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SBF Arrested by Bahamian Authorities

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Re: SBF Arrested by Bahamian Authorities

#651

Post by harambae »

jmyeet wrote: post #49

For those saying "what took so long?", this is incredibly quick. It's still quicker than I thought it would be. But it is an open-and-shut case. As soon as you steal custodial assets (meaning customer assets that you'r eholding in trust), it's game over. Additionally, the US claims jurisdiction on pretty much anything that touches the US financial system. It's how the US can exert pressure on, say, European banks (eg…

> I honestly expect him to spend the rest of his life in prison

Yeah a lot of people are saying this and citing Madoff for comparison. I guess we'll all wait 2 years and see, but I doubt he's getting this kind of time.

How similar can he make his story look to Nick Leeson's? He'll say he just got in over his head, tried to trade his way out of it, used funds he shouldn't have and lost in his gambles. Leeson got 6 1/2 and served 4. My prediction is SBF gets 11 and serves 7 or so.

Re: SBF Arrested by Bahamian Authorities

#652

Post by hn_throwaway_99 »

mikeyouse wrote: post #339
rootusrootus wrote: post #302

Earlier quoted context omitted.

Madoff got a long sentence, but lets not forget that 'legal experts' were predicting a pretty long sentence for Elizabeth Holmes, too, based on federal formulas. It's optimistic at this early stage to legitimately expect SBF to get life behind bars.

Holmes got 11 years in Federal prison for her first offense for financial crimes.. that is a long sentence. SBF obviously won’t get life behind bars, nor should he.

> SBF obviously won’t get life behind bars, nor should he.

Is it really that obvious? I know the Federal Sentencing Guidelines have some wiggle room and gray areas, but I do know for financial crimes the length of sentence is largely proportional to the amount of money involved - not linearly proportional, mind you, but given that around 8 billion was stolen, definitely seems like life is on the table.

That said, I agree with your "nor should he" statement. The money is gone, and SBF rotting in jail for the rest of his life isn't going to bring it back. I do think he deserves to spend a long, long time in jail, but will it really have any more significant deterrent effect if he gets out at, say, age 65 vs. dying in jail?

Re: SBF Arrested by Bahamian Authorities

#654

Post by braingenious »

siftrics wrote: post #243
TheDong wrote: post #231

Earlier quoted context omitted.

> 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…

How were deposits fraudulently misused on Terra? Sure, it blew up. We should totally criticize Terra for that. But it succeeded in preventing Do Kwon and everyone else in the entire world from fraudulently misusing deposits. You wrote valid criticism of blockchains, but you failed to state how SBF could have done what he did on a blockchain where everyone self-custodied.

> failed to state how SBF could have done what he did on a blockchain where everyone self-custodied.

GP also failed to state how blockchains prevent forest fires, herpes, war, racism or hiccups. There are an infinite number of things that have nothing to do with what factually happened around the FTX collapse.

Re: SBF Arrested by Bahamian Authorities

#655

Post by Mistletoe »

HideousKojima wrote: post #347
LarryMullins wrote: post #228

Earlier quoted context omitted.

Can they simultaneously criminally charge him and force him to testify before Congress without violating his 5th amendment rights? I think getting charged criminally does get him out of having to testify to Congress, or at least it should.

He can pleas the 5th to congress

He should have pleaded the fifth to all those self incriminating interviews he has been doing.

Re: SBF Arrested by Bahamian Authorities

#656

Post by dheera »

TuringNYC wrote: post #588
adasdasdas wrote: post #389

Earlier quoted context omitted.

FTX is a brokerage not a bank. Furthermore, banks have strict regulations on the kinds of loans they are allowed to give. Also, bank accounts are secured by FDIC.

>> FTX is a brokerage not a bank. Furthermore, banks have strict regulations on the kinds of loans they are allowed to give. Also, bank accounts are secured by FDIC. Also, banks have capital leverage ratios they need to abide by. FTX had no concept of leverage ratios or haircutting assets by liquidity.

> Also, banks have capital leverage ratios they need to abide by.

I mean yes, but it's just a band-aid for a shitty system in which they allow banks to lend money they don't have, so they needed some ratio to control the mess they created.

In in ideal system nobody lends money that isn't their own. Period.

Re: SBF Arrested by Bahamian Authorities

#657

Post by rippercushions »

notch656a wrote: post #636
alvah wrote: post #627

Earlier quoted context omitted.

What an awful take. Holmes' (male) co-founder got a longer sentence than she did, just for a start.

Quoted post unavailable.

C'mon, that's a bit rude, she's a sultry wood nymph after all.

https://www.reddit.com/r/OutOfTheLoop/comments/z00scd/whats_...

Re: SBF Arrested by Bahamian Authorities

#658

Post by hackerlight »

kelnos wrote: post #338

I remember reading here (on a previous article about FTX) a comment that said SBF had friends in the Bahamian government, or something like that, so no way he'd get extradited to the US. I found that... pretty funny... at the time, and seems like I was right. Why would the Bahamian government risk their relations with the US over someone like SBF? Kinda absurd...

The conspiracy theorists and professional cynics have been out in force. The reality of the situation is, SBF is so widely despised by the voting public that an example of him must be made, and any supposed power that SBF had through his political giving and connections was not close to enough.

Re: SBF Arrested by Bahamian Authorities

#659

Post by 65 »

woeirua wrote: post #262

This is good for Crypto. Seriously. Because SBF is probably going to help the US make their case against Binance and that will flush out all the bad actors. Many coins will go to zero. The entire ecosystem will wither and die, but if Crypto survives it will be because there is some fundamental value to it besides digital beanie babies.

And that fundamental value? Allowing a currency for people to sell drugs and other illegal goods online.

Re: SBF Arrested by Bahamian Authorities

#660

Post by xwdv »

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.

The Zoom calls he did where he pretty much confesses to defrauding customers didn’t help.

I hope this is a lesson to those who think they can just talk their way out of things. The moral arc of the universe is long, but it bends toward justice.

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