Is there no end to his arrogance? FTX boss Sam Bankman-Fried inflated crypto ... trends now
Disgraced crypto boss Sam Bankman-Fried has been accused by insiders of artificially inflating the price of new digital currencies dubbed 'Samcoins'.
The 30-year-old FTX boss reportedly wooed the developers of new coins and encouraged them to make their trading debut on his exchange platform.
Sister company Alameda Research would then buy up the freshly-listed currency to raise its value while Bankman-Fried used his influence in the crypto world to drum up interest and attract further investors.
The strategy allowed Alameda - which was run by Bankman-Fried's ex-girlfriend Caroline Ellison, 28 - to look much healthier than it was prior to its implosion in November.
Disgraced crypto boss Sam Bankman-Fried, pictured, is accused of using the 'pump and dump' strategy to attract interest in new cryptocurrencies which insiders have come to label 'Samcoins'
Some of the crypto coins Alameda Research bought up included 'Maps', logo left, and 'Serum', right, - both of which have now been dubbed 'Samcoins' by insiders
It has been likened to the classic 'pump and dump' technique, prevalent in the stock market, whereby fraudsters buy up near-worthless shares aggressively.
At the same time they spread false or misleading information to other investors to 'pump up' its price before selling on the stocks for profit.
The strategy is illegal in the US.
Bankman-Fried, who is famed for his scruffy appearance and often photographed in shorts and a t-shirt, is facing eight fraud charges in relation to his handling of FTX and Alameda.
He is accused of defrauding investors and diverting billions of dollars in FTX customer money to his hedge fund which he then used as a piggy bank to fund his lavish lifestyle, personal investments and political donations.
If convicted, he could be jailed for up to 115 years.
Bankman-Fried, pictured in a court sketching at his bail hearing, used 'Samcoins' to make both his businesses appear more profitable before they came crashing down in November
Critics questioned how Ellison, 28, landed the role as Alameda CEO given her limited experience
Since the scandal unfolded, questions have been raised as to how the two businesses were able to keep going for so long and attract so many investors.
Now insiders say his promotion of so-called 'Samcoins' were a crucial part of Bankman-Fried's aggressive trading practices.
The tactic successfully pushed up the price of coins called 'Serum' and 'Maps' along with FTT, a currency he created himself.
Alameda and FTX would then use these investments as collateral for loans, according to court records and crypto insiders.
Bankman-Fried, right, and Ellison,left, lived together in a $40 million penthouse at the southern tip of New
