SBF Arrested by Bahamian Authorities • Hacker News Board

Re: SBF Arrested by Bahamian Authorities

#231

Post by TheDong » Tue, Dec 13, 2022, 12:53 AM UTC

siftrics wrote: post #202

Say it with me: Blockchains mathematically prevent fraudulent misuse of deposits Yes, on/off ramps are an issue. Yes, blockchains do not prevent physical threats of violence or profound custodial negligence. No, SBF would not have been able to defraud millions of depositors on a blockchain where everyone self-custodied.

> Blockchains mathematically prevent fraudulent misuse of deposits

> SBF would not have been able to defraud millions of depositors on a blockchain where everyone self-custodied.

Does the TerraUSD count? People self-custodied, but the blockchain was built in such a way that it went to 0 easily enough.

Was that profound custodial negligence? It seems like blockchains that fail in such a way are a dime a dozen, and the end result doesn't seem vastly different from "$company running $TKN has gained a lot of money, and all the holders self-custodying $TKN have lost practically all their money even though $company assured them $TKN was safe". Is that any different in a useful way from "FTX has gained a lot of money, and all its customers have lost practically all their money which the company assured them was safe"?

Practically every crypto "pump and dump" follows this scheme of a custom token ('blockchain' if you will), a company saying it's not a pump and dump, and users self-custodying right until they lose all their money.

Perhaps blockchains prevent "fraudulent misuse of deposits", but enable "users exchange money for $TKN, which is definitely 100% worth something, and then it isn't", which really seems quite similar to me.

Re: SBF Arrested by Bahamian Authorities

#232

Post by klyrs » Tue, Dec 13, 2022, 12:53 AM UTC

from wrote: post #42

chinathrow wrote: post #21

Earlier quoted context omitted.

No, look forward and get Binance and the Tether guys.

What did Binance do wrong again? I don’t consider having faulty blockchain analysis software at a time (2018) when most blockchain analysis software wasn’t very good a crime. And the Iranians they supposedly aided all used VPNs and hid the fact that they were Iranian. I think the best the government will get out of Binance is a DPA but that’s just me.

They haven't been caught red-handed, but their reserve claims are highly suspect[1]. Predictions that Binance is next are pretty credible in my mind, and the DOJ is already looking[2] in that direction.

[1] https://mishtalk.com/economics/binances-alleged-crypto-audit...

[2] https://arstechnica.com/tech-policy/2022/12/doj-divided-over...

Re: SBF Arrested by Bahamian Authorities

#233

Post by andrewvc » Tue, Dec 13, 2022, 12:53 AM UTC

boplicity wrote: post #215

.

How do you know that he wasn’t capable of understanding those requirements? It seems just as possible that he consciously chose to ignore prudence in favor of easy profits.

In fact, it seems that he completely did understand the importance of things like separating customer funds between businesses given that FTX claimed to have rigorous procedures around this prior to their collapse. From the outside, it appears that he is trying to save his skin by pleading ignorance.

Re: SBF Arrested by Bahamian Authorities

#234

Post by mistersquid » Tue, Dec 13, 2022, 12:53 AM UTC

soheil wrote: post #130

How does NYT feel about interviewing him literally not more than two weeks ago and trying to frame him as a super smart kid making a dumb mistake?

> How does NYT feel about interviewing him literally not more than two weeks ago and trying to frame him as a super smart kid making a dumb mistake?

If you're referring to Andrew Ross Sorkin's interview of SBF, you're misreading the larger editorial framing of that interview.

The editorial intent was to get SBF talking and present, in public, evidence of whatever he did or did not do. The motivation of that interview was not to provide a platform for his exculpation.

Consider, for example, Fortune's analysis of that interview, which begins [0]

  > Where to begin? In a decade of covering crypto, I’ve seen a lot of
  > strange spectacles but nothing quite like Sam Bankman-Fried’s interview
  > at the New York Times DealBook Summit—a 45-minute display of delusion
  > and sociopathy in which the disgraced FTX founder whined, wheedled, and
  > did everything but acknowledge his responsibility for the financial
  > crime of the year.

[0] https://fortune.com/crypto/2022/12/01/sam-bankman-frieds-big...

Re: SBF Arrested by Bahamian Authorities

#235

Post by siftrics » Tue, Dec 13, 2022, 12:54 AM UTC

lvl102 wrote: post #224

siftrics wrote: post #202

Say it with me: Blockchains mathematically prevent fraudulent misuse of deposits Yes, on/off ramps are an issue. Yes, blockchains do not prevent physical threats of violence or profound custodial negligence. No, SBF would not have been able to defraud millions of depositors on a blockchain where everyone self-custodied.

Say it with me: Blockchains never had a chance. It was designed to be a ponzi from the start. If you took it as something more than that then the joke is on you.

Tell me specifically what is false about this statement:

Blockchains mathematically prevent fraudulent misuse of deposits

Re: SBF Arrested by Bahamian Authorities

#236

Post by smileysteve » Tue, Dec 13, 2022, 12:54 AM UTC

eddsh1994 wrote: post #147

rjbwork wrote: post #4

Much sooner than I expected. Figured it'd be a couple of years before the AG was secure enough in their case to bring charges. This is MUCH faster than Madoff or Holmes. Then again, he's been much more out in the open about everything. He pretty much laid the prosecution's case out to the public for them.

How is it faster than Madoff? And it's far more complex than Holmes.

Disagree about Holmes.

Seems the investors of FTX never asked for a detailed balance sheet. Companies that FTX bought out were often compensated with significant strings attached.

Holmes at Theranos was giving investors tours of it all working while doing it manually and with more blood behind a curtain.

Re: SBF Arrested by Bahamian Authorities

#237

Post by ceejayoz » Tue, Dec 13, 2022, 12:54 AM UTC

whaleofatw2022 wrote: post #137

dereg wrote: post #104

Earlier quoted context omitted.

It's clear Caroline Ellison has turned against him. Stephanie Avakian, former SEC enforcement chief, is representing her in NY. I'm guessing they wouldn't have been able to file charges this quickly without Caroline becoming a cooperating witness.

One would hope whatever she gave them is bulletproof. Cons gonna con...

I mean, it doesn’t hurt that he’s been publicly incriminating himself to anyone who will listen.

Re: SBF Arrested by Bahamian Authorities

#238

Post by DonHopkins » Tue, Dec 13, 2022, 12:54 AM UTC

siftrics wrote: post #202

Say it with me: Blockchains mathematically prevent fraudulent misuse of deposits Yes, on/off ramps are an issue. Yes, blockchains do not prevent physical threats of violence or profound custodial negligence. No, SBF would not have been able to defraud millions of depositors on a blockchain where everyone self-custodied.

No post body was provided.

Re: SBF Arrested by Bahamian Authorities

#239

Post by nailer » Tue, Dec 13, 2022, 12:54 AM UTC

jonas-w wrote: post #101

davidw wrote: post #47

Earlier quoted context omitted.

> Though I do wish he had testified and further incremented himself. SBF += 1;

... SBE SBF SC0 SC1 ...

> SC0

I knew this was Unixware’s fault.

Re: SBF Arrested by Bahamian Authorities

#240

Post by gautamcgoel » Tue, Dec 13, 2022, 12:55 AM UTC

This case will test whether the US is a country where bad deeds have bad consequences. Over the past decade I have become increasingly skeptical that our society is able to hold the wealthy and well-connected to account, but perhaps this case will prove me wrong.