7 ms·
He will get away clean.
by midislack 4y ago
He will get away clean.
- qprofyeh 4y agoIANAL. What's his defense?
- epgui 4y agoThere's no need to talk about any defence strategy if there are no specific accusations. And by specific I mean specific: what is the accusation? (Just to be clear, I am not on his side. I'm just pedantic.)
- 0xy 4y agoSecurities fraud. SBF almost certainly misrepresented the company during negotiations with investors in its most recent fundraising attempts. If his Twitter deception is anything to go by, he liked lied to investors about pilfering customer funds to bail out failed Alameda Research. Forget about lying, it's illegal to even withhold pertinent information when pitching to US investors. The Bahamas is no safe haven. They will extradite. After all, his investors are in the US and those transactions are covered by SEC rules. Given the scale of the fraud here, this is serious jail time. He could be saved by his political bribes, though, considering he's greased the palms of the current administration (#2 Democrat donator in the recent cycle) ;)
- user_named 4y agoHe's supposedly fled to Argentina. Probably just a stop on the way to his final destination
- baq 4y agoThe aircraft was registered in Argentina, so maybe it was just pulled back as sbf can’t pay for it. But yeah, I’d assume he’s on the run.
- biztos 4y agoI always wonder about escape plans when people are doing really dodgy things with large amounts of money. Do you come up with an escape plan when you start doing the thing you know is probably illegal and will definitely get you in serious trouble if it doesn't work? Or do you just convince yourself it's gonna work, because it worked for long enough to convince you that you're too smart to fail? I think I'd get me an extradition-proof mountaintop lair if I had even tens of millions and they were squeaky clean. Because you never know, right? (Or, maybe I watch too many movies.)
- threeseed 4y agoFrom all accounts this situation has moved far quicker than anyone expected. There's tweets that say that CZ wasn't trying to tank FTX with his "I'm selling FTT" announcement but rather just wanted to fire a shot across the bow. And we should believe him when he says that this isn't good for him or the industry - because it really isn't. And so in this case you have a few days to make a simple binary decision. Do you steal a few hundred million, bail to some country and hope you can live the next 50+ years without being extradited or risk staying in the US, being poor and spending the next 20+ years in jail. Many people would happily roll the dice and pick the former option.
- imron 4y agoOf course you’d pick the former. You can’t save the world from a jail cell, and just think about all the people you’ll be able to help sitting on a cool billion, by the beach in a country with a no extradition policy. It’s the altruistic choice.
- csomar 4y agoWe don’t know whether he was negligent or malicious. We don’t know also whether he was internationally competent (bahamas) or just imprudent. Getting away is easy if he walks of the usa. If you keep a low profile in south america, pretty much no one will recognize him.
- fmajid 4y ago
- threeseed 4y agoWe don't know whether they misrepresented the situation or not. But what we do know is that they had no Board of Directors and the level of independent oversight was completely inadequate given the sums of money involved. If I was the SEC I would do nothing and simply remind investors like Sequoia of their responsibility to do basic due diligence. Because I really don't know how you can class them as professional investors given the level of incompetence.
- csomar 4y agoThere is serious money missing here (8-10bn) and serious connected investors that have been duped. I doubt his political donations will make a difference. Best case scenario he was working with the cia and was helping them finance some of these donations or other stuff. Then they’ll arrange his disappearance in another country or the afterlife.
- djbebs 4y agoFraud is one
- blitzar 4y agoHe is already setting up for the "it wasnt me" defence, along with the associated "I am a victim too". Eventually it will be pointed out that they were not actually real banks or brokerages, just crypto ones, and the "its not actually illegal" defence will kick in.
- throwaway742 4y agohttps://www.youtube.com/watch?v=2g5Hz17C4is https://www.youtube.com/watch?v=2g5Hz17C4is
- blitzar 4y ago"Gonna tell her that I'm sorry For the pain that I've caused"
- baq 4y agoIt’ll also help to have real estate in UAE.
- themihai 4y agoCrypto investors should not hold their funds in custodial wallets(i.e centralised exchanges). Sam did a great service to the crypto world. As far as I'm concerned they've got what they deserved. Hopefully Binance'll show them the empty bag as well and finnally the myth of centralised crypto is busted.
- itake 4y agoEveryone that didn’t hold their Terra or UST in an exchange couldn’t exit fast enough
- fmajid 4y agoIt doesn't matter whether you keep the IOU from a crook in your own wallet or at your bank, it's still intrinsically worthless. What I don't understand is what kind of sucker would still be willing to take them off your hands.
- user_named 4y agoAll crypto is centralized and always will be.
- mmcwilliams 4y agoIt's unfortunate that this is a lesson that is re-taught pretty regularly. I vividly remember this coming up when the Mt. Gox hack happened in 2014. Since many people are using crypto to speculate and day trade, exchanges will be the most convenient place for most people to keep their coins unless something changes this in a major way.
- nigrioid 4y ago
- lordnacho 4y agoI worked for an investment company that lost a lot of money once. The first thing we did was go visit the lawyer, who provided great relief for my boss. Basically as long as you haven't broken the law or the contracts, you're ok. It's no different from "I bought some stuff that lost money". That's the defense. I don't know anything about that rather large caveat in this case, but for that old boss it was clear since everything was exchange listed and there were never any movements of money other than to the clearing houses.
- khuey 4y agoThey almost certainly broke the contracts at a bare minimum.
- UncleEntity 4y agoThey weren’t running an investment house but an exchange. Investments come with inherent and stated risks and if you lose money, well, you knew the risks.
- dragonwriter 4y ago> I worked for an investment company that lost a lot of money once Losing money is not SBF’s problem. Stealing customer assets to cover for it, and then losing those, too, is. And tweeting through it, providing confessions to that that will greatly complicate any defense.
- ElfinTrousers 4y agoNo, he stole from the rich. They'll track him down and make an example of him.
- belter 4y agoYou are so correct. Bernie Madoff was exemplary convicted and in record time. And incredibly almost all funds were recovered by pressuring his business associates, even when the fault of some of these associates was not clear cut.
- sam345 4y agounfortunately funds recovery probably not going to happen here.
- pmorici 4y agoOn one hand yes BUT on the other he donated something like $40 million to Democratic Party candidates last cycle. 2nd largest donation. https://fortune.com/2022/11/10/sam-bankman-fried-ftx-joe-biden-democratic-party-second-biggest-donor/amp/ https://fortune.com/2022/11/10/sam-bankman-fried-ftx-joe-bid...
- ElfinTrousers 4y agoYeah, I have a feeling they're not returning his phone calls too quickly these days.
- none_to_remain 4y agoBut if we assume he can't perform similarly in the future - what reason do the Democrats have to help him now?
- tjpnz 4y agoBased on his background he's going to get away with a light slap on the wrist.
- bookofjoe 4y ago"Theranos founder Elizabeth Holmes should spend 15 years in prison and pay $800 million in restitution to investors defrauded in the blood testing start-up, U.S. prosecutors recommended late on Friday. "The Department of Justice recommendation, made in a court filing, came as Holmes prepares to be sentenced next week." https://www.reuters.com/world/us/us-seeks-15-years-elizabeth-holmes-over-theranos-fraud-2022-11-12/ https://www.reuters.com/world/us/us-seeks-15-years-elizabeth...