Throughout testimony earlier than the Home Monetary Companies Committee on December 13, John Ray III, the newly appointed CEO of bankrupt crypto trade FTX, informed members of Congress that FTX U.S. had 2.7 million person accounts whereas FTX Worldwide had 7.6 million person accounts. That’s a complete of 10.3 million potential prospects of FTX which will have been bilked out of some or all of their funds by the alleged mastermind, Sam Bankman-Fried, and his co-conspirators. That’s greater than 250 instances the defrauded prospects of Ponzi mastermind Bernie Madoff.
Whereas Ray acknowledged that some FTX customers had a number of accounts, even in case you reduce the ten.3 million person accounts by as a lot as two-thirds, 3.4 million accounts continues to be 85 instances the variety of Madoff victims.
For those who throw into the combination that Madoff acquired his victims over greater than 4 a long time and Sam Bankman-Fried’s FTX has been in operation for lower than 4 years, the scope of the variety of individuals impacted is beautiful. And if one considers the client losses at different crypto corporations which have filed chapter, doubtlessly because of their publicity to FTX, the entire greenback quantity of losses could come near and even exceed the estimated $17.8 billion of misplaced principal within the Madoff fraud.
https://www.counterpunch.org/2022/12/28/sam-bankman-frieds-crypto-companies-bilked-a-potential-10-3-million-user-accounts-thats-250-times-more-than-madoff/
