Nobody Cares about Sam Bankman-Fried and FTX

[Beebo Brink]

Missed this last week: the prosecutors heard Bankman-Fried's cries for leniency...

Quite the list of crimes. Goes way beyond just financial fraud.

In their presentence submission, prosecutors described Bankman-Fried’s crimes as “one of the largest financial frauds in history, and what is likely the largest fraud in the last decade.”

“The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence,” they wrote.

They said his “unlawful political donations to over 300 politicians and political action groups, amounting to in excess of $100 million, is believed to be the largest-ever campaign finance offense.”

And they said his $150 million in bribes to Chinese government officials was one of the single largest by an individual.

“Even following FTX’s bankruptcy and his subsequent arrest, Bankman-Fried shirked responsibility, deflected blame to market events and other individuals, attempted to tamper with witnesses, and lied repeatedly under oath,” prosecutors said, citing his trial testimony.

 

[Free]

SBF repeatedly lied to get out of “supervillain” prison term, FTX CEO alleges

FTX CEO: “The harm was vast. The remorse is nonexistent.”…

arstechnica.com

The CEO of FTX Trading, John Ray, sent a letter to Judge Lewis Kaplan Wednesday to correct what he called "callously" and "demonstrably false" claims that disgraced FTX founder Sam Bankman-Fried made in hopes of receiving a lighter sentence for crimes including defrauding FTX customers.

In a sentencing memo, Bankman-Fried asked the court to drastically slash his prison sentence from what he considered a "grotesque" 110-year maximum to five to six years. Prosecutors have suggested the sentence should be between 40 and 50 years, but Bankman-Fried claimed such a sentence painted him as a "depraved supervillain," Bloomberg reported.

The lightest sentence was appropriate, Bankman-Fried claimed, because the "most reasonable estimate of loss" and "harm" to customers, lenders, and investors is "zero."

According to Ray, "Bankman-Fried continues to live a life of delusion." While Ray's team continues to work to recover funds lost, which has been estimated around $10 billion, the total amount of stakeholder claims filed is $23.6 quintillion dollars.

"One quintillion is one billion billions," Ray told Kaplan. "It is the number 1 followed by 18 zeros. The task of addressing filed claims and reducing them to their proper and 'allowed' amount is monumental. Mr. Bankman-Fried assumes this is a breeze. He is wrong, very wrong."

Holy guacamole...

 

[Essence Lumin]

While Ray's team continues to work to recover funds lost, which has been estimated around $10 billion, the total amount of stakeholder claims filed is $23.6 quintillion dollars.

Sam BF deserves whatever he gets but those stakeholder claims are ridiculous too. The total world gdp is about 100 trillion, so X10 makes a quadrillion and x another 1000 make a quintillion so 10000 x 23 the world's gdp.

 

[GoblinCampFollower]

The lightest sentence was appropriate, Bankman-Fried claimed, because the "most reasonable estimate of loss" and "harm" to customers, lenders, and investors is "zero."

Now that is just deeply delusional. Trying to claim that in court proceedings suggests he is dumb as hell but thinks everyone else is even dumber than him. ...it's understandable why he'd have that misconception given how dumb some of the people were who gave him so much money. He comes off as a dumb sociopath who got really lucky for a while.

...stakeholder claims filed is $23.6 quintillion dollars.

I'm not clear what this means. Who is claiming this? Does this mean his victims are claiming to have lost that much or is this coming from Fried? It wouldn't be surprising if this silly make believe number was coming from Fried, but would be really odd if victims had the audacity to lie that much.

 

[Free]

I'm not clear what this means. Who is claiming this?

The numbers are primarily based on losses in crypto values. It's just proof how delusional people involved with this shit really are.

 

[Casey Pelous]

The numbers are primarily based on losses in crypto values. It's just proof how delusional people involved with this shit really are.

I'd guess it is a whole bunch in the $500 to $50,000 range and 23 optimists in the quintillion range.

Filing ridiculously bogus claims seems right in line with the spirit of the enterprise, doesn't it?

 

[Katheryne Helendale]

"But... but... investing in crypto is supposed to make me really filthy stinking rich!"

 

[Veritable Quandry]

Sam Bankman-Fried sentenced to 25 years for defrauding FTX investors

He faced up to 110 years. Prosecutors argued for a sentence of 40 to 50 years, while Bankman-Fried's lawyers asked for six and a half years.

Sentences for white collar crimes have varied in recent years, from 150 years for Bernard Madoff to 11 years for Elizabeth Holmes.

The 32-year-old Bankman-Fried, in his final statement before the judge, said what happened at FTX "haunts me" and that "I made a lot of mistakes."

 

[Free]

Sam Bankman-Fried’s cellmate sentenced to 25 years stuck with guy who won’t shut up about crypto

 

[Free]

His legacy lives on.

Sam Bankman-Fried funded a group with racist ties. FTX wants its $5m back

Multiple events hosted at a historic former hotel in Berkeley, California, have brought together people from intellectual movements popular at the highest levels in Silicon Valley while platforming prominent people linked to scientific racism, the Guardian reveals.

But because of alleged financial ties between the non-profit that owns the building – Lightcone Infrastructure (Lightcone) – and jailed crypto mogul Sam Bankman-Fried, the administrators of FTX, Bankman-Fried’s failed crypto exchange, are demanding the return of almost $5m that new court filings allege were used to bankroll the purchase of the property.

During the last year, Lightcone and its director, Oliver Habryka, have made the $20m Lighthaven Campus available for conferences and workshops associated with the “longtermism”, “rationalism” and “effective altruism” (EA) communities, all of which often see empowering the tech sector, its elites and its beliefs as crucial to human survival in the far future.

At these events, movement influencers rub shoulders with startup founders and tech-funded San Francisco politicians – as well as people linked to eugenics and scientific racism.

 

[Free]

Possible good news for the people who were robbed by FTX.

FTX to pay $12.7B to victims of Sam Bankman-Fried’s massive scheme

US commodities trading agency claimed its largest recovery ever for FTX victims.

arstechnica.com

FTX, the bankrupt cryptocurrency exchange formerly helmed by fraudster Sam Bankman-Fried, has agreed to pay $12.7 billion to customers blindsided by Bankman-Fried's deceptions covering up FTX's flagrant misuse of customer funds.

In an order yesterday, US District Judge P. Kevin Castel said that FTX must pay $8.7 billion in restitution to victims of Bankman-Fried's fraudulent scheme, as well as disgorge another $4 billion in "gains received in connection with the violations" to further compensate customers who suffered significant losses.

According to Ian McGinley, the division of enforcement director for the Commodity Futures Trading Commission (CFTC), "this multi-billion-dollar recovery for victims" is "the largest such recovery in CFTC history." And the CFTC "achieved it with remarkable speed," McGinley boasted.

 

[Free]

She has to hand over 11 billion dollars. Do they want it all in 10s and 20s?

Former FTX Exec Caroline Ellison Sentenced to Two Years and Must Forfeit $11 Billion

The judge cited Ellison's extensive cooperation with prosecutors, who described her testimony as critical to convicting Sam Bankman-Fried.

gizmodo.com

A Manhattan federal judge on Tuesday handed down a two-year prison sentence to Caroline Ellison, who assisted one of the largest financial crimes in U.S. history while overseeing a trading firm connected to the FTX cryptocurrency exchange but then served as a key government witness in the trial of FTX founder Sam Bankman-Fried.

Ellison pleaded guilty to seven felony counts of conspiracy and fraud and the federal sentencing guidelines called for 110 years behind bars, but in handing down the much lighter sentence Judge Lewis Kaplan pointed to her complete cooperation with prosecutors and reliable testimony during Bankman-Fried’s trial. In addition to the prison time, Ellison was ordered to forfeit $11 billion, the same amount the court ordered Bankman-Fried to turn over.

“I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison,” Kaplan said, according to Bloomberg’s reports from inside the courtroom, going on to describe her as “vulnerable” and “exploited.”

 

[Khamon]

Will the twenty-two billion dollars be used for restitution or legal fees I wonder?

 

[Kamilah Hauptmann]

Will the twenty-two billion dollars be used for restitution or legal fees I wonder?

I think it was already used on cocaine.

 

[Free]

Oh, shit, sucking up to Trump could be an effective plan! Can we find tweets or emails or something from Sammy boy that slam Trump as a shit stain or brainless or anything like that?

Sam Bankman-Fried’s Parents Seeking Trump Crypto Pardon for Son

The same judge who jailed the fallen billionaire presided over Trump sex assault case.

www.thedailybeast.com

Shamed former crypto billionaire Sam Bankman-Fried hopes to secure a pardon from Donald Trump.

The parents of the FTX co-founder have reportedly met with lawyers and others close to the president seeking clemency for their son, who is serving a 25-year prison sentence for fraud.

Stanford Law School professors Joseph Bankman and Barbara Fried are “exploring” the possibilities of a Trump pardon, reports Bloomberg.

 

[GoblinCampFollower]

Oh, shit, sucking up to Trump could be an effective plan! Can we find tweets or emails or something from Sammy boy that slam Trump as a shit stain or brainless or anything like that?

Sam Bankman-Fried’s Parents Seeking Trump Crypto Pardon for Son

The same judge who jailed the fallen billionaire presided over Trump sex assault case.

www.thedailybeast.com

I'm sure LOTS of high profile criminals are hoping Trump will pardon them since he's so notoriously impulsive. Doesn't mean he'll actually do it though... They'd need to convince Trump there is something in it for him.