#Cryptocrash
- Thread starter nsacpi
- Start date
Tapate50
Well-known member
It was too public. Everyone saw it unfolding exactly the way it looked. They had to do
Something
nsacpi
Expects Yuge Games
FTX founder Sam Bankman-Fried diverted customer funds from the start of his cryptocurrency exchange to support his hedge fund, Alameda Research, and to make venture investments, real-estate purchases and political donations, the Securities and Exchange Commission alleged in a lawsuit filed Tuesday.
"Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto," said SEC Chair Gary Gensler in a statement.
Mr. Bankman-Fried was arrested Monday in the Bahamas. The arrest was made based on a sealed indictment filed by the U.S. Attorney’s Office Southern District of New York, the U.S. attorney said. The charges in the indictment include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.
https://www.wsj.com/livecoverage/sam-bankman-fried-arrested-ftx-congress
"Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto," said SEC Chair Gary Gensler in a statement.
Mr. Bankman-Fried was arrested Monday in the Bahamas. The arrest was made based on a sealed indictment filed by the U.S. Attorney’s Office Southern District of New York, the U.S. attorney said. The charges in the indictment include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.
https://www.wsj.com/livecoverage/sam-bankman-fried-arrested-ftx-congress
sturg33
I
It did allow him to avoid a testimony under oath which was set to happen to today. May have done him a huge favor
sturg33
I
Not doing so reduces the risk of public officials being outed
zitothebrave
Connoisseur of Minors
zitothebrave
Connoisseur of Minors
Here's my theory on this.
1. Very few if any average Americans Bought this, this was a way for Trump to get money and avoid campaign finance laws. My guess is mainly these were bought up by mega donors in the US and abroad.
2. Boy do I more than ever believe that Trump's just doing this to make republicans look bad to make himself rich.
nsacpi
Expects Yuge Games
Two associates of FTX founder Sam Bankman-Fried have pleaded guilty for their roles in fraud that contributed to the cryptocurrency exchange’s collapse and are cooperating with federal investigators.
Caroline Ellison, the former chief executive of Alameda Research, a trading firm tied to FTX, and Gary Wang, FTX’s former chief technology officer, both pleaded guilty to criminal offenses similar to those Mr. Bankman-Fried was charged with last week.
Damian Williams, the U.S. attorney for the Southern District of New York, announced the charges and plea agreements in a video posted online Wednesday night. Mr. Williams called for others who participated in alleged misconduct at FTX or Alameda to come forward.
https://www.wsj.com/articles/two-as...-prosecutors-say-11671676292?mod=hp_lead_pos1
Caroline Ellison, the former chief executive of Alameda Research, a trading firm tied to FTX, and Gary Wang, FTX’s former chief technology officer, both pleaded guilty to criminal offenses similar to those Mr. Bankman-Fried was charged with last week.
Damian Williams, the U.S. attorney for the Southern District of New York, announced the charges and plea agreements in a video posted online Wednesday night. Mr. Williams called for others who participated in alleged misconduct at FTX or Alameda to come forward.
https://www.wsj.com/articles/two-as...-prosecutors-say-11671676292?mod=hp_lead_pos1
sturg33
I
Can you explain in your own words how BTC is a pyramid scheme?
sturg33
I
Quite clear he cannot
nsacpi
Expects Yuge Games
Caroline Ellison, a close associate of FTX founder Sam Bankman-Fried, apologized in court this week as she pleaded guilty to fraud and other offenses, telling a judge that she and others conspired to steal billions of dollars from customers of the doomed crypto exchange while misleading investors and lenders.
“I am truly sorry for what I did,” Ms. Ellison, the former chief executive of Mr. Bankman-Fried’s crypto-trading firm, Alameda Research, said in a New York federal court, according to a transcript of the hearing made available Friday. “I knew that it was wrong.”
Ms. Ellison, 28 years old, and former FTX chief technology officer Gary Wang, 29, pleaded guilty Monday during separate hearings without notice to the public. Both agreed to cooperate with the government’s investigation in exchange for the prospect of lighter sentences.
Ms. Ellison, a former romantic partner of Mr. Bankman-Fried, pleaded guilty to seven criminal counts, including fraud, conspiracy and money laundering. During her hearing, she admitted to conspiring to use billions of dollars from FTX customer accounts to repay loans Alameda had taken out to make risky investments.
FTX executives had enacted special settings that granted Alameda access to an unlimited line of credit without having to post collateral, pay interest on negative balances or be subject to margin calls, she said.
“I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and fiat currency deposits to Alameda in this fashion,” she said.
Ms. Ellison also said she and Mr. Bankman-Fried worked with others to conceal the arrangement from lenders, including by hiding on quarterly balance sheets the extent of Alameda’s borrowing and the billions of dollars in loans that the firm had made to FTX executives and associates. Mr. Bankman-Fried was among the executives who received loans from Alameda, she said.
Under questioning from the judge, Ms. Ellison said she knew what she was doing was illegal.
At the hearing, U.S. District Judge Ronnie Abrams granted the request of federal prosecutors to temporarily seal all documents connected to Ms. Ellison’s plea agreement. At the time, Mr. Bankman-Fried was in a jail in the Bahamas after the Justice Department requested local police arrest him, and he had not yet formally consented to his transfer to U.S. custody.
“We’re still expecting extradition soon, but given that he has not yet entered his consent, we think it could potentially thwart our law enforcement objectives to extradite him if Ms. Ellison’s cooperation were disclosed at this time,” Assistant U.S. Attorney Danielle Sassoon told Judge Abrams.
A lawyer for Ms. Ellison declined to comment. Ms. Ellison was ordered released on $250,000 bond at her plea hearing.
Mr. Wang pleaded guilty in front of the same judge. He told Judge Abrams he knew what he was doing was illegal and wrong. “As part of my employment at FTX, I was directed to and agreed to make certain changes to the platform’s code,” he said, adding that he executed the changes knowing they would give Alameda Research special privileges on the FTX platform.
Judge Abrams, who presided over both plea hearings, said in a filing Friday evening that she would recuse herself from the case. Her husband is a partner at a law firm that advised FTX in 2021, as well as represented parties that may be adverse to FTX in other proceedings, the filing said.
https://www.wsj.com/articles/caroli...-in-ftx-collapse-11671818789?mod=hp_lead_pos3
“I am truly sorry for what I did,” Ms. Ellison, the former chief executive of Mr. Bankman-Fried’s crypto-trading firm, Alameda Research, said in a New York federal court, according to a transcript of the hearing made available Friday. “I knew that it was wrong.”
Ms. Ellison, 28 years old, and former FTX chief technology officer Gary Wang, 29, pleaded guilty Monday during separate hearings without notice to the public. Both agreed to cooperate with the government’s investigation in exchange for the prospect of lighter sentences.
Ms. Ellison, a former romantic partner of Mr. Bankman-Fried, pleaded guilty to seven criminal counts, including fraud, conspiracy and money laundering. During her hearing, she admitted to conspiring to use billions of dollars from FTX customer accounts to repay loans Alameda had taken out to make risky investments.
FTX executives had enacted special settings that granted Alameda access to an unlimited line of credit without having to post collateral, pay interest on negative balances or be subject to margin calls, she said.
“I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and fiat currency deposits to Alameda in this fashion,” she said.
Ms. Ellison also said she and Mr. Bankman-Fried worked with others to conceal the arrangement from lenders, including by hiding on quarterly balance sheets the extent of Alameda’s borrowing and the billions of dollars in loans that the firm had made to FTX executives and associates. Mr. Bankman-Fried was among the executives who received loans from Alameda, she said.
Under questioning from the judge, Ms. Ellison said she knew what she was doing was illegal.
At the hearing, U.S. District Judge Ronnie Abrams granted the request of federal prosecutors to temporarily seal all documents connected to Ms. Ellison’s plea agreement. At the time, Mr. Bankman-Fried was in a jail in the Bahamas after the Justice Department requested local police arrest him, and he had not yet formally consented to his transfer to U.S. custody.
“We’re still expecting extradition soon, but given that he has not yet entered his consent, we think it could potentially thwart our law enforcement objectives to extradite him if Ms. Ellison’s cooperation were disclosed at this time,” Assistant U.S. Attorney Danielle Sassoon told Judge Abrams.
A lawyer for Ms. Ellison declined to comment. Ms. Ellison was ordered released on $250,000 bond at her plea hearing.
Mr. Wang pleaded guilty in front of the same judge. He told Judge Abrams he knew what he was doing was illegal and wrong. “As part of my employment at FTX, I was directed to and agreed to make certain changes to the platform’s code,” he said, adding that he executed the changes knowing they would give Alameda Research special privileges on the FTX platform.
Judge Abrams, who presided over both plea hearings, said in a filing Friday evening that she would recuse herself from the case. Her husband is a partner at a law firm that advised FTX in 2021, as well as represented parties that may be adverse to FTX in other proceedings, the filing said.
https://www.wsj.com/articles/caroli...-in-ftx-collapse-11671818789?mod=hp_lead_pos3
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