Topic: Sam Bankman-Fried has been released on bail - page 2. (Read 256 times)

It would be a great achievement if users actually learned that holding coins on exchanges is a bad idea.

While SBF is the fraudster and should be punished, he merely picked up the money and put them in his pocket, but why was the money sent to him in the first place? An exchange is not a custodial solution, it's not a safe or a hardware wallet, it's what the name suggests: a place to make a transaction and leave, but people were ignoring all the red flags and calling this idiot "the most generous billionaire" when he never was a billionaire in the first place. He had billions in worthless shitcoins that, if dumped on the market, would generate something like 10 million each and crash the price. The king was naked from the beginning all the way to the end, but he had to be legit since Kevin O'Leary vouched for him, right?

Hopefully the court is to still handle his case and have it be a swift ruling. The amount of damage these people have made not only to the people they scammed but more importantly the cryptocurrency market is something that we may carry for many years. I really hate the way media portrays him as well. Making him look as if he really isn't at fault with happened and as if he's being pinned the blame while the real perpetrators are getting away at the crime scot-free. This narrative we will not buy anymore.

I don't think Sam will evade the trial, but I do feel that justice may somehow be favorable to him.  I think that this will be the time his effort of supporting influential people in the US will take effect.  But of course, they will do it slowly so that people won't take notice.

It is really a biased world when the newspaper focus on the other issue and not to the fault SBF had done when reporting this kind of stuff just to divert people attention.  They can do it in a separate articles but intentionally combined the two to cover up wrong things SBF done.

I generally support bail, given that people shouldn't be imprisoned before they are convicted, and given that the sum is pretty big (so I don't think he'll run).
But substance abuse and mental health treatment? If these are requirements for bail, might it mean Bankman-Fried's defence strategy is to prove that he, suffering from addiction and mental health issues, wasn't quite capable of recognizing his actions (regarding FTX) and thus isn't liable for criminal responsibility? IMO, that's the most interesting part in this news. I don't think such treatment is a standard bail requirement, so it might shed light on how the trial will play out.

Who are/were the external auditors of FTX's financial statements. Not only should they be held accountable but they should also be part of the trial.

Am I the only one who believes there is a risk he tries to escape?
Even though he had proven himself to feel rather disregard of the situation he created, I assume he is not fully willing to face the consequences of his actions.
It is like the story of the Terra-Luna founder Do Kwon, is he not still at large after an arrest warrant was issued ?

From my point of view this guy should have been held in jail without the chance of bail.

I'd say customer deposits should be restricted (i.e. can't be used for any other purpose than to fund withdrawals or to deduct CEX fees) and customers should be at the top of creditors' priority in case of insolvency. But I don't think corporate/customer funds can be separated entirely. I don't think anyone would mind if corporate reserves are inter-mingled with customers' funds when some of the customers' funds get hacked and stolen.
And for the proper financial audit to make sense, it'll have to cover ALL assets and liabilities, otherwise, an entity could be just moving funds around to appear solvent when it's not.

In crypto, once an incident occurs, it cannot be reversed. So whether Sam Bankman-Fried is released from prison makes no difference. The FTX incident brought down the entire cryptocurrency market, affecting many users. Rather, Sam Bankman-Fried should be heavily punished so that others will be cautious when considering doing something wrong with user funds.

we all know the SBF on bail news. so not much to talk about there

however the linked article and SEC try to say dont trust proof of reserves because those audits dont include the hosting corporations asset and liabilities. where by PoR is just about customers reserves and wallets to back the customer balances

WELL here is the thing
corporations should not be co-mingling customer assets with corporate assets and so there should be a separation of asserts and a separate audit just for customers assets

yes having a separate corporate audit of corporates financial status also helps weigh how viable a corporation is to be sustainable and continue having their service open, or how close to debt they are to risk bankruptcy which then foolishly locks up customer assets for years and then ends up co-mingling the assets with corporate liabilities to then share out..


a good regulation is customer funds should be separate from a corporations share holders/creditors

thus funds get treated differently and customers can get what they deposited out, away from the drama of a corporate bankruptcy

albeit. with all that said a PoR may prove there are coin reserves that cover balances. however a PoR does not reveal motivations and CEO mindset about plans for the future of being greedy or malicious with regards to customers value
(a PoR does not reveal if a CEO wants to retire to a exotic island with users value)

Former FTX CEO Sam Bankman-Fried has been released on bail after appearing in U.S. federal court in New York on Thursday. Bankman-Fried was told he can live with his parents on $250 million bail secured in part by their Palo Alto, California, house. His release also includes a long list of requirements for him to remain free while he faces charges. He's not allowed to make financial transactions of more than $1,000, can't open new lines of credit, can't leave the house except to exercise and must go through substance abuse and mental health treatment, according to the agreement.

More @ https://www.coindesk.com/markets/2022/12/23/first-mover-americas-sec-scrutnizes-crypto-audits-sbf-gets-bail/