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He bought a $16m house in his parents’ names with company funds (fraud). He transferred customer funds to an unrelated hedge fund company (fraud). He created
by grey-area 4y ago
He bought a $16m house in his parents’ names with company funds (fraud).
He transferred customer funds to an unrelated hedge fund company (fraud).
He created fake accounting systems to hide the fraud (fraud).
He claimed to be making lots of money just to help others (morally reprehensible and a huge red flag).
That people are still making excuses for him tells you how rotten this entire ecosystem is.
- tickerticker 4y agoSBF is so so bad. But, When does it become criminal to skip the step of establishing an accounting system....prior employees say they didn't even know their cash, liability, or trading positions. FTX customer deposits went into Alameda bank account. Could be that they stayed there and somebody just kept a spreadsheet of deposits? My point is that the astounding lack of records and systems may make it very difficult to prosecute him. For example, trades and payments were executed just on verbal orders so it will be hard to pin specifics on SBF. Probably testimony of insiders will be the most compelling evidence against him.
- grey-area 4y agoOh I suspect he had lots of records for himself (just as one example each real estate transaction had records) and the ‘stunning lack of records’ is yet another lie (along with his lies about not understanding anything), in an attempt to cover up fraud with perceived incompetence. Suddenly, it seems nobody knew anything, how convenient! He stole money and enriched himself and his family at the expense of others. He and everyone else involved including his parents, higher up employees and investors should feel deep shame.