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Here's what we're waiting for, after what he's done. I guess everyone who's been a victim of FTX fall is now getting some justice.


News: FTX founder Sam Bankman-Fried arrested in the Bahamas after U.S. files criminal charges (https://www.cnbc.com/2022/12/12/ftx-founder-sam-bankman-fried-arrested-in-the-bahamas-after-us-files-criminal-charges.html)

Very surprising. There are a lot of hot issues right now in the cryptocurrency market.
I am curious now about the arrest of Sam Bankman-fried. Could this be a guarantee that users' funds on the FTX exchange will be refunded or given to the user back? The arrest of Sam Bankman-fried, could be a huge W for some people who lost their funds on the FTX exchange, but I am praying that these customers' funds must be given back to the customers.


Letter from Bahamas authority:
https://twitter.com/tier10k/status/1602446815772741632?s=20&t=Xem7rqopOmNnVbAnNKIM1w
https://i.imgur.com/8PCvK43.jpg

If I am perfectly honest I did had my doubts this day will come as the guy has donated too much money to important figures and he has probably the best lawyers that his money can afford him.

But at least this is a step on the right direction, as someone like him needs to face charges for what he did, still even if he is eventually found guilty from the charges that are brought against him this is not going to help people to recover all the money they lost, but at least it will bring them some justice.

Actually I wonder why SBF got arrested? is there any rule he broke? but I can't find any laws that he broke.

It's the risk if anyone leave their coins on centralized exchange and it's their right if they use customers money for investment or other thing to make more money, even banks did that. I believe they have a rule if they're not responsible to recover customers money when something bad happen, all centralized exchange have this rule. So it doesn't make sense for me if SBF go to jail just because this problem.

It won't be easy to get full refunds to all customers after a bankruptcy occurs. Maybe customers will get refund partially for their capital on the collapsed exchange but I am sure they will not get a full one. The leftover of collapsed exchange does not have enough money to fully refund all users.

Even refund happens, it would take very long time, maybe take years. We have an example of Mt. Gox exchange and years after the CEO was arrested, a lot of lawsuits, until now, that case has still been ended and customers who have lost money on Mt. Gox have yet received any refund.

actually this is a sad thing for the crypto world, who wants all of this to happen, everyone also doesn't want this to happen.
but this is reality, and justice must be upheld according to applicable law.
with this arrest, it gives knowledge that every crime will definitely be uncovered, and it will definitely smell wherever it runs.
so the conclusion is don't be a greedy person, and fall into the world of crime.

What funds? They were spending everything everywhere. Everyone will be lucky if they get a few pennies on the dollar. If there is even that much left.


For the most part he did not donate to people he donated to groups. And it's unclear how much money he has left.


Bank fraud, securities fraud, and a few others.

-Dave

SBF serving life is indeed extreme, his carelessness must have brought people to do weird things like committing suicide. Earlier, I thought the Bahamas Government wouldn't arrest him, but SBF moving around attending interviews with mainstream media was so awkward regarding the allegations on him. However, the Bahamas government delayed his arrest until US filed a crime against SBF. He should have been arrested immediately FTX collapsed, and extraditing him to US will harden the young billionaires case and time in prison. Do you think the Bahamas Government had their reasons for delaying his arrest? Because from the link OP provided SBF's lawyer accused the Bahamas authorities of working closely with SBF in shoving peoples money out of FTX to a private wallet owned by the Bahamas authorities.

When the Enron scam erupted, the next day the perpetrators are handcuffed.  But with FTX, it took a month, and was just arrested for trial.

I have some doubts that he is actually going to jail for this. He had paid politicians and his parents are with the people in the government. You can say, he is backed by a big crime family who had put DOJ inside thier pockets.

The time is coming when SBF would get a jail sentence for the many bad things he did or approved to have done in FTX...and his lawyer/s will do everything they can to minimize the jail terms. Just like Elizabeth Holmes of Theranos (https://www.businessinsider.com/theranos-founder-ceo-elizabeth-holmes-life-story-bio-2018-4), Sam will have to pay the many frauds he did and it does not matter to me if creditors will get the money owed to them but certainly they are entitled to get some as there are many asserts still left intact by FTX so it is a matter of legally liquidating them. Sam tried to make his name a little bit more acceptable with his interviews and with the mainstream media playing along...but the immense pressure coming from different directions for law enforcers to do what they should be doing has finally come to the arrest of the man...definitely no more the golden boy of the crypto industry he is now its Bernie Madoff  (https://www.investopedia.com/terms/b/bernard-madoff.asp)version.

I think it's rather the opposite. Too many big creditors lost their money trusting Sam, and that played a big part in making the arrest decision so quickly. As much as Sam hopes and plans for a new business that could justify him in the future, he will have to dream while in prison for a significant time. At least, I really want to believe it.

This is the news that everyone who has lost funds because of the actions of this crime has been waiting for on the FTX exchange, but what is more desirable for people who have suffered losses is not only to see SBF imprisoned but to be clear about their money, what percentage is the probability that they can get their money back , because even though SBF is in prison, it is possible that when the court later he will only get a light sentence which does not fulfill justice for those who are aggrieved

the enron scam had total different timeline
so charging SBF within a month of allegations/bankruptcy is actually very quick response.. in comparison

but for comparisons..

enron
by the beginning of November 2001. That month Enron attempted to avoid disaster by agreeing to be acquired by Dynegy. However, weeks later Dynegy backed out of the deal. On December 2, 2001, Enron filed for Chapter 11 bankruptcy protection.

On July 7, 2004, Lay was indicted by a grand jury in Houston, Texas, for his role in the company's failure.

The trial of Kenneth Lay and Jeffrey Skilling commenced on January 30, 2006, in Houston.

On May 25, 2006, Lay was found guilty on six counts of conspiracy and fraud by the jury. In a separate bench trial, Judge Lake ruled that Lay was guilty of four additional counts of fraud and making false statements. Sentencing was scheduled for September 11, 2006, and rescheduled for October 23, 2006

No. Swindling billions through a financial engineering racket whereby he misled investors with false accounting, manipulating the price of his shittoken etc. is not usually breaking any rules.

Next time you'd better read the story before writing things like that. Just read the article linked by the OP and you would have seen:

The money is used to fund political parties on a donation basis^[1], so there is absolutely no return I think. lol
Anyway I wonder if there are some people who didn't expect this arrest especially FTT token holders, however the next crash is imminent.

1. https://www.theguardian.com/technology/2022/nov/30/ftx-billionaire-sam-bankman-fried-dark-money-republicans

Today I became overjoyed to find out that SBF was arrested by Bahamian Authorities and that the United States Government was going to charge him with the serious crimes of money laundering, wire fraud, and securities fraud.
I think its strange that he was arrested the day before he was going to testify today and tomorrow. The timing for him to be arrested seems fishy if you ask me.  I have also read that SBF and FTX's inner circle had a secret group chat on the Signal app called 'Wirefraud'. The plot thickens in this turn of events.

If explained, there are many violations committed by the SBF. He uses user assets for investment and trading without thinking of a clear strategy going forward, fraud under the guise of crypto investment, conspiracy, wire fraud, money laundering, and few others. But it seems that he has hired a lawyer who is quite competent in cases like this, moreover we know that the parents of SBF are quite well-known figures in Stanford and the government, they certainly will not let their child get caught in a criminal case and as best they can they will pass the SBF of all the charges against him with the resources at their disposal.

It seems that SBF's case will be quite long and if we expect him to be charged with the maximum penalty, the chances of that happening are quite small.

Oh poor soul, and in his greatness he even said lately he will start another business to pay back the missing funds... How injust are these bad people... (/s)


Well, I don't know in what country you live in, but stealing tends to be illegal everywhere.
(Of course, you can look for DaveF post for more exact legal terms for it).


The authorities usually tend to obstruct one another, on purpose or by mistake. It doesn't even have to be yet another conspiracy theory for this...

This is truly a piece of good news, but never the news that would give justice to the victims of SBF's fraud. The perpetrator might be tried and jailed for so long for all I care, but will it bring back the money that has gone? The real justice is when this money is given back to those who invested with FTX, but I know that would not happen.

I hope more regulations could be put in place among the centralized exchange since they are within the reach of the world government. This is another justice that could be served to avoid the repetition of this ugly event!

I just think that he's just a pawn, and the real people behind him, got the money, imagine the time we waited for him to be arrested, the US government take time to make this actions which should had been done earlier, maybe they are also on the ropes, and they have no choice but to drop the hammer for the guy, but no matter what he is still responsible for the collapse.

They could not recover the funds because, as the investigation states, it was hacked, right? No more funds remain in the system, which will be a hassle for everyone. It will not be able to recover the funds, but somehow it will make a "good" feeling for those affected by the FTX. The void left in the heart isn't going to be enough for sure.

At least they are doing the right thing to get to the bottom and do something about what happened.

Finally, but this is little bit out of topic is Do Kwon arrested too after luna happened, and the second question is all the user fund still cant be withdraw it till this date. and just curious what happened if FTX doesn't have money to repay all the user and they declared to bankrupt already

While him finally getting arrested is a good news, people that got their money lost in FTX are still very far way from any justice. SBF paid shit load of money to both Democrats and Republicans and will have top lawyers defending him so I don't think that people should celebrate just yet.


Nope, Do Kwon is still on the run. Last news is that he is hiding in Serbia, according to Cointelegraph (https://cointelegraph.com/news/terra-co-founder-do-kwon-hiding-out-in-serbia-says-authorities) article.

The U.S. and the Bahamas have had an extradition treaty in place, so why would he stay there, if he was guilty?  With a net worth of nearly $17 billion, Sam Bankman-Friedman could have gone to any other place where the US does not have a extradition treaty?

Most of these guys are excellent entrepreneurs and financial gurus, but they lack basic business skills and how to manage a business. Karpeles did the same thing with Mt Gox.... and the whole thing collapsed.  ::)

Serving life would be extreme, but his punishment needs to be a serious one. I would say he deserves at least 20 fucking years in the can. (without a peep) Making him eat grilled cheese of the radiator would be a plus but should be optional.

This guy ripped people off. Many people lost their life savings because of him. He didn't know, he was careless, he was a kid etc these are all bullshit excuses.

When you commit a crime being stupid is not an excuse.

That's just the money that we are aware of, while real figure might be much higher. I mean, I hope for Elizabeth Holmes scenario, but you never know with these rich people.


Its even more surprising considering his parents are lawyers and professors at Stanford Law School. Or maybe that's the reason he was so cock sure, knowing that his mommy and daddy will get him out of any trouble.

I hope the arrest isn't for show only like when the off-camera SBF is living like a king with all the assistant and lavish living.


You sound conflicting  :D  Entrepreneur and financial gurus are knowledgeable about money flow so automatically the person is knowledgeable on how to run a business.  Don't misunderstood technical knowledge on Bitcoin and TA with running business.  Businessman maybe not knowledgeable on laws and regulation that is why they hire lawyer for it.

If someone wants to believe him after all, he stated in the first interview (https://bitcointalk.org/index.php?topic=5425222.0) that he only has about $100 000 left in his private bank account, and even that he has some other assets that can be seized and sold, I think that investors can hardly hope positive outcome in terms of compensation for damage.

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I would like to be wrong, but Bankman is not one of those who go to prison for a long time, and even if he is convicted, somehow it seems to me that he will receive a small sentence and accommodation in a prison that will seem more like a hotel. If you just take the example of our country and all the trials that were conducted and the people who were convicted, how many of them ended up in prison? The system always takes care of its people, I think it's the same anywhere in the world.

Depends if he takes some kind of plea deal I can see hum not getting a long sentence. He takes it to trial and drags it though the courts I can see him getting nailed to the wall in terms of time. As for 'Danbury Country Club" prison vs. a supermax. That's just the way it is. You don't need to put people who are not a danger to others and are a low escape risk in a facility that costs more to maintain in general and costs more per prisoner to operate then needed.

The issue becomes a plea deal can save everyone time and effort and money. We can argue over if they should exist and how they should be handled but in the end it is what it is. Also, keep in mind, it's not just the US other countries want him too so 1st he goes though the US justice system then others may want to get him. Which may be why certain things were expedited in an attempt to get him to the US. 1st come 1st served. Now every other country who was working on a case has to wait...

-Dave

What kind of business does SBF wants to go into in other for him to be able to pay back customers funds ? Who does he think he is fooling, he has list his trust that people have by doing away with their money.

FTX crash has wrecked some rich crypto investors who left major of their asset in his exchange and has also discourage some persons who left their coin in his exchange i.e this scammer SBF has done great harm to the cryptospace and he is still proud and say bla bla bla. After the law has caught up with him,he will know that life is not as easy as he thinks. He got arrested at the right time,he might be spending his Xmas in custody.

I hope that it will still be refunded, maybe it's impossible to return the whole thing for most users but at least there's should be a portion of it. It took them long before they put SBF in arrest. Well, they've got all the opportunity when he has attended conference where he's the speaker and didn't do anything with it.

That was one of the reasons that anyone has been thinking of as to why he's still not arrested. But just this day, it came all of sudden and surprised to see this news. Although not surprised really because many are waiting for it.

Too many things but as per the letter, Bahamas just cooperated with the request of US with the criminal charges that has been filed there against him.

This arrest shows that whoever wants to f*ck up with people's money, there will be a place for them and will experience the same thing.

Well, he's got all the right to defend himself and will surely get the best lawyers to protect and defend him against the cases that were filed to him. He's done wrong with too many people and he has to pay for it but still, the law will be fair to him even if we know the obvious.

It's just like a partial justice but still, there something that has been done against him so that people who have been hoping that there's an action sees that the authorities are working on it. If the money that he has embezzled will be returned to the people, I guess most of them will have nothing against him anymore as long as he returns it.

I didn't know that there's an activity prior to this arrest but we don't know what's with it and there's no need to go further with that as he's already been arrested.

He's not sorry for what he's done and not even remorseful with it. As if giving a solution and starting a business is too easy on him while the people that have entrusted him their money are struggling and unsure if their money will be back.

This is just some of justice and it's still incomplete. We want more and more satisfying ending on the end of the victims. With the incident, the government are going to be stricter with rules and policies towards these centralized exchanges.

Well, majority of us think that he's the big guy behind. But if he'll testify and will say that there are even more behind him and even powerful people then that's another case that will be opened if he's trying to save himself from all of the charges. Although, I don't think that he can alibi and run away from it, if so.

If there are still some remaining assets, cryptos and not. Those can be used to refund the money of the people but will that sustain the overall loss? I don't know. But hopefully, there will still be a lot of the victims that will take back their money even if it's not guaranteed.

1. Do Kwon is still roaming somewhere, a fugitive and hasn't been arrested yet.
2. He already forked it and got away with that problem, which is the same proposal as what SBF made.
3. There's nothing everyone can do with it, he's already run away with the money with his cronies.

It may not be near to the actual justice but it's good to see that there's the initiation to him. That's the sad part of it, with all of his "donations" to those big folks, we'll see if they'll come to save him on his tough times.

A skill that could have been used properly but him and his cronies didn't used it well but instead used it to take advantage of others. They've done fraud to people's money and if he's a genius he wouldn't done that in the first place, we'll just leave it to the authorities.

I hope so too but we can't just stop thinking of any other possibilities since he's like a big funder to the political parties in the US.

He thinks that any solution he's going to suggest will be likened by the massess. But it's not like that, many are so full of him as if it's not a big deal of what he did. And the fate has reciprocated to what he's done and favored the people. Still, this is a long way to go.

This is actually not good because he was supposed to give a statement to the committee to which the timing of this arrest is unbelievably perfect and that he will not be able to do it anymore instead. He is about to rat out the real people behind this scam after Caroline put it all on him.

I can tell by now that Caroline is a lot more influential than SBF. So we may be able to see SBF commit suicide.

He wont be in jail in the first moment i think,even after this "arrest"but I'm pretty sure like i said before that he will be made an example,regardless of bribes,people will just not want to be associated with him in the end,2023 is my bet for his sentence.

When I first heard about this news I was surprised although some people who are affected by the FTX collapse, etc may see it as a win situation but honestly, SBF arrest won't provide the user's funds. Besides, I somehow feel there's something fishy about the whole arrest because after he (SBF) was arrested the US prosecutors were planning to file criminal charges against CZ and Binance for sanction violation and money laundering.
I just hope people affected get their funds back but something is not right somewhere about this whole issue.

Same here, best case scenario is that he serves few years in a minimum security prison, with all the perks that entails.


I still get sick to my stomach every time I see news about Horvatincic being in some spa or whatever, while he should rot in jail for killing those poor people.


I think that him getting arrested and potentially spending few years in prisonpeople see like a 2nd best thing to getting their money. So that's why some are happy about it.

---

As expected,those publicly disclosed donations to political parties were not the only ones that SBF made. US prosecutors accused him of donating tens of millions of dollars illegally. Accusations are pilling up...


In the other news, looks like SBF bail was denied by Bahamas judge. https://twitter.com/ReutersLegal/status/1602784389250789376

I saw an interview with a former attorney of Bernie Madoff, who said that these charges are very serious and he's facing a maximum of 25 years, but will probably get much less because maximum sentences are rarely given. That doesn't mean he won't get any jail time, on the contrary.

The attorney also said that SBF is facing a number of conspiracy charges which means there's going to be more arrests of his co-conspirators.


He didn't choose the safest country to be in right now. There's an armed conflict brewing in Serbia.

Or possibly a he will be hidden but stay at his home, (can you call that house arrest?)


Political influence, money influence surely put more blindfold on the justice system.


I think these people though looking forward to get their fund back are slim are happy because they think that even though they can't get their money back, at least they can see SBF rot in jail.  (well that is if SBF is really put in jail)

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It looks like Bahamas state wanted to take custody of SBF to not leak the information of their "joint venture"[1] during the confusion of FTX collapse.

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[1] https://news.bitcoin.com/bahamian-government-officials-allegedly-asked-sbf-to-mint-millions-of-dollars-in-new-tokens-amid-the-ftx-collapse/

What a great twist of events coming from the FTX saga, but is the arrest of Sam Bankman-Fried legal and what law did he break?? Will this guarantee funds will be returned to clients that lost out, or this is one way this politically connected lad is getting whitelisted using the system...

Btw these investigations of crypto hacks are really a witch hunt which I wouldn't be surprised if it drags on for a very long time and possibly turn into some cold case, otherwise better than nothing give people some hope  ::)

Just what others mentioned above about on people being happy then some do really have that kind of thinking or impression that their money might really be given back but there are some who doesnt

really raise their hopes up and just really want to see SBF to be on those bars and would be paying on what he had done to the people specially into those FTX users.
Wondering on how many years he would be staying up on jail or would be he able to bail out?

I dont know but im not really that much happy or really that contented but well at least he got caught.

we can't say what will happen next, if he will indeed go to prison or bail out. i believe he wanted to be arrested because if he wanted to disappear, he can very well do that. maybe he has plans that we don't know about. hearings will take time, so his lawyers will already find a way how to get out of this situation. i am on the side that he can very well bail out from this situation. but we will see where this goes as they proceed with this case.

@AmoreJaz. He can bail out from custody of the government because his crime is only a white collar crime. However, what his sentence might be will not be known until a judge decides how long he stays in prison or if he goes in prison.

In any case, I am not quite certain where to share this news but it appears The Block cryptonews website might have received money from Sam Bankrupt-Fried. I am very disappointed in this.



The Block, a media company that says it covers crypto news independently, has been secretly funded for over a year with money funneled to The Block's CEO from the disgraced Sam Bankman-Fried's cryptocurrency trading firm, sources told Axios.

Source https://www.axios.com/2022/12/09/bankman-fried-funded-crypto-news-site-block

BAIL DENIED - staying in jail until Feb 8th
https://www.youtube.com/watch?v=DefoS4hlJQ4

Cowards do not raise their hands on themselves, and I don't think Bankman would ever have the strength to do something like that. Apart from that, regardless of everything that happened, I think that he has a very good chance of not getting hurt too much in the process.

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There are hundreds of such cases, some of which the public may never find out - but such cases are only proof that money can buy everything, even when it is more than clear who is the culprit and who is the victim. Bankman didn't kill anyone in the end, although I believe we will find out that some suicides are directly related to the collapse of his company - people unfortunately lost everything they had.

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There is no conflict there, do you think that Serbia would attack Kosovo, where the largest US military base in this part of Europe is located? What you read about somewhere has been happening for years, every time Serbian politicians want to draw the public's attention to other things. Kwon's choice is not as bad as some people think, in that country a man who has money can do whatever he wants, even if he is a criminal wanted by the whole world.

There are a lot of private jails in the US. Even if Sam Bankman-Fried really gets into jail, I think he will spend his sentence comfortably. 1000% he wont be spending his sentence with murderers, drug addicted or other dangerous criminals. He will spend several years with similar criminals, that committed financial crimes. Besides, Sams parents are not the last persons in the US. I am sure he will get help from them, shorter sentence and will get out ahead of time. And it all will end with him getting "easy" punishment and he by end he would say everyone that he had served sentence and is not guilty anymore.

Yeah good, that's what everyone wants to happen. Everyone wants justice.
This is also hoped for by New York Democrat Alexandria Ocasio-Cortez, who said:


https://talkimg.com/images/2023/05/16/blob20147c033c05b7e3.png

https://twitter.com/AOC/status/1602470171364712449

That's a good start, but let's hope the end is good too, because I heard a few days ago that Sam Bankman Fred hired Mark S. Cohen, Ghislaine Maxwell's defense attorney.


https://nypost.com/2022/12/07/ftxs-sam-bankman-fried-just-hired-ghislaine-maxwells-defense-attorney/

This lawyer, I think, has a dirty record and defends dishonest cases, so no one knows what the case will turn out to be.

I hope the end will be happy and justice will be served.

I still don't believe all of this until the court has a final verdict on him. I still suspect all of this was created just to satisfy the public because what he has done to the community is terrible. If they do not act, people will lose faith in the government as well as the law, so they will try to find some way to reassure public opinion and affirm that the law will punish everyone without exception. I also believe that SBF will not be punished too severely, let's continue to see how this drama will end.

You have point but they should have charged him to court, given some conditions and a time span to refund the loss of the people. Putting him in jail now may not give/allow him to have the right thinking and also do things that will make him refund the people their money since SBF is good in arbitrage trading.
@serjent05
Do you believe SBF will rot in jail when he purposely spends some of the money on political activities in the US so they could rub his back when he gets into trouble like this? He might even be at his apartment drinking coffee now.
I think what the people who lose their funds in the FTX issue needed right now is the jury putting SBF in the condition that will make him pay the money not jailing him which I believe is another way of them not making him refund the money.

@Oilacris
I read that his (SBF) bailout was rejected yesterday and for the years he will spend behind bars we don't know yet but I'm sure what common people that were affected by the FTX issue want is a refund of their loss.
I hope the jury do what will favor the common man.
@AmoreJaz
Yes, he can disappear if he wants but he will only make things worse for himself and his family. It is better he man up in this situation than disappearance. I also believe he has some plan and if he doesn't the lawyer he hired would have given him the best plan since he once won a case against the US SEC.

It will be another disaster, when SBF kills himself he will not be held accountable for his crimes anymore.
As you said, it will be difficult to recover the losses of FTX victims.

But does SBF still have other assets to be able to compensate the victims, and will the other perpetrators also be investigated in relation to this case?
I feel sorry for the many victims who have a lot of assets in FTX and whose losses still can't be recovered.

the new administrator of FTX (mr ray) is still investigating the inner workings of ftx. and trying to find all assets.

but so far Mr ray only has hands on about $1b of funds out of a possible $7-8b hole

there is the LedgerX platform which is solvent and can be sold.

as well
the 48 hours of filing bankruptcy. SBF and another employee moved out alot of FTT token and some other assets to a custody of the bahama authorities(and maybe his own wallet)

these FTT tokens are still being traded on other exchanges so they still have value. and SBF was 'hoping' it would be a nice collateral for the bahama authorities to hold as a possible repayment amount to victims should FTT go up in price enough to cover losses (of the FTX.com(international) customers)

though i doubt the ledgerX value + FTT bahama held tokens will amount to the missing $6-7b

Any misconduct must always be held accountable. It turns out that Sam Bankman will be brought to justice before the court. It is not known how the trial will turn out and whether he will be able to get out of the well-deserved punishment. Users who have lost money must be happy about this event, but will they be able to be happy about the return of their deposits. That is still unknown. Because it is also not known whether Sam Bankman will be able to fulfill his debt obligations and return the money to the FTX's users. As you know, transactions were made for very large amounts, sent in an unknown direction. Whether it will be possible to return them, again, is not known.

If Mr.Ray only has $1 billion in funds, of course, there is still quite a lot that must be replaced. But hopefully, more assets will be found.
SBF also definitely has more funds in the form of assets, all of that must be investigated.

Regarding the FTT token, it will only be a garbage token. Even though it looks like it's still being traded, the price is also not worth it and many are being delisted by several centralized exchanges. Hoping to go up, it's still a difficult thing. Many people no longer believe in the FTT token and think it's just trash like what happened to the LUNA Token.

It's going to be a pretty long case if FTX doesn't get the $6-7 billion to replace the hole.

That is often the case that happens for someone who is rich like for example when a politician is arrested. Later on there will be a follow up report on what they are doing inside the cell and the public will see how good their life is.

I think the same thing can also happen with SBF even though it is known that his company have bankrupt but we never know what if he already hide some money before for his personal use. He also helped some government financially so this guy have some special treatment. SBF is obviously knowledgeable and knows how to manage a business because if not then he won't grow his company but the problem is he got greedy. That is why his empire collapsed.

value at post today of the 195,869,337 FTT transfer last month is today $274m
so yea not really worth even trying to sell as just selling off that amount would crash the market and make them worth less than that to cash out..

days/weeks before his arrest SBF was hoping  that FTT would ATH again at a 20x of transfer dated price ($400m) to make value of assets in bahama custody $8b

of course it wont happen even at a 30x of today to get a $8b  value of the 195m coins.. that still wont net the bahama gov $8b because as soon as they sale them it would crash the ATH

I even imagine SBF being treated as a VIP in his cellar or maybe he is already in his house playing games.  Whatever, I think he is being taken care of.

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Yeah, money is the most powerful ally in this corrupt government.  Even influential politicians bow down to money and the blindfolded justice system even doubles its blindfold if money waves.  Even though there are lots of people who lose money, the corrupt official doesn't care as long as they are fed with what they wanted - money.

i dont think SBF will be given an 'epstien neck tie'
epstein had no kids or wife or parents to care about him.

SBF has devoted parents. so SBF will do deals to reduce/avoid his sentence

It's a good thing he was arrested so that others know they can't skip after committing a crime on crypto. Unfortunately, users are unlikely to receive their funds back. Because in the past, we have very rarely seen end users benefit from such an incident. Arresting a criminal does not guarantee that the funds will be recovered. A thorough investigation into where the funds were moved is required. I hope the positive and end users get justice.

not complete, in full
but the current administrator (ceo) has found atleast $1b of the $8bill hole. so expect at most so far 10cent on the dollar after lawyer/admin syphons, oops i mean consultation fees

oh and also expect the gratuitous "for the benefit of maximising returns" 3-4 year delay of waiting for the next halving cycle before pay out.. to have the values in dollar amounts multiply to then maximise returns

I'm not sure if this will help the people to recover their loss, but I don't think the govs care about this because people were making a high-risk investment, so, maybe for them is all gone and this jail move is to bring some justice and prove how there are huge consequences on crypto scams.

This time was a half-win for the justice, now let's hope to see soon a recover plan for the investors.

The Government has done what has been long awaited of them to do since after FTX collapse, the government through the security and exchange commission bring and arrest Sam bank Man Fried to answer some question and face the law because no one is above the law.
The Sec need to step up their games in protecting every investor out there without this kind of delays in the future.

In general this is good for the entire crypto industry, and also will bring confidence to investors that invested in FXT and other cryptos that judgment is finally in.

But this time he is fighting people around the world who are demanding justice. Everyone was watching, and it was enough to risk the reputation of the court if the decision was judged to be a mitigating sentence for SBF.

By the way, the maximum sentence preference for SBF is already known. Young enough to live the rest of life in prison.

"It's the risk if anyone leave their coins on centralized exchange and it's their right if they use customers money for investment or other thing to make more money, even banks did that" .. actually banks DO that.  It's called fractional reserve banking and the great crash of 2008 proved how and why this can be a very dangerous proposition.  SBF is yet another example of why this practice should be minimized. 

The guys also did countless amounts of lying and deceiving, so it's not like he didn't do anything wrong, because he certainly did. 

That's very surprising and also good news that because the people who are fraud and also SBF made whole Market crash. He got so much money from investors and also than just Scammed with them. Now he is arrested and it is a lesson for those who cheat at a big level. And that's why these types of people should be punished. I think that if this man was in another country rather than IS, Than he might not have be caught.

Either he gets away from this because he had people paid from government position or he still gets punished only with a slap on the wrist. Twitter is a warzone with this news.  ;D

But there were also people like the activist Alexandria Ocasio-Cortez (AOC) asking about the timing of the SBF arrest. If something could happen, since a conspiracy theorist already sees SBF as the fall guy, SBF could just die unexpectedly. And then there's Kevin blaming Binance the cause of the FTX collapse is on the way also. CZ intentionally put FTX out of business  ;D

The beginning of justice for a thief, The man who took 1 million people's life savings
But there are still others who are just as guilty as the SBF, the celebrities that endorsed FTX, and all the politicians who accept their bribes should also be arrested.
This rabbit hole is deep. Dark money must be investigated!

I hope all the criminal activity is exposed, whether it's one side or both sides

I don't understand why there are those who think that with the arrest of Sam Bankman-Fried, victims of his shenanigans can get their money back. The answer is a big NO. The money had been mismanaged, squandered and of course, used in trading where they lost. Nobody can be sure when the assets left will eventually be distributed to those entitled of them under the bankruptcy law...and yes it can take years before that will eventually be settled. Remember Mt Gox, for that matter. The most important is that perpetrators (with 's' because Sam is not alone in this mess) can be brought to jussive and be facing a jail time so they can be big examples to all and be a big warning especially in the crypto industry where scammers and hackers are now making their number 1 home and source of huge revenues.

I don't think that people who have lost the money will get it back because they probably have invested or spend them in various purposes but atleast the authorities should take action against him and this is one of them like putting him behind the bars.He just seems to be normal guy but was running this scam from years which got busted and he is charged with illegal fund transfers and other charges.People will not get funds back but the culprits should be punished for it but we all know the treatment he's going to get in Jail also with the backup funds he have but still in prison.

I'm actually not surprised by the arrest of SBF because basically the government deserves to do it after the FTX debacle. But I am grateful that SBF will be tried and held accountable for its actions which have cost investors billions of dollars. Of course this is good news, but I doubt the lost investor funds will be returned in the end.

I know jailing SBF isn't going to heal everyone's wounds, but at least that's what the government should do to anyone who scam people. It will be interesting how this case is followed up, I hope this becomes something that can restore people's trust in crypto.

That's what they are worried about right now and to have him in jail, means they can question him and let to do everything to get their money back even though it's not fully refunded anymore. at least they can get some rather than they gonna let him free and only give their promise which is more likely becomes a false promise because there will be no way for him to get their money back but to use all of his assets to pay all of them some of their shares. That's just how bad things fell on him this year and it would be great for him to spend his life in jail because he might not be safe outside anymore.

Are you serious? Billions of dollars were stolen and only one person was arrested.
Sam bank Man Fried is arrested for only one reason, he has been talking too much lately and giving interviews. And so that he would not say too much, he was put in jail. And anything can happen to him.

The chances of getting back  the money are too low right? So i am sure there are really people want to threat him or anything can happen to him as most of the people are angry to him so definitely they have contact to hurt him but again it is useless as the money is already gone and not sure if it can be recovered.  So you have speculations that the mastermind on this is a group? and just he is the leader? I havent really followed this but it has possibility as it is a big amount of money.

well

~$1.2b of $8b
about 15% at most so far

call it 10cents on the dollar at most after lawyers and consultants fees

in other related news
kevin oh weary(i mean o'leary)
https://youtu.be/uK7QXlgtbdg?t=15
is trying to suggest that when binance seen bad practices by SBF and requested a refund  and got a refund. kevin is suggesting that binance stole the funds that made everyone else insolvent
(facepalm) shameless guy.

if he is ok with making accusations then he should start closer to home with his best friends SBF

Are you are trying to say that SBF is not responsible for all that FTX drama and his "I dont know", "I wasnt aware of that" is true in multiple interviews? It is really hard to believe FTX founder was so irresponsible and did not know what his "child" is doing with all that money. Ok, lets suppose he is innocent. Then where all the money have gone ? They did not disappear in a second. It was a long process, and it is hard to believe that SBF did not hear anything about such huge money flows in his campaign.

doesn't sound like him when you are used to watching the shark tank. he is paid to speak for FTX. nothing more to expect from him but already pointing finger to binance. its now who's the bad guy and the good guy.  he highlighted binance monopolizing the crypto market like binance needs to be seized.

you can already tell in his mind that because ftx collapsed, everybody else has to collapse.

of the exchanges..

i find that DCG was invested(ownership claim) in FTX and had contagion. and its sister company greyscale is offering shares. but wont disclose the reserves.. because those reserves are held up in coinbase and coinbase wont reveal the reserves to public not greyscale..

i see DCG being a "bigger risk"

binance has 25m customers. but coinbase has over 60m customers.

seems o'weary is stil a spokesman for "some company" because he is still sounding like he has allegiances even though his ftx employment contract should have expired the moment ftx lost o'leary his own funds

According to O'Leary Binance is responsible for FTX collapse and Sam was doing good. Sam wasn't stealing money, Sam wasn't in debt. They were trying to make deals and get permits but Binance was working against them all the time to undermine their efforts and without CZ dumping FTT there wouldn't be any bankruptcy. He also thinks that Binance should be regulated in the US because it's running wild without any supervision.

Poor Sam, he was a good guy after all. All those properties he bought for himself and his parents, all the donations, 15m given to Kevin for his support, 1B USD given as a loan to his friend... Such a noble man and such a great CEO!

You probably misunderstood him. He didn't mean that he doesn't believe that SBF is guilty until the verdict, but instead that he doesn't believe this arrest is real and that all this has done for public sake, to appear that they are doing something. I don't think that all this is just show for public, but I also don't think that he will get  a long sentence either.


Saw it yesterday, really disgusting guy. I guess its easier for his ego to think that someone else is guilty for FTX downfall and not his buddy SBF. Imagine, an experienced investor like himself got scammed by some geek. No way, its someone else's fault.

Based on experience in my country with several hype investment cases, chance getting back our money or refund impossible because all scammer assets confiscated by government and not publish yet transparent where is the flow of money from confiscation. I think FTX exchange money user faced the same cases and less possibility get refund back our money in FTX exchange account.

You can comparison with MtGox after have rumor about the hacker under arrest and all Bitcoin stolen success get back, but still not exact date issues or rumor when the member of MtGox Bitcoin fund refunding.

To be honest, I am pleasantly surprised. I know that the system of Justice is alright in the US, but it still has its major downsides (like the Trump-appointed conservative juries of the highest court), and I thought a capitalist state like the USA would protect its riches, especially if they did their paperwork in time. Apparently, I was wrong, and there is some justice after all. I don't care if he gets prison time (and I don't generally believe in prisons as a proper way of making society better), but I really hope that the victims will be reimbursed upon liquidation of FTX assets and, if that isn't enough, from Bankman's own big pocket.

Who exactly is the puppeteer of SBF? We're all waiting.

And please don't mention "World Economic Forum" - thats usually a catch-all people use when they don't have other hints

The truth is that this guy is really immature and doesn't know how to run a billion-dollar company properly.


I think you forgot to put an /s at the end.

Hehehe Sam kills himself in prison? It would certainly be similar to how Jeffrey Epstein also killed himself in prison. I am sure this would open up new storylines and conspiracy theories on what Sam's connection really is with the Democratic party and how FTX and Alameda Research came to be one of the top exchanges and top market makers in a very short amount of time.

I will say it first be before it happens. Sam did not kill himself.

No, Sam was arrested because the US government filed a criminal complaint against him. But now he is being held in the Bahamas, according to some reports, the Bahamas government has refused a US request to extradite him to the US for trial.

As for the compensation for the victims, I think they have no chance, recently, the new CEO of FTX, Mr. RAY, has also confirmed that 1 million FTX customers will not get their money back and will not be compensated. Only victims in the US will be compensated.

A very pleasant news indeed. I have been hoping to see this happened, and now it has finally happened.
At least, someone should be held responsible for with happened at FTX and not just allow the issue to slide, it will encourage more fraudulent activities within the cryptocurrency space.
 He should be made to face the full weight of the law and most importantly made to return investors money that varnished into thin air.

1 yes         2 yes            
3 no - the trial to decide on extradition is in february. the other day he was in court about bail. and was denied bail
4. there are some funds but no confirmation of how it will be split.
5 no again. not decided yet. it will take weeks,months to accrue all assets then asses how to split the funds

---

possible reasons o'leary said what he said
(speculating/hypothecating)
a. to not pro-spin SBF voids his speaker contract. penalty repay SBF $15m
b. if he admits to a scam. it makes him liable for advertising a scam
c. admitting he was duped puts him in bad rep of not doing due diligence
d. to go against SBF means $0 return, not even 10c on the dollar

im feeling b & c as main reasons

---

i dont think SBF will wear a custom design epstien neck tie

Sam is not like Epstein and does not have a wealthy network of friends to protect or sympathize with him.

Pretty much everybody is going after Sam. That's what happens when you screw over millions of people (including rich investors) worldwide. This is no pedo operation where there are only a few girls seeking justice.

Nobody's gonna give him a way "out".

Epstein infiltrated a lot of people in high places where he could possibly extort knowing that him exposing them can ruin thier political careers and reputation. But I think SBF connection to DEM and REPs are already enough to get him killed and probably by now the Bahamian connection is taking all his assets.

When CZ asked about the records, they can't supply them, and then Mr wonderful Kevin accused Binance of having caused the bankruptcy of FTX just going nuts. Despite how absurd that is, they are going to get CZ.

Killing someone and making it obvious like Epstein is not that easy. I mean not the act itself, if government wants someone dead then they can do it in 5 minutes, the act is easy. The idea of it is hard though, like how they killed Epstein and we are still talking about it today.

He was friends with everyone too, like the names of both Bill Clinton and Trump both appears, which shows that Epstein was siding with both parties. I believe that SBF situation is different, they wouldn't want him to speak the truth for sure, but they wouldn't really care enough to kill him and get that headache as well, he doesn't have anything that worths it, some bribery charges at worst.

I do not believe that there is a higher power behind SBF to be honest, however I could also say that if there were any, I would guess that it would be more like a partnership and not something he did for others. How? Well, simply they could pay the dems or reps and one of them would defend him and he would be able to do whatever he wants and that way both would benefit. So I steal money, share it with you and you do not put me in jail, sounds good?

I mean that's a possibility in most cases, and I am sure MANY wall street people do this literally every single day. Only difference is, SBF looks like a moron who couldn2t pull this off in the long run for sure.

May be he is arrested because he is running his mouth in the media and the democrats wants to restrict him because he is saying things that might indicative him in the court of law while the general media is trying to save him with a narrative they created. If you are looking for justice he needs to be punished and everyone that lost their money should be compensated.

We cannot be quite certain of this anymore because it appears that Sam's mother is very much connected to the politicians and the financers of the Democratic party. There are speculations that FTX and Alameda were created to be a moneylaundering operation for a certain group of people.

There was also a theory that implied that the aid the American government sent to Ukraine were laundered through FTX and sent to the Democratic party to use for the midterm election. This was denied by the government and the Democratic party, however, I would not be shocked if there was some truth in this.

We might know more when the trial begins or we might not. There are also speculations that Alameda CEO Caroline Ellison has began talking to the feds.



Following the arrest of the former FTX boss Sam Bankman-Fried (SBF), spectators continue to wonder where ex-Alameda Research CEO Caroline Ellison is, and whether or not she turned on SBF. A few reports suggest Ellison is “likely working with feds” and it’s possibly the reason why Ellison was reportedly spotted at the Ground Support cafe in Soho.

Source https://news.bitcoin.com/reports-suggest-caroline-ellison-is-working-with-feds-and-snitching-on-ftx-co-founder-bankman-fried/

I would say that this case is something I have been following and have so much interest in knowing the outcome. This is because of its complex nature. We know his political donations. He has deep ties with big players, and we'll see if he will be charged successfully. Imagine that he was arrested the day before he was due to give testimony to Congress. Why? Who was he going to incriminate? But one of my concerns is that this case may soon be forgotten by the public because we are quick to move on to something else.

I doubt the media will let people forget about this case as I am sure there are many governments which will use this case to pass regulations against exchanges and this market in general.

And in order to give themselves the perfect excuse to do it they need to have this case fresh in the minds of the people, as only in this way they can justify their actions and make it seem not as an attempt to try to slowdown this market but as an attempt to protect small investors.

Recently, the SBF is said to have agreed to accept extradition to the US after many refusals by the Bahamas government. If he is extradited to the US and tried then he will face more charges and penalties from the SEC and CFTC, but if he comes back to the US, there will also be benefits for him because he has close ties with politicians. Until now, I still believe that he will not be sentenced too harshly, he will be released soon.

This is certain, investors will quickly forget, just give them a small rally in the market, and they will quickly forget about the losses or accidents they have had in the past. Even though they lose a lot, their goal is still profit, and market makers know it, it won't be too difficult to make them forget everything and start a new game.

well it was give up the extradition fight. or stay in bahama jail till february to then get the chance to fight it. which could be a 4 year court case, just on extradition battle.. so i think he's preferring a US jail and just get it over with.. maybe the US jail has vegan options



well i think the multiple charges are not because they already have soo much evidence for a quick conviction.
even the new CEO/administrator is still trying to piece everything together and said it will take months to get a clear picture of the records and what actually happened

but they done a broad range of charges to cover any/all possible crimes.. and slowly wilt them down to 1-2 primary charges that can stick. (and then give max penalty for those primary crimes)
but lets hope they can over the next couple months gather evidence to have more then 1-2 crimes to stick

Hehe yes. Also, being in a very warm climate, the high humidity and a jail cell full of Bahamians sweating beside him while he sleeps will certainly not be very comfortable.

In any case, this might also be part of their plan. Sam has hired one of the best lawyers to represent him, Mark Cohen. He prosecuted El Chapo and presently also the lawyer of Ghislaine Maxwell, the partner of Jeffrey Epstein in his sex trafficking business.

LOL, this image is funny but on point.

It is one of the most awaited even that many have been hopeful for and then it has come into fruition and he's now in jail. It's not yet full justice for all of the people that have been a victim of him and there's more to it.

I only think of one thing and that is because he's accountable for what happened to FTX and its customers money. That's why he has to be arrested, actually it's been long overdue but still it happened.

Yeah, the time will come that this case will be forgotten. But I think that it will only forgotten when there's already the verdict and he's sentenced based on the fraud that he's made against these innocent people's money.

Right now, based on this source[1], he's already in the US - in the custody of FBI. He sure to face more cases and consequences if he gets the trial in the US.

[1] https://twitter.com/davidgura/status/1605750225032847360?

Look at this update guys. The other involved people, Caroline and Gary are now charged with fraud just like the arrest - this should have been done long time ago.

https://i.imgur.com/eRFdkL5.png (https://twitter.com/davidgura/status/1605750225032847360?)

Just found out that this maggot has consented to extradition which is good to hear since he is going to get screwed in more ways than one once he reaches US shores which is well deserved karma.

I am pretty confident that he won't live much longer and will end up just like Epstein, McAfee etc for obvious reasons.

Good news for us and bad news for him has also been revealed to be his accomplice, FTX co-founders and CEOs of Alameda are Gary Wang and Caroline Ellison, both of whom have admitted to their scams. I would love to know his expression when he hears this news.
I used to think that the SBF would get away with this sentence because of what he did to the politicians, but now I have a different belief. He should go to jail and be punished appropriately, even though it is tough for investors to get their money back.

https://i.imgur.com/LpR1TKZ.png
https://www.cnbc.com/2022/12/22/ftxs-gary-wang-alamedas-caroline-ellison-plead-guilty-to-federal-charges-cooperating-with-prosecutors.html

with her pleading guilty, all she has to do is act as witness to say SBF is the mastermind. instant judgement against SBF

if she was not a key holder and SBF was.(which seems to be whats being said by current CEO) then SBF is double screwed.

as he should be

As expected Caroline Ellison wanted to lighten her sentence and most probably he will point all the blame to SBF.  I believe with lots of news and rumors saying that Caroline is cooperating with FBI, there is no doubt that she will be considered one of the state witnesses against SBF.   I always thought that Caroline is just a figurehead of Alameda and that the real person behind it is SBF.  You can get a hint during Caroline's interview and videos before the FTX collapse.

the evidence from wang would also be interesting

the current ceo (ray) has seen that the co-mingled funds needed SBF and wang to be involved in moving the funds becasue he said they were involved in moving funds to bahamas authorities on the last day of operating (the supposed we been hacked)

so eang as co-signer will have alot of proof that SBF was involved in alot of coin movements

This was both good and bad for the users though. It at least puts the spotlight on SBF and he has to prove his innocence now, instead of having any type of law where they would need to provide his guilt, now the ball on his court and he has to provide that he wasn't guilty.

I believe that we should be waiting for a response and maybe we would get a solution to his situation and this whole deal, but it could also mean that the defence will drag this a lot longer as well we have no idea. The best thing we could do right now would be making sure that we have all the details, and right ones instead of just blames, but lets not hold our breath about finding a solution just yet.

(I just heard from some unverified sources that SBF got $250M bail).

The winner of this whole FTX and Alameda comedy show is Sam Trabucco, the former CEO of Alameda. He resigned with good timing, only 3 months before the collapse hehehe. In any case, the skeptical me thinks that there might be more on this. He might either have very good timing skills or he might be an informant? I leave this decision to you.