Sam Bankman-Fried has been released on bail

[dubst4r]

Former FTX CEO Sam Bankman-Fried has been released on bail after appearing in U.S. federal court in New York on Thursday. Bankman-Fried was told he can live with his parents on $250 million bail secured in part by their Palo Alto, California, house. His release also includes a long list of requirements for him to remain free while he faces charges. He's not allowed to make financial transactions of more than $1,000, can't open new lines of credit, can't leave the house except to exercise and must go through substance abuse and mental health treatment, according to the agreement.

More @ https://www.coindesk.com/markets/2022/12/23/first-mover-americas-sec-scrutnizes-crypto-audits-sbf-gets-bail/

[franky1]

we all know the SBF on bail news. so not much to talk about there

however the linked article and SEC try to say dont trust proof of reserves because those audits dont include the hosting corporations asset and liabilities. where by PoR is just about customers reserves and wallets to back the customer balances

WELL here is the thing
corporations should not be co-mingling customer assets with corporate assets and so there should be a separation of asserts and a separate audit just for customers assets

yes having a separate corporate audit of corporates financial status also helps weigh how viable a corporation is to be sustainable and continue having their service open, or how close to debt they are to risk bankruptcy which then foolishly locks up customer assets for years and then ends up co-mingling the assets with corporate liabilities to then share out..


a good regulation is customer funds should be separate from a corporations share holders/creditors

thus funds get treated differently and customers can get what they deposited out, away from the drama of a corporate bankruptcy

albeit. with all that said a PoR may prove there are coin reserves that cover balances. however a PoR does not reveal motivations and CEO mindset about plans for the future of being greedy or malicious with regards to customers value
(a PoR does not reveal if a CEO wants to retire to a exotic island with users value)

[The Cryptovator]

In crypto, once an incident occurs, it cannot be reversed. So whether Sam Bankman-Fried is released from prison makes no difference. The FTX incident brought down the entire cryptocurrency market, affecting many users. Rather, Sam Bankman-Fried should be heavily punished so that others will be cautious when considering doing something wrong with user funds.

[pawel7777]

...
WELL here is the thing
corporations should not be co-mingling customer assets with corporate assets and so there should be a separation of asserts and a separate audit just for customers assets
...

a good regulation is customer funds should be separate from a corporations share holders/creditors

thus funds get treated differently and customers can get what they deposited out, away from the drama of a corporate bankruptcy
...

I'd say customer deposits should be restricted (i.e. can't be used for any other purpose than to fund withdrawals or to deduct CEX fees) and customers should be at the top of creditors' priority in case of insolvency. But I don't think corporate/customer funds can be separated entirely. I don't think anyone would mind if corporate reserves are inter-mingled with customers' funds when some of the customers' funds get hacked and stolen.
And for the proper financial audit to make sense, it'll have to cover ALL assets and liabilities, otherwise, an entity could be just moving funds around to appear solvent when it's not.

[Hispo]

Am I the only one who believes there is a risk he tries to escape?
Even though he had proven himself to feel rather disregard of the situation he created, I assume he is not fully willing to face the consequences of his actions.
It is like the story of the Terra-Luna founder Do Kwon, is he not still at large after an arrest warrant was issued ?

From my point of view this guy should have been held in jail without the chance of bail.

[Pentafa]

we all know the SBF on bail news. so not much to talk about there

however the linked article and SEC try to say dont trust proof of reserves because those audits dont include the hosting corporations asset and liabilities. where by PoR is just about customers reserves and wallets to back the customer balances

WELL here is the thing
corporations should not be co-mingling customer assets with corporate assets and so there should be a separation of asserts and a separate audit just for customers assets

yes having a separate corporate audit of corporates financial status also helps weigh how viable a corporation is to be sustainable and continue having their service open, or how close to debt they are to risk bankruptcy which then foolishly locks up customer assets for years and then ends up co-mingling the assets with corporate liabilities to then share out..


a good regulation is customer funds should be separate from a corporations share holders/creditors

thus funds get treated differently and customers can get what they deposited out, away from the drama of a corporate bankruptcy

albeit. with all that said a PoR may prove there are coin reserves that cover balances. however a PoR does not reveal motivations and CEO mindset about plans for the future of being greedy or malicious with regards to customers value
(a PoR does not reveal if a CEO wants to retire to a exotic island with users value)

Who are/were the external auditors of FTX's financial statements. Not only should they be held accountable but they should also be part of the trial.

[kryptqnick]

I generally support bail, given that people shouldn't be imprisoned before they are convicted, and given that the sum is pretty big (so I don't think he'll run).
But substance abuse and mental health treatment? If these are requirements for bail, might it mean Bankman-Fried's defence strategy is to prove that he, suffering from addiction and mental health issues, wasn't quite capable of recognizing his actions (regarding FTX) and thus isn't liable for criminal responsibility? IMO, that's the most interesting part in this news. I don't think such treatment is a standard bail requirement, so it might shed light on how the trial will play out.

[serjent05]

Am I the only one who believes there is a risk he tries to escape?
Even though he had proven himself to feel rather disregard of the situation he created, I assume he is not fully willing to face the consequences of his actions.
It is like the story of the Terra-Luna founder Do Kwon, is he not still at large after an arrest warrant was issued ?

From my point of view this guy should have been held in jail without the chance of bail.

I don't think Sam will evade the trial, but I do feel that justice may somehow be favorable to him.  I think that this will be the time his effort of supporting influential people in the US will take effect.  But of course, they will do it slowly so that people won't take notice.

It is really a biased world when the newspaper focus on the other issue and not to the fault SBF had done when reporting this kind of stuff just to divert people attention.  They can do it in a separate articles but intentionally combined the two to cover up wrong things SBF done.

[panganib999]

In crypto, once an incident occurs, it cannot be reversed. So whether Sam Bankman-Fried is released from prison makes no difference. The FTX incident brought down the entire cryptocurrency market, affecting many users. Rather, Sam Bankman-Fried should be heavily punished so that others will be cautious when considering doing something wrong with user funds.

Hopefully the court is to still handle his case and have it be a swift ruling. The amount of damage these people have made not only to the people they scammed but more importantly the cryptocurrency market is something that we may carry for many years. I really hate the way media portrays him as well. Making him look as if he really isn't at fault with happened and as if he's being pinned the blame while the real perpetrators are getting away at the crime scot-free. This narrative we will not buy anymore.

[coolcoinz]

In crypto, once an incident occurs, it cannot be reversed. So whether Sam Bankman-Fried is released from prison makes no difference. The FTX incident brought down the entire cryptocurrency market, affecting many users. Rather, Sam Bankman-Fried should be heavily punished so that others will be cautious when considering doing something wrong with user funds.

It would be a great achievement if users actually learned that holding coins on exchanges is a bad idea.

While SBF is the fraudster and should be punished, he merely picked up the money and put them in his pocket, but why was the money sent to him in the first place? An exchange is not a custodial solution, it's not a safe or a hardware wallet, it's what the name suggests: a place to make a transaction and leave, but people were ignoring all the red flags and calling this idiot "the most generous billionaire" when he never was a billionaire in the first place. He had billions in worthless shitcoins that, if dumped on the market, would generate something like 10 million each and crash the price. The king was naked from the beginning all the way to the end, but he had to be legit since Kevin O'Leary vouched for him, right?

[Rruchi man]

Am I the only one who believes there is a risk he tries to escape?

I don't think there is a chance of this happening. He knows how more severe his judgement will be if he tries to run and get caught again which he will if he tries it. Plus it is a foolish thing to do, for someone who is hoping not to be in jail. Where could he possibly run to that he would be able to hide from the security agencies?

From my point of view this guy should have been held in jail without the chance of bail.

Maybe it will finally get to jail term, but these already is to ensure he stays sane and alive to have a court case.

[franky1]

my view is

eg
customer PoR: (audit A)
customer balance total      500k coin
customer reserve address  500k coin
value ($) at audit : $8.25bill

customer assets: $8.25bill

company audit:(audit B)
company owned balance sheet: $2bill
company owned assets: $2bill
total liabilities $1.0bill
company status (+/-) = +$1bill

fully audited balances (a+b): $10.25bill
fully audited reserves (a+b): $10.25bill

where the +$1bill status is the company owned assets -  company liabilities
where customer assets are not part of the company status

thus proving no co-mingling and also no shuffling between customer to company occurred
and the company reserves audited where both are seen as totaling the same as all coins under control of company totalling the t

however
to many people have been saying to co-mingle the customer reserves with companies assets and liabilities where in the example above in their view it would be if there was a $4bill liabilities

company status (+/-) = +$6.25bill
which is bad because thats pretending the company could use customer reserves to pay off company liabilities

[pixie85]

Sam Bankrupt Fraud paid millions to be able to get a hug from his parents and a proper vegan meal. Or maybe it was just so that he could stop being someone's girlfriend for a few months.

Don't you worry Sam, this is inevitable. Sooner or later you're going back and there won't be even a private session with your girlfriend because she's throwing you under the bus as we speak.
She and your friend Gary pleaded guilty, so that's game over for you Sam. It's only a matter of time before you're in an orange jumpsuit.

[caddywampus2001]

Former FTX CEO Sam Bankman-Fried has been released on bail after appearing in U.S. federal court in New York on Thursday. Bankman-Fried was told he can live with his parents on $250 million bail secured in part by their Palo Alto, California, house. His release also includes a long list of requirements for him to remain free while he faces charges. He's not allowed to make financial transactions of more than $1,000, can't open new lines of credit, can't leave the house except to exercise and must go through substance abuse and mental health treatment, according to the agreement.

More @ https://www.coindesk.com/markets/2022/12/23/first-mover-americas-sec-scrutnizes-crypto-audits-sbf-gets-bail/

He claimed in an interview that he had less than $100,000, so how can he afford to pay the $250,000,000 bond?

[stomachgrowls]

In crypto, once an incident occurs, it cannot be reversed. So whether Sam Bankman-Fried is released from prison makes no difference. The FTX incident brought down the entire cryptocurrency market, affecting many users. Rather, Sam Bankman-Fried should be heavily punished so that others will be cautious when considering doing something wrong with user funds.

Totally light and there should be no bail for this one, we arent all that dumb not to say that those bail money had been provided is really just came from their users which it did really make him at least taste some
freedom even its not really totally due to those restrictions but it is really much better rather to be on jail.We should really be seeing the other way around.
These had been talked about those probabilities that might happen a few days ago and some people were really just actually right on things that could possibly happen
which it really ended up on this way which it didnt make them surprised nor really get shocked.

[BitcoinPanther]

Former FTX CEO Sam Bankman-Fried has been released on bail after appearing in U.S. federal court in New York on Thursday. Bankman-Fried was told he can live with his parents on $250 million bail secured in part by their Palo Alto, California, house. His release also includes a long list of requirements for him to remain free while he faces charges. He's not allowed to make financial transactions of more than $1,000, can't open new lines of credit, can't leave the house except to exercise and must go through substance abuse and mental health treatment, according to the agreement.

More @ https://www.coindesk.com/markets/2022/12/23/first-mover-americas-sec-scrutnizes-crypto-audits-sbf-gets-bail/

He claimed in an interview that he had less than $100,000, so how can he afford to pay the $250,000,000 bond?

SBF have properties, and it was stated is secured by the part of their Palo Alto, California, house.  But shouldn't this property be confiscated and liquidated in order to reimburse the victims.  The government did really want the share of the pie.  They had SBF fined $250m when they can just use that $250m to fund a reimbursement to many victims of FTX and let SBF rot in jail.  It should be non-bailable because of the degree and extent of the damage done by the incompetence and fraud of the FTX company.  Now we are witnessing how light the justice system is on SBF.

[jossiel]

There's still got much money left for him and that's not surprising. People who have been a victim of his collapse might feel bad that instead of him returning that amount to the affected ones, he just used it for bailing.

While his ex-gf, Caroline, pleaded guilty.

Well, he may be on release for now but I'm sure that he can't do this forever or else there's a financier or he has tempt the billions of money somewhere he can access anytime.

[FatFork]

He claimed in an interview that he had less than $100,000, so how can he afford to pay the $250,000,000 bond?

According to Reuters, Bankman-Fried's bail was secured by his parents Joseph Bankman and Barbara Fried, who offered up their home in Palo Alto, California.

Does the bail amount mean Bankman-Fried or his family has $250 million?

No. In Bankman-Fried's case, the $250 million bond is secured by his parents' home. Since Bankman-Fried's parents signed the bond agreement, they would be on the hook for $250 million if their son flees.

[drwhobox]

In crypto, once an incident occurs, it cannot be reversed. So whether Sam Bankman-Fried is released from prison makes no difference. The FTX incident brought down the entire cryptocurrency market, affecting many users. Rather, Sam Bankman-Fried should be heavily punished so that others will be cautious when considering doing something wrong with user funds.

We may, for a long time, feel the weight of the harm these scammers have caused, not just to the investors who lost on this but also to the entire bitcoin market. The media's portrayal of him is really irritating to me as well. Also, he will have the support of influential people. The agreement to visit mental health care is a way to skip further judgment.

[CryptoPanda]

I don’t understand why SBF was granted bail, a case of this magnitude and also considering the resources he has at his disposal, doesn’t that make SBF a flight risk? Didn’t the FBI catch him trying to flee the country to Dubai?What’s stopping him from trying again? If I was a victim of FTX scam, I would be feeling very sad right now, the justice system is too slow and manipulated.