4 ms·

There's a guy in the clear stealing billions of dollars and nothing happens. People go to prison for stealing a car, this is literally 1000000 times bigger an

There's a guy in the clear stealing billions of dollars and nothing happens. People go to prison for stealing a car, this is literally 1000000 times bigger and he's not even arrested. He belongs to prison for a life time. All the other talk about crypto / regulation is just hiding how corrupt the system is for not arresting this guy instantly.

pr0crastin8 4y ago
From all this talk of Effective Altruism, it seems we actually need a greater push for "Effective Justice". Individuals and companies need to be better held to account for the scale of societal (and environmental) damage that they cause.
Reason077 4y ago
If the allegations of criminal activity are true, he will very likely end up in prison. Obviously it will take time for investigations to gather evidence, prosecutors to file charges, etc. These are still very recent events. Just be patient!
- whoooooo123 4y ago
  I'm so lost. I'd never heard of this guy or FTX until a couple of days ago. Can someone give me a link to the best and (this is important) most succinct summary of what the hell happened here? Why did all this money vanish, and what crimes did SBF commit?
  - zajio1am 4y ago
    Here is a detailed description: https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus.html https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus...
  - williamcotton 4y ago
    You’re asking a mob with torches and pitchforks for calm-headed appraisal?
  - pjc50 4y ago
    1) FTX had a token they issued, but were booking this as an "asset". This is like issuing yourself an "IOU 1 billion" note and claiming you're a billionaire. 2) To obfuscate this slightly, they lent "$10bn" of tokens to Alameda Research, which was a "hedge fund" run by his girlfriend on the exchange 3) Alameda made huge trading losses, as often happens to novice traders. A Nick Leeson event. 4) Changpeng Zhao of Binance noticed there was a problem: https://fortune.com/2022/11/07/crypto-billionaires-cz-binance-bankman-fried-ftx-exchange-ftt-busd/ https://fortune.com/2022/11/07/crypto-billionaires-cz-binanc... 5) This triggered a "bank run" on FTX 6) FTX are now insolvent: https://twitter.com/SBF_FTX/status/1591089317300293636 https://twitter.com/SBF_FTX/status/1591089317300293636 7) That was the last we heard from SBF. There are now reports that the exchange has been "hacked" and coins stolen. It is not yet clear by whom, or where SBF is.
chaosbolt 4y ago
You don't go to prison when you are the 2nd biggest donor to the current president's campaign. Mark Karpales didn't go to prison for Mt Gox, he spent some months in jail because they were afraid he might leave Japan + Japan isn't like the west he prpbably doesn't have connections there, then left and worked for different financial companies and then started another company assessing risk or something. Alex Mashinsky (founder of Celcius) didn't go to prison either. On the other hand, Do Kwon (Terra) is a fugitive and interpol is looking for him, and Satish Kumbhani (Bitconnect) got indicted but disappeared so the cops are looking for him. So yeah you have to turn off your pattern recognition or else be called a bad name.
- eterm 4y ago
  To be accurate, Mark Karpeles was sentenced to prison, albeit a suspended setence.
  - michaelt 4y ago
    Calling a suspended sentence "didn't go to prison" is accurate, because you do not go to prison. So I'm not sure what you're correcting here.
- sschueller 4y ago
  Does anyone remember Marc Rich? "Clinton's critics alleged that Rich's pardon had been bought, as Denise Rich had given more than $1 million[36] to Clinton's political party (the Democratic Party), including more than $100,000 to the Senate campaign of the president's wife, Hillary Rodham Clinton, and $450,000 to the Clinton Library foundation during Clinton's time in office.[31]" https://en.wikipedia.org/wiki/Marc_Rich https://en.wikipedia.org/wiki/Marc_Rich
  - pjc50 4y ago
    Is there a Presidential pardon that wasn't abusive of the system? From Nixon to Iran-Contra to war crimes in Afghanistan?
cscurmudgeon 4y ago
> People go to prison for stealing a car Well, not any more. https://www.sfchronicle.com/sf/bayarea/heatherknight/article/Caught-red-handed-S-F-residents-fume-17383280.php https://www.sfchronicle.com/sf/bayarea/heatherknight/article...

pr0crastin8 4y ago

From all this talk of Effective Altruism, it seems we actually need a greater push for "Effective Justice". Individuals and companies need to be better held to account for the scale of societal (and environmental) damage that they cause.

Reason077 4y ago

If the allegations of criminal activity are true, he will very likely end up in prison. Obviously it will take time for investigations to gather evidence, prosecutors to file charges, etc. These are still very recent events. Just be patient!

whoooooo123 4y ago
I'm so lost. I'd never heard of this guy or FTX until a couple of days ago. Can someone give me a link to the best and (this is important) most succinct summary of what the hell happened here? Why did all this money vanish, and what crimes did SBF commit?
- zajio1am 4y ago
  Here is a detailed description: https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus.html https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus...
- williamcotton 4y ago
  You’re asking a mob with torches and pitchforks for calm-headed appraisal?
- pjc50 4y ago
  1) FTX had a token they issued, but were booking this as an "asset". This is like issuing yourself an "IOU 1 billion" note and claiming you're a billionaire. 2) To obfuscate this slightly, they lent "$10bn" of tokens to Alameda Research, which was a "hedge fund" run by his girlfriend on the exchange 3) Alameda made huge trading losses, as often happens to novice traders. A Nick Leeson event. 4) Changpeng Zhao of Binance noticed there was a problem: https://fortune.com/2022/11/07/crypto-billionaires-cz-binance-bankman-fried-ftx-exchange-ftt-busd/ https://fortune.com/2022/11/07/crypto-billionaires-cz-binanc... 5) This triggered a "bank run" on FTX 6) FTX are now insolvent: https://twitter.com/SBF_FTX/status/1591089317300293636 https://twitter.com/SBF_FTX/status/1591089317300293636 7) That was the last we heard from SBF. There are now reports that the exchange has been "hacked" and coins stolen. It is not yet clear by whom, or where SBF is.

chaosbolt 4y ago

You don't go to prison when you are the 2nd biggest donor to the current president's campaign. Mark Karpales didn't go to prison for Mt Gox, he spent some months in jail because they were afraid he might leave Japan + Japan isn't like the west he prpbably doesn't have connections there, then left and worked for different financial companies and then started another company assessing risk or something. Alex Mashinsky (founder of Celcius) didn't go to prison either. On the other hand, Do Kwon (Terra) is a fugitive and interpol is looking for him, and Satish Kumbhani (Bitconnect) got indicted but disappeared so the cops are looking for him. So yeah you have to turn off your pattern recognition or else be called a bad name.

eterm 4y ago
To be accurate, Mark Karpeles was sentenced to prison, albeit a suspended setence.
- michaelt 4y ago
  Calling a suspended sentence "didn't go to prison" is accurate, because you do not go to prison. So I'm not sure what you're correcting here.
sschueller 4y ago
Does anyone remember Marc Rich? "Clinton's critics alleged that Rich's pardon had been bought, as Denise Rich had given more than $1 million[36] to Clinton's political party (the Democratic Party), including more than $100,000 to the Senate campaign of the president's wife, Hillary Rodham Clinton, and $450,000 to the Clinton Library foundation during Clinton's time in office.[31]" https://en.wikipedia.org/wiki/Marc_Rich https://en.wikipedia.org/wiki/Marc_Rich
- pjc50 4y ago
  Is there a Presidential pardon that wasn't abusive of the system? From Nixon to Iran-Contra to war crimes in Afghanistan?

cscurmudgeon 4y ago

> People go to prison for stealing a car Well, not any more. https://www.sfchronicle.com/sf/bayarea/heatherknight/article/Caught-red-handed-S-F-residents-fume-17383280.php https://www.sfchronicle.com/sf/bayarea/heatherknight/article...