this post was submitted on 03 Nov 2023

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204

'Crypto King' Sam Bankman-Fried guilty of FTX fraud (www.bbc.co.uk)

submitted 2 years ago by Pips@lemmy.sdf.org to c/technology@lemmy.world

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[–] shortwavesurfer@monero.town 19 points 2 years ago

Basically a foregone conclusion. "Not your keys, not your crypto".

[–] fiat_lux@kbin.social 13 points 2 years ago (2 children)

I'll be very annoyed when he's probably just sentenced to ~~mansion~~ house arrest, but for now I'll accept this good news.

[+] Kyrgizion@lemmy.world 15 points 2 years ago* (last edited 10 months ago) (3 children)

[removed by mod]

[–] SmoothIsFast@citizensgaming.com 6 points 2 years ago (1 children)

He made the same mistake Madoff did

Also what the fuck are you talking about here? Madoff turned himself in because no one in the SEC would look at the DTCCs books. Not to mention his other fleece of payment for order flow is now an industry standard for almost all brokers and market makers.

[–] atrielienz@lemmy.world 3 points 2 years ago

I wouldn't say he's like Madoff. I would say he's like Elizabeth Holmes (the Theranos cunt).

[–] SmoothIsFast@citizensgaming.com 3 points 2 years ago

No he was creating free locates for market makers with tokenized securities that had no backing, that still haven't been resolved and the equity swap data that could also show more fruadelent uses of this shit keeps getting delayed by the ctfc. He's gonna get house arrest and nice service for his part in helping market makers fleece more people.

[–] fiat_lux@kbin.social 2 points 2 years ago (1 children)

Fair point, but maybe he's another one of these people who will get special considerations for information about larger companies that a government needs for evidence.

Who knows? I ought to stop cynically speculating, but the world is making it hard not to.

I do hope he's another Shkreli though, who annoyed the old money boomers with his ostentatious nouveau riche antics enough to become their poster-manchild for their "See? Bad things do (sometimes) happen to bad rich people!" campaigns.

[–] SmoothIsFast@citizensgaming.com 3 points 2 years ago (1 children)

Hate to break it to you, ftx's biggest scam was in tokenized securities still being traded today and being used as free locates for market makers without any real shares backing these things. Wall Street is so fucking corrupt its not even funny.

[–] fiat_lux@kbin.social 4 points 2 years ago

For sure. Which is one reason I expect house arrest is so likely. All it takes is for one of the major multiglobals to be in some scheme that the government has decided to crack down on, and there's your leverage in sentencing negotiation. It's why I've given up on the concept of rich people going to prison, there's always another fish they can offer up for frying, because billionaire social circles are tiny.

[–] lobut@lemmy.ca 4 points 2 years ago

I think it looks doubtful at this point.

His co-conspirators perhaps? However from what I've heard he won't because he didn't plead guilty and a few other things probably means it's coming down harder.

I ain't no lawyer, but I understand your sentiment. I'm still awaiting Trump to face some sort of consequence.

[–] JoShmoe@ani.social 3 points 2 years ago (1 children)

I didn’t know cryptocurrency had a king

[–] shasta@lemm.ee 14 points 2 years ago (1 children)

I didn't vote for him

[–] thejml@lemm.ee 8 points 2 years ago (1 children)

You don’t vote for kings!

[–] JoShmoe@ani.social 4 points 2 years ago

Well somebody did!

[–] autotldr@lemmings.world 2 points 2 years ago

This is the best summary I could come up with:

Sam Bankman-Fried, who once ran one of the world's biggest cryptocurrency exchanges, has been found guilty of fraud and money laundering at the end of a month-long trial in New York.

They presented evidence that Bankman-Fried's crypto trading firm Alameda Research received deposits on behalf of FTX customers from the early days of the exchange, when traditional banks were unwilling to let it open an account.

Instead of safeguarding those funds, as Bankman-Fried repeatedly pledged to do in public, he spent the money to repay Alameda lenders, buy property and make investments and political donations.

Bankman-Fried made the risky move of taking the stand in his own defence, hoping to convince jurors that prosecutors had failed to prove he acted with criminal intent.

Bankman-Fried defended the money transfers between his firms as "permissible" and testified that he was largely unaware of the financial hole described by his deputies until a few weeks before the FTX collapse last year.

Panorama explores the breakneck rise and sensational fall of Sam Bankman-Fried, the maths genius who set out to transform the world of crypto but ended up being its biggest loser.

The original article contains 573 words, the summary contains 188 words. Saved 67%. I'm a bot and I'm open source!

[–] Zuberi@lemmy.dbzer0.com 0 points 2 years ago

Can’t wait to see how the 1:1 GME tokens are resolved