversation of FTX executives. At the same time, US House Committee Chair Maxine Waters commented on SBF’s arrest, which compromises the hearing that was scheduled for today.
Wirefraud, the alleged confidential chat of FTX executives
The Australian Financial Review (AFR) has published an article detailing how Sam Bankman-Fried (SBF) and a number of senior FTX and Alameda Research executives are alleged to have been chatting on a secret Signal group called Wirefraud to exchange confidential information.
The group is said to have included SBF, FTX co-founders Zixiao Wang and Nishad Singh, and Caroline Ellison, who headed Alameda Research. Information about this hypothetical group remains rather elusive, except that it would have been active before the collapse of the exchange, to discuss ongoing operations.
However, we should note SBF’s reaction to the news, in a final tweet published before his arrest. Without firmly denying the existence of such a group, he explains that if this rumour is true, “he was not part of this circle of insiders”. He also says that he believes it is all false:
If this is true then I wasn’t a member of that inner circle
(I’m quite sure it’s just false; I have never heard of such a group)
– SBF (@SBF_FTX) December 12, 2022
It is also worth noting that “Wirefraud” translates as “electronic fraud”, which, if true, would be a questionable choice of name.
Hearing cancelled following arrest
Only Sam Bankman-Fried was to be heard today by the US House Committee. The person concerned had finally confirmed his participation to Maxine Waters, the Chair, after having suggested that he would not be able to come.
SBF’s initial response was, after all, correct, as his arrest effectively compromises his hearing.
Maxine Waters spoke out on the subject last night, when SBF and his lawyers were confirmed to be attending:
“I’m not going to be there.
I am surprised to learn that Sam Bankman-Fried has been arrested in the Bahamas at the direction of the US Attorney for the Southern District of New York. It is time for the process of bringing Mr. Bankman-Fried to justice to begin. “
While she expressed “disappointment” at not being able to hear from SBF, she affirmed the Committee’s “determination” to “get to the bottom of what happened”.
Now that FTX’s founder is behind bars, the next few weeks should be rich in answers to this case that will leave a lasting mark on the ecosystem
