A key allegation: In or around May 2020, Bankman-Fried directed that Alameda be exempted from the “auto-liquidation” feature of FTX’s spot margin trading services.
SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
241–250 of 251 posts
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#242I'll just quote part of what I said a month ago :) > And given what's leaked from their balance sheet, I don't see how people avoid jail time. https://news.ycombinator.com/item?id=33608691 I'll also add that SBF going on tour was the stupidest thing he could have done. Every time he spoke, he was giving the government more evidence. Hubris has often been the downfall of the rich and powerful throughout history. What'…
> people like Musk and SBF What a ridiculous take. It’s also very telling of where you get your information. Orange Man Bad has transitioned to Elon Bad.
Is there an information source that says he didn't massively overpay and saddle Twitter with a near insurmountable debt load? Reports are Twitter has stopped paying its bills [1], which is common when bankruptcy is inevitable.
[1] https://www.nytimes.com/2022/12/13/technology/elon-musk-twit...
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#243Earlier quoted context omitted.
I'm just an engineer, but even I know that if you create an entity and expect to perform financial transactions as that entity, you need a bank account. Corporations, LLCs, HOAs, clubs, lemonade stands. Well, perhaps not lemonade stands... If you don't have the bank account open yet, then don't initiate any transactions. It stretches credulity very far to believe someone running a financial institution did not know t…
I think the assumption you're making is: 1) SBF cared about traditional rules of banking/finance 2) SBF cares about doing things the 'right way' He may have been doing it purposefully wrong, or he may have just wanted to do it as fast as possible ("Move Fast and Break Things") and so he skipped the requesite steps to get to what he wanted done, faster. Not a justification for his actions, but simply why he may have d…
> 1) Crypto cared about traditional rules of banking/finance
They do not - they actively reject such rules
> 2) Crypto cares about doing things the 'right way'
In crypto, the "right way" is the way that you make money - the "right way" is also the traditional way.
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#244Earlier quoted context omitted.
Imagine reading a document like this with "United States of America v Your Name" at the top. It would be terrifying. These charges are serious and SBF is going to go down for a long time if convicted. There's also a forfeiture section in the federal indictment that demands forfeiture of all any and all property that is traceable to the commission of the offences.
On a lighter note, here's United States v. Approximately 64,695 Pounds of Shark Fins : https://en.m.wikipedia.org/wiki/United_States_v._Approximate... (the shark fins won)
That's strangely... not "lighter".
Those shark fins represented about 30 000 sharks killed (!) illegally (!!!).
They even amended the law to block such future abuses.
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#245Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#246Earlier quoted context omitted.
If he wasn't the type to go on tour and shout, then he wouldn't have attracted enough investors in the first place to be rich. It takes a specific personality to market things so others will buy, and that personality doesn't like to shut up and so won't. Some things sell themselves, but most great ideas sit around unknown by people who need them just because they don't know about it. I'd love to buy a better mousetra…
I think I know just the thing for you. It's a sophisticated autonomous mousetrap that doesn't even need bait, as it has the ability to locate and catch the mouse all by itself. With its unique combination of strength and agility, this mousetrap is able to outsmart any mouse. When you least expect it, the mousetrap will pounce and capture its target. It's called a cat.
I have one. While they do catch mice, they don't get them all.
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#247Earlier quoted context omitted.
> people like Musk and SBF What a ridiculous take. It’s also very telling of where you get your information. Orange Man Bad has transitioned to Elon Bad.
Is there an information source that says he didn't massively overpay and saddle Twitter with a near insurmountable debt load? Reports are Twitter has stopped paying its bills [1], which is common when bankruptcy is inevitable. [1] https://www.nytimes.com/2022/12/13/technology/elon-musk-twit...
> nytimes
Point proven.
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#248Earlier quoted context omitted.
>> When I read what journalists were actually saying, they were quite negative about Bankman-Fried I think the issue was there was no pressing follow up to his evasive replies. e.g Sorkin's interview. He was basically allowed to get away with "I didn't knowingly do it."
Sometimes they don't follow up because the statement is obviously evasive nonsense and readers will see it. Just letting them say damning things on the record is a win. And if you don't confront them, maybe they'll say even more? It's like the military quote: "never interrupt your enemy when he's making a mistake."
What you say seem plausible but, as an observer not privy to things, I am not sure how one can differentiate when someone is being allowed to get away versus being goaded to say incriminating things.
But If you look at the written coverage at NYT about this, you will realize that in this case it is the former and not the latter. Yes one can argue that it might have been a plan to make him comfortable to talk at the interview - but yeah :).
May be it is too subtle for me.
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#249Earlier quoted context omitted.
Sometimes they don't follow up because the statement is obviously evasive nonsense and readers will see it. Just letting them say damning things on the record is a win. And if you don't confront them, maybe they'll say even more? It's like the military quote: "never interrupt your enemy when he's making a mistake."
10 lies on 10 different topics is of greater value than spending an hour trying to pin down the one gotcha line on 1 thing. In effect Sorkin et al interviews has MADE the fraud case for the government. The lies are evidence there was intent to defraud.
Perhaps because of SBF's own hubris and not due to the way he was questioned ?
I think it was the response to coffeezilla questions that might have him in a bind not the other mainstream journalists.
Re: SEC Charges Samuel Bankman-Fried with Defrauding Investors in FTX [pdf]
#250Earlier quoted context omitted.
Is there an information source that says he didn't massively overpay and saddle Twitter with a near insurmountable debt load? Reports are Twitter has stopped paying its bills [1], which is common when bankruptcy is inevitable. [1] https://www.nytimes.com/2022/12/13/technology/elon-musk-twit...
> nytimes Point proven.
Which point was (dis)proved? That he didn't overpay, he didn't saddle the company with a huge amount of debt, or that Twitter isn't paying its bills?