Sam Bankman-Fried Denies Participation in “Wirefraud” Group Chat

Sam Bankman-Fried Denies Participation in “Wirefraud” Group Chat

Just hours before Bankman-Fried’s arrest, the former FTX CEO took to Twitter to deny being a part of the “Wirefraud” chat.

Sam Bankman-Fried, former crypto exchange FTX CEO and founder, has denied rumors of knowledge or involvement in the “Wirefraud” group chat.

According to the news report shared by the Australian Financial Review (AFR), Bankman-Fried, together with FTX co-founder Zixiao “Gary” Wang, Alameda Research CEO Caroline Ellison and FTX engineer Nishad Singh had a group chat dubbed Wirefraud.

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The chat was reportedly created on messaging app Signal and was used to “send secret information about operations in the lead-up to” FTX’s collapse.

However, Bankman-Fried denied the claims on Twitter. The former FTX CEO stated that he “wasn't a member.” On top of that, the man added that he is “quite sure it's just false” information because he had “never heard of such a group.”

In a recent month, Sam Bankaman-Fried was under fire from the press, various institutions and authorities. The whole bouquet of charges and investigations were launched against FTX and its former CEO, which led to Bankamn-Fried’s arrest on December 12th.

The arrest comes just a day before Sam Bankman-Fried was supposed to appear before the US Congress and explain what happened with FTX. The other week, the former FTX CEO received a public invitation to testify in the hearing before the US Congress from a US representative and the House Financial Services Committee Chair, Maxine Waters.

Although Bankman-Fried did not show much interest in testifying, Waters remained persistent and claimed that if necessary, Congress plans to issue a subpoena to make Bankman-Fried appear before the US Congress. However, when SBF finally agreed to appear before the US Congress, Bahamian authorities slammed the doors for Bankamn-Fried’s appearance by arresting him.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree