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FTX Founder Sam Bankman-Fried Faces Four More Criminal Charges From Federal Prosecutors

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37 comments on FTX Founder Sam Bankman-Fried Faces Four More Criminal Charges From Federal Prosecutors

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Image clip from WSJ video. Ray wound down the collapse of Enron.

The Wall Street Journal reports Sam Bankman-Fried Faces More Criminal Charges From Federal Prosecutors

That is a free link if you wish to read the article.

Federal prosecutors on Thursday unveiled a new indictment against Sam Bankman-Fried, charging the FTX founder with additional criminal counts and making detailed allegations that he engaged in conduct that led to his exchange’s collapse.

The indictment, unsealed Thursday, charges the 30-year-old Mr. Bankman-Fried with 12 criminal counts. The prior indictment, which prosecutors brought in December after a brief investigation, charged him with eight.

The new charges include conspiracy to operate an unlicensed money-transmitting business and conspiracy to commit bank fraud.

“Contrary to Bankman-Fried’s promises to FTX customers that the exchange would protect their interests and segregate their assets, Bankman-Fried routinely tapped FTX customer assets to provide interest-free capital for his and Alameda’s private expenditures, and in the process exposed FTX customers to massive, undisclosed risk,” the indictment said.

Mr. Bankman-Fried is also accused of directing the use of Alameda funds for a straw political-donation scheme that masked the true source of tens of millions of dollars in contributions to Democrats and Republicans. He had previously been charged with violating campaign-finance laws, but the new indictment makes detailed allegations about the purpose of those donations: to gain political influence in Washington, including over federal policy on cryptocurrency.

SBF maintains no funds were stolen. But it’s clear FTX repeatedly lent client funds for multiple purposes, including politics.

Federal prosecutors seek to make an example out of SBF, and they will. 

At his peak SBF was worth $33 billion, on paper. It was never possible to cash out. A couple of weeks later, SBF was worth nothing. 

And now it’s highly likely SBF gets an extended stay in jail.

This post originated at MishTalk.Com.

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37 Comments
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Oldest Most Voted
Hansa Junchun
Hansa Junchun
3 years ago
SBF is a very excellent case study of how money transcends all law and decency.
When the money’s gone, so is the ability to flout those things.
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phil
phil
3 years ago
i’m sweating this. do we really need to put him away for years? the cost of that. better to make an example of him without the cost to all of us as tax payers. better to ‘turn him’ in some way, and let him make amends. what ticks me or interests me the most is that his parents were law profs at stanford. what the heck? what’s that about? are they all that stupid or turning an eye, and/or they had no idea what they were into. It’s unfathomable. My parents gave me good advice, and they had serious background, dealing with the depression, and they well communicated to me the financial mistakes they made (weird partnership investment and the building was full of asbestos), and the all upsides as well. I’d grind the parents down more than the kid. they raised him. he’s a bit of a psychopath. like Hunter and his dad.
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Doug78
Doug78
3 years ago
Reply to  phil
Vast amounts of money can make you do really weird things.
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Winn
Winn
3 years ago
Reply to  Doug78
True,
Easy come easy go.
He gambled away.
I don’t have one million.
He lost 33,000,000,000 MILLIONS – – PLUS – – His life jail term.
That’s the stake he bet.
The more you have money the higher the stake.
Compulsive gambler.
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Winn
Winn
3 years ago
Reply to  Winn
Correction – 33 billions = 33,000 millions
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KidHorn
KidHorn
3 years ago
Reply to  Winn
That money was never real. It’s like if I claimed a planet made of diamonds and gold that was 100 light years away. Technically I would be worth a gazillion dollars, but there’s no way to ever get any of the money.
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vanderlyn
vanderlyn
3 years ago
Reply to  phil
he is a useful idiot of his parents. obvious to me. he worked for my pal for 5 years at jane street capital. he’s a useful idiot. like W to this father. but this is small potatoes.
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HippyDippy
HippyDippy
3 years ago
Luckily, the state will now regulate crypto to ensure that the already illegal activities won’t happen again without the state profiting from it.
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vanderlyn
vanderlyn
3 years ago
Reply to  HippyDippy
BTC was a us military/cia….. invention. 100% certainty. just like darpa net, highways and manhattan project, all were known to have commercial use too. BTC was invented by us gov to move dough around instead of hawala system to our assets. look up what satosha nokomota means in japanese. they spoofed everyone. hat tip to the evil geniuses.
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HippyDippy
HippyDippy
3 years ago
Reply to  vanderlyn
I was thinking it was the NSA, but they’re all the same. I never trusted crypto. It’s always been overhyped in every manner. It made no sense as an investment since it never had any real substantive value. It relies on the internet for its very existence, and anyone who thinks the internet is not going to crash, for at least a substantial period of time if not permanently, isn’t paying attention. Security flaws mean you could be a trillionaire and still be broke. The list goes on. Sheer hucksterism at its finest. Haven’t heard of the translation part, but I’m off to do that next. Should be a great laugh. Surveillance Valley is a great resource for the government role. Q-Intel was great at laundering all that drug money the CIA had hanging around! Though that last is just pure speculation on my part. But still very probable.
Just checked it and it was funnier than I thought! Especially since the CIA removed all the ambiguity out of the translation. Hilarious!
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vanderlyn
vanderlyn
3 years ago
Reply to  HippyDippy
nsa/cia. look at homepage of darpa. that’s where the brains go to brainstorm the new inventions. i know plenty of black ops guys who used the ancient hawala system, to transfer OUR money to warlords etc in kurdistan to pashtuns in afghanistan for decades. BTC was invented to make their money transfers easier etc. this is just the way of the world. nothing earth shattering. BTC is like Darpanet, like us highways like manhattan project………….can be used for great things like NFT art, or can be used to kill little kids who live on top of OUR OIL in god forsaken lands of the earth.
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HippyDippy
HippyDippy
3 years ago
Reply to  vanderlyn
Don’t forget the drugs! The French Connection was really the US taking over the heroin trade in the Golden Triangle. Intelligence agencies. And we hooked an entire generation. Same with Afghanistan. Coke in the more southern americas. Fentanyl now. Funny how the Chinese got that formula from us so fast. We’ve been a narco-terrorist state for a very long time. Yale having its roots in the Chinese opium smuggling business. The slaves all demand that we all allow the most morally depraved set the parameters of our morality. Not happening here.
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Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  HippyDippy
The nicest thing about Bitcoin is that it does not require any international reply coupons.
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HippyDippy
HippyDippy
3 years ago
Reply to  Lisa_Hooker
That’s funny!
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Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  HippyDippy
Congress will not regulate until they have placed their personal “investments” in crypto.
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Maximus_Minimus
Maximus_Minimus
3 years ago
Just remember, SBF was advising the SEC chairman on rule changes.
Just a few more meetings, and bribes I mean donations, and all would be legal.
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FromBrussels2
FromBrussels2
3 years ago
Don t know Sam fn Bankman and I couldn t care less whatever happened to him , a totally insignificant matter within a seriously deteriorating financial/social geopolitical context anyway ….. After having my account blocked for a while I am happy to be back again in the very nick of time to congratulate the US of A on the 20th anniversary of the Iraq invasion when “America Saved The World of Great Danger ” ,according to Ronny Bush that was, which eventually turned out to be a blatant lie ….Thank gowd though that the US of A is still spreading ‘freedom’ and demockcrazy all over our half destroyed planet , at present your admirable democratic powers are at work in Ukraine with thousands of foreign cannon fodder being killed killed on a weekly basis, at the same time destroying the EU’s economic power in the process thanks to the utterly useless selfdestructive bunch of idiots we got for leaders, which was of course all part of the deep state neo cons’ plan ….. Congratulations I d say again ….the planet is only half destroyed , you got some margin there , go for it !
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Doug78
Doug78
3 years ago
Reply to  FromBrussels2
You will never be accused of having a rapier wit.
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Maximus_Minimus
Maximus_Minimus
3 years ago
Reply to  FromBrussels2
You’ve got to update your vocabulary. It’s called “Rule-based international order”.
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KidHorn
KidHorn
3 years ago
He gave a lot more to democrats than republicans. The democrats will find a liberal judge and liberal jury to go light on him.
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Jojo
Jojo
3 years ago
Reply to  KidHorn
He had two lackeys in the company that he used for political donations, one focused on Dems and one focused on Pubs. See this article:
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KidHorn
KidHorn
3 years ago
Reply to  Jojo
I can’t read that, but it seems what democrats expect for bribes and what republicans expect is worlds apart. Probably because democrats have a lot more suitors to choose from.
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Jojo
Jojo
3 years ago
Reply to  KidHorn
You need a browser than can block scripts, like Firefox with the NoScripts add-on.
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Matt3
Matt3
3 years ago
So the signers for his bond are from Stanford.
“Stanford University’s Andreas Paepcke and Larry Kramer have been revealed as the co-signers of Sam Bankman-Fried’s bond, according to a recent ruling by the Southern District of New York.”
How exactly do they have the wherewithal to sign for a 250 million bond? Is Stanford a part of the scam? Maybe he’s the patsy for his parents or others at Stanford.
I’m not holding my breath waiting for all those that received donations to give back the money.
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Jojo
Jojo
3 years ago
Reply to  Matt3
They only had to put up something like $500k! It wasn’t clear how much they were responsible for IF SBF ran but I doubt it is much more than a few million, which they will be reimbursed from “dark” money taken out of the company and hidden away.
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Jojo
Jojo
3 years ago
This gets worser and worser for SBF. At 30 years old, I know I would not be able to face the prospect of decades in a jail, no matter how relatively comfy it might be in a white-collar prison. Odds on an escape to a country that won’t extradite, like Russia or suicide seem high to me.
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TexasTim65
TexasTim65
3 years ago
Reply to  Jojo
I doubt he does decades in jail.
The hundreds of millions he spent on political bribes will come in handy because there is no way they want him talking about all that in court. In exchange for pleading guilty and not speaking in court he will get a very light sentence.
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Mish
Mish
3 years ago
Reply to  TexasTim65
I suspect a 20-year sentence
How much he serves, I do not know.
Let’s see.
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Doug78
Doug78
3 years ago
Reply to  Mish
Madoff was sentenced to 150 years in jail. SBF did similar enough things but for a lessor amount of time so he will get more than 20 years but not 150 years. The money he spent on political influence will probably be clawed back so that good will risks to turn into a lot of bad will.
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Jojo
Jojo
3 years ago
Reply to  Doug78
It’s already being clawed back. Many politicians and PACS have been returning the money they received. To those that haven’t yet done so voluntarily, formal requests/orders have been made to return the money or they will be sued for it. Today, SBF received 4 more indictments for flagrant campaign contributions. They may give him the chance to do an Epstein exit.
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Doug78
Doug78
3 years ago
Reply to  Jojo
Not all. Some say they already spent it so they can’t give it back.
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Jojo
Jojo
3 years ago
Reply to  Doug78
From I read, they will be forced to return all the money, since it was considered stolen. They will need to get the money one way or the other. Beg for it or borrow it or face prosecution.
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Doug78
Doug78
3 years ago
Reply to  Jojo
Yes they will have to give it back. Even the charities will have to but it will take years.
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vanderlyn
vanderlyn
3 years ago
Reply to  TexasTim65
i made a ton of money betting my naive pals that jon corzine would never see prison. this kid SBF is a nothing. but his parents and MIC background he’s spawned from is serious, so i could see him negotiating a nothing sentence and none of the politicians go down. hope i am very wrong. i just see no justice in this very sick and evil empire we have. no mention that much of his dough probably came from ukraine sewer via the military industry billions. with crypto it will take a century to figure out where it all went. he cozied up to the most powerful men in world. his parents in the club. i think the real story is his parents used him as a useful idiot. i mean his father accompanied him on all his appearances to the hill ovder the years. he’s a useful idiot.
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Winn
Winn
3 years ago
Reply to  Jojo
I doubt he will be jailed. His crime is less than paedophiles’ led by Jeffery Epstein.
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Avery
Avery
3 years ago
Who are the Edgar Bergens behind the Charlie McCarthies (Sam & Caroline)?
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