FTX Founder Sam Bankman-Fried Arrested, Bahamas Says

originally posted by: xuenchen
Bail denied in The Bahamas !!!

He goes from First Class to Bottom Bushel 😀

How's the saying go? "There is no honor among thieves."

These people eat there own.

originally posted by: TheNextPhase2030
Finally, he might bring down the whole crypto house of cards...

Decentralized crypto is not the problem and never will be.

The problem is that people can't be trusted. The problem here is with a centralized crypto and exchange and hedge fund run by untrustworthy people.

Essentially, the problem the world has right now is too much corruption and greed, and too little accountability and justice. This problem reflects itself everywhere (DC, central banking, elections, scammers, social media, wars, the health industry, ect...) Right now we are just witnessing a refection of this cancer within the investing and political arenas.

Follow the $$$ and set examples so that these types of things become much less likely to happen in the future.

a reply to: JinMI

He's certainly got a very apt name.

Big-time investors like BlackRock, other big firms, and celebrities like Steven Curry, Shaq, and the GOAT, Tom Brady, have been burned—this guy better get a great lawyer and take a plea, or he’s getting Bernie Madoff time.




The Institutional Investors Who Lost With FTX

a reply to: peaceinoutz

Oh....he got a lawyer alright.

originally posted by: JinMI
a reply to: peaceinoutz

Oh....he got a lawyer alright.

That's not the lawyer I had in mind!

He needs a lawyer that could keep him out of jail for decades—one who negotiates a plea that saves him from 30 to 20 years on a federal rap.

You don't burn these types of people and get away with it.

SPAM

SPAM

SPAM

SPAM

12.15.2022 How the U.S. "Deep State" Operates

Miranda Devine calls out 'suspicious' timing of FTX founder's arrest: 'Obviously trying to protect someone'
Sam Bankman-Fried was detained in the Bahamas hours before scheduled congressional testimony.

Aricle that goes with the headline: www.foxnews.com...

a reply to: carewemust

That is one of the options I though for the reason to be arrested and send to NY, if he must not be allowed to talk, because democrats head will roll.

I doubt he will live long.

Little update.

Ellison, the she elf, is pleading.

Lin k

FTX co-founder and ex-chief of hedge fund Alameda Research each pleaded guilty to multiple charges, are cooperating with feds

Ellison and Wang have pleaded guilty to multiple charges...

—  Two senior executives associated with collapsed crypto exchange FTX have pleaded guilty to multiple criminal charges and are cooperating with federal prosecutors, according to unsealed court records. Additionally, the pair face civil fraud charges from the Securities and Exchange Commission that were announced Wednesday night. Gary Wang, the co-founder of FTX, and Caroline Ellison, who served as CEO of the hedge fund Alameda Research, pleaded guilty to multiple counts of conspiracy and fraud for their roles in the fraud scheme that led to the collapse of the crypto-trading platform.

and will be cooperating with prosecutors.

In letters dated Sunday, December 18, and signed the following day, Ellison and Wang agreed to plead guilty and cooperate with prosecutors.

They face additional civil charges from the SEC.

Wang created FTX’s source code that allowed Alameda to divert FTX customer funds and Ellison used misappropriated funds for the hedge fund’s trading activity, according to the SEC. “Ellison and Wang were active participants in the scheme to deceive FTX’s investors and engaged in conduct that was critical to its success,” the SEC said in a release.

SEC Release

Back in the US and released on bail.

Sam Bankman-Fried released on $250 million bond after appearing in a US court

Sam Bankman-Fried, the disgraced founder of crypto exchange FTX, appeared in a US courtroom in New York Thursday to face eight counts of fraud and conspiracy. A judge released him on a $250 million bond in his first appearance on American soil since his arrest last week in the Bahamas. The judge agreed to a bail package proposed by federal prosecutors and lawyers for Bankman-Fried that also requires the former so-called crypto king to have an electronic monitoring bracelet and be under house arrest at his parents home in Palo Alto, California. He has already surrendered his passport.

originally posted by: JinMI
Little update.

Ellison, the she elf, is pleading.

Lin k

Ex-Alameda CEO says she, others plotted to use FTX customers' funds

Caroline Ellison, the former CEO of Sam Bankman-Fried's trading firm Alameda Research, said she conspired with others to use billions of dollars of customers' funds from SBF's failed cryptocurrency exchange FTX (FTT-USD) while misleading lenders about the true nature of the companies' financial relationship.

“While I was co-CEO and then CEO, I understood that Alameda had made numerous large illiquid venture investments and had lent money to Mr. Bankman-Fried and other FTX executives,” Ellison swore, adding that the investments were financed with short-term and open-term loans worth several billion dollars from lenders across the crypto space. “I understood that FTX would need to use customer funds to finance its loans to Alameda,” she said

FTX lost billions of dollars of their clients money due to bad investments, is the story that we are being told, but what if the money was intentionally lost making bad investments with friendly investors on the other end?
Would the stolen funds now be 100% legal?
And if so, wouldn't that technically be money laundering?
Could the lost funds have been systematically funneled into hidden hands?
Some how, I don't think that these FTX people are as dumb as they would like us to believe they are.

Whenever there is a case of fraud of massive amounts of money, you have to ask yourself, where did the money go?

Then I saw this:

Greatest trade ever? Citadel’s $16 billion haul smashes hedge fund records

While most investors took a hit last year, Citadel did exceptionally well. They even beat out the "big short" guy.

“[Citadel’s $16 billion profit] even surpasses [John] Paulson’s 2007 gain, which has been described as ‘the greatest trade ever,’” Rick Sopher, chairman of LCH Investments, said in a press release on Monday. Paulson, an investor, made $15 billion in 2007 after he bet that the value of securities backed by subprime mortgages would collapse, an event that helped trigger the global financial crisis.

Wow, just wow! What are the chances there's a connection to FTX?

One Man Connects FTX, Citadel and the Crypto Market Crash

Many investors are pointing to the similarities between FTX and Citadel. One of many common threads between the two companies is that of Brett Harrison. Who is Harrison? And how does he connect one of Wall Street’s most controversial hedge funds with one of crypto’s most controversial exchanges?

Before moving into his position at FTX, Harrison spent two years at Citadel Securities, Griffin’s market-maker company. Here, Harrison took on two roles — as head of exchange-traded fund (ETF) technology and head of semi-systematic technology. In these roles, Harrison would lead Citadel Securities teams in managing quantitative trading strategies and increasing the company’s profits through optimization. These skills would lend themselves favorably to Harrison as he departed Citadel Securities — right in the middle of its controversial role in the GameStop (NYSE:GME) saga — for a job at FTX.US. Harrison would become the first president of the U.S.-based company, reuniting the executive with Sam Bankman-Fried for the first time since the pair worked at Jane Street together.

There are a couple of details that I find especially interesting about Brett Harrison:

He left FTX about 1-month before their bankruptcy.

Harrison jumped ship just over a month before the company’s precarious financial situation became public knowledge, stepping away from his role and playing advisor to the soon-bankrupt company.

He went on to attempt to start his own crypto exchange, EDX markets. EDX, hmmm

He is attempting to raise funds for a new crypto-trading software startup — one that would provide optimized trading for larger investors. Meanwhile, Citadel Securities has made an investment in this space, backing crypto exchange EDX Markets.

From the looks of it, EDX hired some investing talent, but hasn't seemed to take off. Gee, I wonder why?

edxmarkets.com...