FTX Files For Bankruptcy. What will be the effect of this?

[TheCount]

Binance next?

[devil21]

Sam Bankman-Fried Arrested In The Bahamas, Charged With Wire/Securities Fraud And Money Laundering
Tyler Durden's Photo
by Tyler Durden
Tuesday, Dec 13, 2022 - 06:11 AM

Update (8:35pm ET): According to the NYT, the charges against SBF which in an indictment which will be unsealed on Tuesday included wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. Of course, SBF should also be charged for talking too damn much and adding 15 years to his sentence by being a megalomaniac sociopath, but we'd take attempted bribery of the entire Democratic Party instead.

A lawyer chimes in, pointing out that according to federal sentencing guidelines, SBF could be looking at approximately 612,000 years in prison.

It's very worth noting that what SBF (and soon others) is being charged with is almost exactly what Ken Griffin and his Citadel stock market empire does on a daily basis and has been doing for many years. The Citadel market maker arm controls (rigs) stock prices for the benefit of Citadel's hedge fund arm (and other hedge funds), which Griffin then uses his hedge fund's profits from the rigging to bribe politicians. In Citadel's latest financial disclosures, Citadel market maker has facilitated the "sale" of $65 BILLION worth of stock, while collecting fees for those "sales", that Citadel has not actually located and delivered to buyer's accounts. In other words, fake shares fill stock broker accounts thanks to Citadel. $65 BILLION sold but never delivered!

SBF is a piker compared to Griffin. Yet Griffin walks free every day while robbing stock market participants blind. SBF looks like merely a Madoff-esque scapegoat to deflect from much, much bigger thefts and fraud perpetrated by even more connected insiders, and also you see the CFTC, SEC, etc all piling on now. On page 1 of this thread I posted how those same orgs were part and parcel to the FTX theft and fraud, so they now have to look like they weren't involved with it and are "doing their jobs", while also drowning out the apparent Ukraine>Dem money laundering operation that will likely never be spoken about officially.

[Anti Globalist]

My guess is Bankman is either going to get a slap on the wrist or he'll be Epsteined.

[Anti Federalist]

Sam Bankman-Fried did not kill himself.

[Occam's Banana]

"I love it when people say that Ayn Rand's villains were too over-the-top and unrealistic." -- Michael Malice

https://twitter.com/RAZ0RFIST/status...89470193197056

[devil21]

repost of page 1 twitter thread detailing all the sordid connections between the FTX/blockchain/regulations players:

https://twitter.com/jagoecapital/sta...30378411618304

-------------------------------------

"The potential hack began around the same time @FTX_Official
made a tweet about their Chapter 11 filings"

1500 Bahamas "clients" were allowed to withdraw $100M+ while average investors were locked out of accounts the day before bk was declared.

----------------------------------------
What no one ever asks is "why was Enron?" "Why was Madoff?" "Why was FTX?"

The answer is simple. They were avenues for money laundering investor's money to build out end result projects. For example, who realizes that the Enron fraud literally built out India's electrical and communications infrastructure? Enron disappears as a paper investment vehicle (a few people allegedly go to Club Fed) and investors are left with nothing.....but the infrastructure built with investor's money remains! India's electrical and coms grid is still there to this day.

[Suzu]

repost of page 1 twitter thread detailing all the sordid connections between the FTX/blockchain/regulations players:

Same thread, minus a few distractions:
https://threadreaderapp.com/user/JagoeCapital

[Swordsmyth]

Binance Halts Withdrawals Of USDC Stablecoin, Amid Surge Of Withdrawals

https://www.thefinancialtrends.com/2...f-withdrawals/

[acptulsa]

[devil21]

Gamestop saga and FTX may be interconnected by the use of FTX's "tokenized stocks". (Fair warning, understanding the link contents requires understanding stock market and short selling operations)

https://www.thestreet.com/memestocks...kenized-shares

[Swordsmyth]

Bahamian Liquidators Fight To Be Given Access To FTX IT Systems Which Allow Asset Removal

https://www.thefinancialtrends.com/2...asset-removal/

[acptulsa]

[Swordsmyth]

FTX CTO Wang And Alameda CEO Ellison Plead Guilty and Flip

https://www.thefinancialtrends.com/2...ilty-and-flip/

[dannno]

Sam Bankman-Fried Likely To Be Transferred To The Same Jail Where Jeffrey Epstein Allegedly Committed Suicide
https://www.eviemagazine.com/post/sa...pstein-suicide

[Marenco]

Sam Bankman-Fried Likely To Be Transferred To The Same Jail Where Jeffrey Epstein Allegedly Committed Suicide
https://www.eviemagazine.com/post/sa...pstein-suicide

[Brian4Liberty]

https://twitter.com/VivekGRamaswamy/...27202466009089

[Brian4Liberty]

https://twitter.com/VivekGRamaswamy/...27202466009089

Apparently the government was willing to accept as bail a brand new crypto-coin that SBF just created yesterday...

[Swordsmyth]

FTX Founder Released On $250 Million Bond

https://www.thefinancialtrends.com/2...-million-bond/

[devil21]

It gets better. The judge assigned to the SDNY trial is wife of the BlockFi/FTX merger advisory law firm's partner.
Corruption, conflicts of interest, memory-holing of inconvenient info, ietc continue on.

https://wallstreetonparade.com/2022/...-blockfi-deal/


edit on 12-27
New judge assigned. Even spicier since he's both tied into Trump and Epstein! SDNY sure is a busy district these days.
https://www.reuters.com/legal/bankma...ng-2022-12-27/

Dec 27 (Reuters) - Sam Bankman-Fried's criminal case over the collapse of his FTX cryptocurrency exchange has been reassigned to a judge recently known for handling defamation lawsuits against former U.S. President Donald Trump and a sexual abuse lawsuit against Britain's Prince Andrew.

[acptulsa]

[Swordsmyth]

Bahamian Authorities Seized $3.5 Billion In FTX Assets

https://www.thefinancialtrends.com/2...in-ftx-assets/

[Swordsmyth]

Disney’s midnight CEO ouster: A tale of corruption, ESG, politics, & possible FTX contagion
https://www.zerohedge.com/news/2022-...-ftx-contagion

[devil21]

Every time I think this whole FTX thing can't get any more corrupt, at least by appearance of massive conflicts of interest, something new surfaces, thanks to WSOP's research. It's clear that this is being very, very stage managed and the disassembly of FTX is essentially scripted by the same entities that built it.

The law firm that handled most of the legal framework of constructing and ongoing advisory of the FTX empire, including while it was collapsing, was then placed as trustee of the bankruptcy and is being handsomely paid with remaining investor funds! FTX's general counsel previously worked for the firm before moving to FTX.

https://wallstreetonparade.com/2023/...y-proceedings/

Yes, despite its intimate role in helping to build the Sam Bankman-Fried house of cards, Sullivan & Cromwell has somehow managed to become in charge of the bankruptcy process of the collapsed firm. According to Bankman-Fried’s draft testimony prepared for a House Financial Services Committee hearing and released by Forbes, “Sullivan & Cromwell was one of the primary external law firms that represented FTX US as well as FTX International” and was calling the shots as the firm collapsed, including picking the new CEO, John Ray. Bankman-Fried was arrested on the day he was scheduled to testify and, thus, did not make it to the hearing to deliver this testimony. much more at link

[Swordsmyth]

FTX Recovers $5 Billion In Assets

https://www.thefinancialtrends.com/2...ion-in-assets/

[devil21]

FTX Recovers $5 Billion In Assets

https://www.thefinancialtrends.com/2...ion-in-assets/

Gotta pay the same attorneys that built the ponzi while they unwind the ponzi. Can't have attorneys going hungry, can we? The horror of Hampton's beach houses with empty pantries. That shall not stand.

[Swordsmyth]

Scaramucci Invests In Crypto Firm Formed By Ex-FTX Chief

https://www.thefinancialtrends.com/2...-ex-ftx-chief/

[Swordsmyth]

Crypto-Lender Genesis Files For Bankruptcy

https://www.thefinancialtrends.com/2...or-bankruptcy/

[Swordsmyth]

Sam Bankman-Fried Offshore Entity Emergent Fidelity Files Chapter 11

https://www.thefinancialtrends.com/2...es-chapter-11/

[Swordsmyth]

FTX Lobbying and Donations
Here is all the members who have received donations from FTX members, and their current status on returning donations.

https://unusualwhales.com/politics/article/senate_ftx

[CaptUSA]

Interesting new charges added to this cat...


Sam Bankman-Fried paid over $40 million to bribe at least one official in China, DOJ alleges in new indictment

https://www.cnbc.com/2023/03/28/sam-...ndictment.html

FTX co-founder Sam Bankman-Fried paid out tens of millions of dollars worth of bribes to at least one Chinese government official, federal prosecutors alleged in a new indictment Tuesday.

The indictment said accounts belonging to Bankman-Fried’s hedge fund, Alameda Research, were the target of a freezing order from Chinese police “in or around” November 2021.

The indictment alleges that Bankman-Fried and others “directed and caused the transfer” of at least $40 million in cryptocurrency “intended for the benefit of one or more Chinese government officials in order to influence and induce them” to unfreeze some of these accounts.

Bankman-Fried and his associates considered and tried “numerous methods” to unfreeze the accounts, which contained around $1 billion worth of cryptocurrency, prosecutors allege. Ultimately, after both legal and personal efforts failed, Bankman-Fried agreed to and directed a multimillion-dollar bribe to have the frozen accounts unlocked, prosecutors alleged. <it worked>

Bankman-Fried’s hedge fund used the unfrozen assets to continue to fund Alameda’s loss-generating trades, continuing on what the government says was a fraud upon customers and investors for another year. FTX and Alameda imploded in November 2022 after concerns about their balance sheet turned into a veritable bank run. Bankman-Fried now faces a federal indictment and civil charges from both the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The charges indicate that new evidence has been obtained by the federal government about Bankman-Fried’s international dealings, and come one day after U.S. regulators slapped crypto exchange Binance with allegations of facilitating terrorist financing and violations of U.S. derivatives law.

Meanwhile, Bankman-Fried’s collapsed FTX remains mired in Delaware bankruptcy court proceedings.

A spokesperson for Bankman-Fried did not immediately respond to CNBC’s request for comment.