FTX Founder Samuel Bankman-Fried Arrested/General Crypto Scams Thread
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In the latest episode of the United Hour Podcast, Nik (@Rood) and Imran (@Annihilate Now!) are here to discuss three 1-1 draws.
The first got us knocked out of the FA Cup, the next puts us in a good position in our Round of 16 Europa League game, and the latest was an actual decent performance against Arsenal at Old Trafford.
All hopes for the season now rest on the Europa League - does Amorim have the squad to win it?
I am no expert but I've seen movies, most of these bullet points apply to a great many prisons in the US at least, I'd guess.
Both his parents are law professors at Stanford and he has a degree from MIT. How did he manage to mess up so badly?
I thought the idea about crypto was that they're far from the government reach?
he incorporated a company, held bank accounts, bought assets, had employees, and handled client funds which were deposited from real money bank accounts (which he also stole)..
he couldn’t be closer to government reach
Because being educated doesn't make you wise. It can make you arrogant though.
Greed and wrong upbringing I only guess. Smart people sometimes think they are too good to get away with things. So happy he got caught and may this be lesson to others.
Wonder how much longer this’ll be the case.
To be fair i think that applies to the majority of prisons in the world.
To be fair he got away to the Bahamas didn't he? I dont know they had extradition deal.
I was not aware of that too but I guess he had poor counsel on it. People like him probably surround themselves with advice that is inline with their own thinking!
Oh. That's honestly new to me, I thought it's one of the safe havens like the Cayman
The Cayman Islands also have an extradition treaty with the US. It is a tax haven, though.
I suspect that’s the case. Pure arrogance. He figured he’d cracked the system and then that he’d become powerful enough to be untouchable.
He was clearly very clued up to get FTX to that stage, and any interviews with him prior confirm that. Since then it’s turned out he’s not the humble nerd he made out.
In terms of people having said FTX was safe. There’s risk involved every step of the way and mitigating that risk is the key. FTX painted a very legit picture so it’s not surprising people placed their bets on it not imploding. It’s pretty insane that someone was prepared to risk tanking everything they’d built for more money than they’d ever need, but also not that surprising at the same time if they’re as arrogant as SBF seems to be. Hope he gets what’s coming to him.
I have recently learnt that strong academics dont guarantee someone is going to be good at their job.
https://www.theguardian.com/business/2022/dec/21/sam-bankman-fried-ftx-associates-plead-guilty-fraud
Two associates of Sam Bankman-Fried plead guilty to fraud charges in FTX fall
Carolyn Ellison, former CEO of Alameda Research, and Gary Wong, co-founder of FTX, pleaded guilty to criminal fraud charges
The guilty pleas were announced as Bankman-Fried was being flown to the US from the Bahamas by US law enforcement to answer to charges tied to his role in FTX’s failure.
Two associates of Sam Bankman-Fried plead guilty to fraud charges in FTX fall
Carolyn Ellison, former CEO of Alameda Research, and Gary Wong, co-founder of FTX, pleaded guilty to criminal fraud charges
The guilty pleas were announced as Bankman-Fried was being flown to the US from the Bahamas by US law enforcement to answer to charges tied to his role in FTX’s failure.
Can we just say crypto is a scam generally?
He is how I imagine a virgin WoW classic player on a dead server who spams "Thunderfury Blessed Blade of Windseeker" in trade chat, with crumbs all over his shirt and pee bottles beneath his desk look like.
It is always helpful to have as parents two law professors... We are not all equal.
https://www.bbc.com/news/business-64068810
FTX founder released to parents on $250m bail
https://www.bbc.com/news/business-64068810
FTX founder released to parents on $250m bail
Did they arrest him while he was auditioning for a role in Star Wars?
Yes, but it's the sort of scam that will come back in new forms, like sub-prime mortgages probably will.
you can but it makes no sense
scams are built using crypto just like scams are carried out in USD
is USD a scam?
are credit cards a scam? there is a lot of credit card fraud as well
Trading bits of paper for TVs and stuff sounds like a scam!
Why would Stanford sack them? You can't sack people for law breaking they had nothing to do with.
I never said they'd sack them.
So why would they no longer be there?
I'm not sure how these institutions work but if the board or whatever Universities have thinks it might damage their reputation you never know what might happen. Sacking would be difficult, costly and further harm Stanford's reputation so they may be offered early retirement to quietly move them out of the picture.*
*purely speculative, of course.
I guess but I'd want to be careful around law professors if I were Stanford.
definitely.I do think crypto as a concept itself is a fraud. Cryptos are just of unlimited supply so their long-term value is essentially zero, but people try to fool people into believing that Cryptos are of limited supply hence protect value of their assets
what so you think there is unlimited bitcoin but we’ve all been duped?
I don’t think I believe you
you can create bitcoin 2.0, 3.0 (doge coin, ethereum...) and so on with almost no efforts. crpyto is worse then legal tender. states can irresponsibly issue currency, though they (those countries' people) would face inflation as a consequence.
the "issuers" of crypto can issue currency at virtually zero costs as they will.
Well USD frauds are insured against by the state/regulation so not really comparable.
so all fraud is insured now? thats great!
Well, it's a crime for one. Regulations exist which enable recompense.
Example; last month my mother got scammed for £8k. Reported it, gave the information to the bank and the fraud squad. Three weeks later, money is returned.
If she had sent crypto rather than fiat, she ain't getting that back.
i know but loads of fraud and crime exists in fiat currency which isn't insured so its a moot point as you know
because a currency or technology isn't a scam, how its used is
Fair
Yes but they are tax law professors and not compliance professor as some "fish" was promoting it for a long time.