Topic: When will Sam Bankman-Fried go to jail? - page 9. (Read 2439 times)

@Ale88. Agreed and after everything that has transpired, also assuming from all known information that Binance is only a shitcoin exchange very much different from what FTX was which might have been created as a criminal enterprise from the beginning. It is not comparable. Binance is a liquidity providing service for holders and traders to exchange their coins to other coins or fiat currencies very much similar to traditional currency exchanges.

With all due respect, I would never put Binance and FTX on the same level, we're talking about two completely different exchanges and persons behind them. SBF came out pretty much from nowhere and in 1-2 years he already an exchange that was considered better than Kraken, Bitfinex, and other exchanges that have been online for a long time. I had some FTT but since the beginning everything looked too good to be true, with this young guy claiming to donate everything in charity etc etc. CZ makes a ton of money thanks to the commissions but he really bet everything on crypto and actually believe in them, SBF just used them to make more money, that's it, he never cared about this world.

I don't have ideas about Sam Bankman-Fried go to jail based on many scam exchange, casino gambling and altcoin price drastically dump but the owner still healthy and enjoying with their profit run away from investor. FTX is not first exchange got scam although have good reputation and second standing exchange position based on coinmarket cap standing but still not any reason yet for making Sam Bankman under arrest.

the absence of legal basis could be one of the reasons why it is difficult to bring this case to the realm of law and make the owner of FTX Exchange Sam Bankman-Fried go to jail. Better with independent law playing here, if any one here know with them make warning and threat about how much money do you loss in FTX.

It is also very much similar to those centralized services like Blockfi which are really just custodied cryptobanks.

However, because these centralized, custodied cryptobanks and exchanges will always continue to exist, would it not be time for the bitcoin community to accept and encourage the research on Defi and other noncustodial methods for swapping and yield generating services? This would at the very least make of use the advantage of self custody.

I don't have and haven't ever had any.  Nor have I had any relationship with Blockstream either since I stopped working there in 2017, I think I've told you that before too.

Like FTX, Binance is another shitcoin casino.  Only clueless people do business with shitcoin casinos.  All Bitcoiners should avoid doing business with places that primarily generate revenue from selling shitcoins to idiots, and especially from places that offer margin for shitcoin trading.  The only kind of leverage that is potentially safe is physically settled options, anything else can easily leave the exchange insolvent.

Even if it doesn't do much to alleviate public confidence, it's still preferable to make an example of the perpetrator.  It could potentially reduce the number of copycats if the repercussions give them pause to think twice.  Or, at the very least, people won't believe there are zero consequences for ripping people off, which is what they risk occurring if they don't lock that scumsack up.

More compliance funds will flow into the crypto market with the strengthening of regulation. In the long run the FTX event has a positive impact on the development of the industry.

On the contrary, putting the bad guy in jail will not change anything, people's confidence in businesses is all about the environment of the business, not the already known perpetrator. The question is, are there still people like BSF in the crypto world, such should be fished out and sanity/regulation should be enforced to achieve the people's confidence. Binance has started by showing proof of funds, others should follow suit, which is one of the ways that people's confidence is boosted, not by jailing just a man that would not restore any money to the cryptosystem.

Are you referring to Sam Bankman-Fried Sir? Because if this is what you're talking about, I think it's still vague to happen right now, because first, SBF's mother is a lawyer and an influential person and also has a big connection, and then SBF also has a strong connection.

In addition to that, it seems that SBF is making his name even better by doing NYT (New York Times) which we are not sure if he paid for it. Even despite everything, his FTX business failed because of the billions he took from the funds of investors who invested in FTX as if nothing had happened. Also the FBI don't have yet strong evidence against this person, though it is actually sad in reality.

You sure are not the only one who sees that there are a number of users who could be part of the DCG family in the forum and they seem to side with the FTX vs Binance competition.

They literally apply the "if you can't beat them, join them" strategy which they could then be controlling the industry where we're going back to the old market dominated by big bad wolves.

I very much agree.

This is being shared on social media. I am not quite certain why there are some people who remain to assume that we are being antagonistic. We only want to spread truth and show everyone what is happening in reality.

Just a run on the bank hehehe. The Wall Street Journal, the New York Times, the Deal Book, they are spinning the storyline and covering the real story behind Sam.

Not so easy, if he stood up to expose the real mastermind behind the downfall, his life would be in danger. Once you get involved in politics, your life is no longer in your hands. It is important to note that in this case, the SBF remains the beneficiary, so there is no reason for him to betray those who back him. I wouldn't be surprised if in the future SBF gets involved in politics and becomes a politician of the US.

ok i stand corrected. i was doing quick search and some were saying he was getting famous in bitcoin trading while working for jane street 2014+
but then went solo and got more famous working for himself in 2017+

as for the $32b+ valuation
my belief is simply offering out XXX million FTT valueless tokens
where some investors bough up initial ~$400m for only less than XX thousand token. to give a market cap of $32b+ instantly even if only $400m changed hands.. much like most "funding rounds" hand over less money than the company valuation becomes
(not using exact numbers just random demo numbers for expressing an example)

this is not a critique or a poke. just a genuine question about the difference between gmax of 2016 and gmax of 2022

have you severed all ties with the DCG family(daughter: blockstream) or are you still part of their inner santum?

i genuinely ask because i might give you a break from seeing you as a threat if your not part of the corporate agenda of the barry silbert roadmap of bitcoin of the last 7 years.

and wondering if there is any contagion risk to yourself which you worry about in regards to the effects of FTX on DCG

Nah, you got your wires crossed.  He didn't have an mtgox account. I don't think there is any public evidence of him having any major interest in Bitcoin prior to 2017.

When they started promoting him in 2020 they claimed that the source of his claimed >10 billion dollar wealth was arbing Korean bitcoin exchanges in 2018-2020.  People quickly pointed out that this would have been obviously impossible so they quickly changed the story to Japanese exchanges-- which also didn't make sense given the amounts but at least some arb was possible there. You can still see evidence of the earlier lie if you google his name and the phrase "kimchi premium".

From recent disclosures we now know that indeed they never made money arbing Korean exchanges, and made a couple million "arbing" in Japan-- but mostly from the value of Bitcoin going up rather than the spread-- and they quickly lost it.

So the arb story was just a lie to build a fake wealth story to encourage other people to invest in his 'business'.

Careful with what you read there-- SBF gave liberally to media outlets and many of the people writing about him took money from him or are connected to parties that did.  At a minimum their ego is on the line: They could have easily called out the red flags early on but instead they breathlessly promoted him, so now they really want to spin that it wasn't obvious and that it wasn't necessarily intentional.  Plus no one in the media gets sued for sucking up to a scammer, but people do get sued for calling them out.  Really when you look at the facts without the spin why you find is that FTX was running a shitcoin casino, promoted on the back of fraudulent claims of wealth, that went massively short bitcoin long shitcoin (including through selling retail customers paper bitcoins that FTX never owned) and then suffered the predictable results.

Spinning it as just poor accounting makes zero sense because it provides no explanation for where the 8 billion in customer deposits, plus SBFs >10bn in claimed trading gains, plus several billion in outside investments actually went if it was just due to accounting errors.

This might become a reality only if Sam will tell the truth and expose the whole scheme behind FTX and Alameda. However, it appears that he will never expose the people behind him and those people are helping spin the storylines and covering up for Sam. Read all of the Wall Street Journal articles written about him after the collapse. Much of those articles are making it appear that he was not running a criminal, money laundering enterprise.

In any case, it would be in the concern of the cryptospace community to see Sam go to prison. The victims of this will be everyone of us because the government will begin creating stricter laws, require all users to KYC and might also demand exchanges to require that their users must be earning a certain yearly salary to be allowed to invest in the cryptospace.

one thing i keep hearing...

scam bankman fraud got famous 10+ years ago from arbitraging funds from us exchanges to a japanese exchange..
translation: he had funds in MTGox

i wonder how much of the MTGox bankruptcy has SBF funds because if he was making millions in 2012-14 that means there might be many btc hauled up in MTGox release coming soon(a few XX thousand coins back then= a few X thousand now.. possibly)

also when he acted as the liquidator as oppose to the liquidated. he bought up many defunct businesses where even though defunct businesses had alot of 'paper'(on the books) fiat debt, which it counldnt honour. those businesses still did have assets. which part of liquidation is to shift about and move. so im sure he has assets in those companies shuffled in to some side-pot stash somewhere

i hope that the regulators and investigators dont just look at the actions of "customer funds" of ftx 2022. but look at all the asset shuffles over the many years and link all hidden stashes of SBF

People have memories that are too short, right now there is a big movement to take back the custody of our coins, but as time passes and then a new bull market emerges many of those same people will get too greedy and will leave their coins at exchanges once again, and if a person like SBF creates another exchange no one will care at the time, so we are bound to see events like this happening in a recurring manner in this market for a very long time.

Although I won't place all the blame on FTX, I believe cryptocurrency will continue to experience trust issues with cases like this and bear markets can always have bad reactions to bad news. Bankman has shown such a disregard for the fraud's outcome. 5 senators prevented the probing of his action, after declaring bankrupcy he was still donating and it was observed that the parents acquired some housing properties lately worth hundred of millions of dollars. It seems no one has the courage to probe him. To avoid recurrence, we might need to avoid young developers who are deeply involved in politics.

I totally agree with you. This guy, thanks to the people that his parents know, won't go to jail simply because the law in this cases doesn't apply. Just the simply fact that he's still giving interviews etc is ridiculous, this guy is a criminal and yet he's allowed to do whatever he wants. The exchanges keep asking for more and more info about the users but then you can simply build your exchange, scam people, and be totally fine.

yep

the SEC can only regulate financial payment services.

however the CFTC has a broader scope. they can both regulates the services but also put regulations on the assets themselves
(quota's, quality control, lessen environmental impact, restrict who can invest (only professional investors)

for instance the CFTC along with the EPA put quotas on farming and quality of production. they can restrict which type of fertiliser and weed killer is used. etc.. all to ensure only whitelisted high quality traceable wheat enters the wheat commodity market

this is where if bitcoin is treated more as a commodity rather than an asset it opens the doors for the CFTC and the EPA. which meansin they can go after the mining industry and the the developers to do a PoS detonation(worse case, but possible)


when bitcoin was young 2009-2014 it was not deemed a currency meaning services were treated not as currency exchangers. but as merchants selling collectables(much like how NFT is not being regulated yet.
but since deemed as currency (lobbied under the false pretense of "mainstreaming". then SEC regulators found their way into the door
now if its changing to a commodity. CFTC gets it foot in the door

some will say "yea but what about the benefits that maybe a financial service can finally get an ETF and boom mainstream"

to which i reply "but what about them requiring all wallet developers to add code that meeds regulatory standard. or asks miners to not operate in certain locations or limit hashrate per location