Caroline Ellison and Gary Wang are cooperating in the criminal case against SBF

Post by csomar » Thu, Dec 22, 2022, 12:31 PM UTC

rippercushions wrote: post #67

moab wrote: post #10

Earlier quoted context omitted.

110 years! I wonder how many she'll get out of that for being the first out of the woodwork.

110 years, fine of up to 2x the "pecuniary gain" of the fraud, and last but certainly not least, a "$100 mandatory special assessment" for each of the seven counts. Gotta pay for those Federal investigators somehow! Also, I like how the they're very clear that restitution must be made as "a sum of money in United States currency", as opposed to, say, FTT tokens or Bored Ape NFTs. However, the section on forfeiting th…

Post by ls15 » Thu, Dec 22, 2022, 1:10 PM UTC

DebtDeflation wrote: post #262

resoluteteeth wrote: post #254

Earlier quoted context omitted.

Wasn't this already the SEC's position?

The original position was that cryptocurrencies were commodities not securities, and that is what allowed all the bullshit to flourish. In July of 2017 the SEC issued a ruling that any coin issued via ICO could be considered a security on a case by case basis. Yesterday is the first time I've seen the SEC make the argument that exchange native tokens are investment contracts and therefore securities.

    - An investment of money
        (Send money/BTC, get token)
    - In a common enterprise 
        (the exchange)
    - With the expectation of profit
        (Token burns)
    - To be derived from the efforts of others
        (Exchange pays with profits for token burns)

Post by dbuder » Thu, Dec 22, 2022, 1:14 PM UTC

joe_the_user wrote: post #144

meanmrmustard92 wrote: post #110

Caroline's dad is an MIT econ prof and wrote a series of books titled Hard Math for X. New installment should surely be Hard Math for Crypto Fraud and Jail Evasion.

Shouldn't be that hard, Michael Milken is doing fine. "He is known for his role in the development of the market for high-yield bonds ("junk bonds"), and his conviction and sentence following a guilty plea on felony charges for violating U.S. securities laws... With a net worth of $6 billion as of 2022, he is ranked by Forbes magazine as the 412th richest person in the world" https://en.wikipedia.org/wiki/Michael_Mil…

Post by nradov » Thu, Dec 22, 2022, 1:47 PM UTC

rosnd wrote: post #190

SturgeonsLaw wrote: post #182

Earlier quoted context omitted.

Same with the "street value" they cite in drug busts. Sure, that guy with 100kg of coke is going to be selling it in little 1g baggies.

Well, that's a lie which at times has real impact on trial outcomes. I wouldn't really put it in the same category.

Post by qeternity » Thu, Dec 22, 2022, 1:56 PM UTC

hnews_account_1 wrote: post #240

jcampbell1 wrote: post #206

Earlier quoted context omitted.

Nice comparison. Trabucco resigned in August but Caroline was on record saying he hadn’t been around for months. Some Alameda loans were called in May, and that is when SBF and Caroline did some obviously shady stuff. I think that is when he walked, as that is when the trading strategy became limited to just propping up FTT to fake the balance sheet. He seemed like a legit trader based on his Twitter. It takes about…

He made several stupid claims on his twitter about trading that anyone in the industry would immediately infer was a complete misunderstanding of the basics of finance. As did SBF and Caroline. Nothing about them was smart. It was a lot of jargon thrown into their talk that should tickle most people’s spidey senses.