Who is Sam Bankman-Fried and Why Are The Fed's After Him?Prev Topic Next Topic

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GiveFive

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Dec 2, 2022, 9:11 am

There might be a few LP members that have heard the name 'Sam Bankman-Fried' in the news but haven't been following the story. Although Sam's story has nothing to do with the lottery, it's a doozie of a story, so I thought I'd put something out here about what he did, but explain it in plain English as it's a very complex financial story involving crypto-currency's such as Bitcoin.

Sam is a thirty something type of guy with a huge head of hair...a real "mop top". He was also a billionaire, but he now says he has less than $100,000 in the bank. His father's last name is Bankman and his mother's last name is Fried, hence the last name of Bankman-Fried. They're both Yale educated law professors at Stanford University. Sam is an MIT graduate and he also has the reputation of being a genius. In the past he has donated millions of dollars to The Democratic Party.

Sam started a Crypto-currency Exchange called FTX. (FTX paid for an ad during the Superbowl staring Larry David) Sam's crypto exchange was the third largest exchange in the crypto world. A cryto exchange is a lot like a stock exchange in that you can buy and sell crypto-currency on it instead of buying and selling stocks. People buy/sell Bitcoin as well as other crypto-currencies, and this is the business that made Sam a billionaire. FTX is headquartered in The Bahama's (for income tax purposes/advantages) and that's where Sam himself is currently located.

FTX crashed and burned and is now in bankruptcy. That happened because Sam took millions of dollars of depositors/investors money without their knowledge, gave it to his on again/off again girlfriend who was The CEO of an investment company, and they invested it in high risk instruments that didn't work out. When word got out that Sam's risky investments were a huge flop, there was a run by depositors on FTX, but there was no money left to give the depositors their money back. Some people said they had lost as much as two million dollars that they had deposited in the crypto exchange. Other depositors said their life savings went up in smoke.

What Sam did was theft, plain and simple. So The Fed's will likely charge Sam with conspiracy to commit wire fraud and try to extradite him to The USA from The Bahama's. It's worth noting that in terms of dollars and cents this crime is the biggest financial crime in history. It's even bigger than Bernie Madoff's Ponzi scheme.

Good luck Sam! You're gonna need it. Can you say 'Leavenworth' or 'San Quentin'?? Hard for me to feel sorry for Sam or anybody that lost money in this fiasco. Crypto Currency is unregulated and is very risky. It's dangerous to invest in yet some said they lost millions. Must be nice to be able to afford a two million dollar hit to the pocketbook. To each his own, but there is no way I'd get involved with crypto. G5

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OhSoClose

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Dec 2, 2022, 9:51 am

Excellent summary, G5. Ponzi scheme, indeed. It reminded me of somebody who started a lottery pool club and said give me your money because I know I can win big and double or triple your money quickly. And the organizer does have a couple hits early on, which he brags about loudly and gets more investors pouring in. But then the wins stop coming and as a response, he starts making more and bigger bets to get that money back, but the losses keep coming over and over until the investors' money is gone and there's zero equity left.
GiveFive

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Dec 2, 2022, 10:35 am

Quote: Originally posted by OhSoClose on Dec 2, 2022
Excellent summary, G5. Ponzi scheme, indeed. It reminded me of somebody who started a lottery pool club and said give me your money because I know I can win big and double or triple your money quickly. And the organizer does have a couple hits early on, which he brags about loudly and gets more investors pouring in. But then the wins stop coming and as a response, he starts making more and bigger bets to get that money back, but the losses keep coming over and over until the investors' money is gone and there's zero equity left.

Thanks....

There is another aspect or 'twist' to the "SBF" story that I didn't put in my post above.

When The Fed's investigate either a suspected financial crime or a crime that was actually committed, FBI forensic accountants are deployed to "follow the money trail" by examining any/all financial records. That technique is as old as the hills, but this time it won't be so easy for The Feds. It's going to way more complicated.

The crypto currency world is very new and the whole thing is based upon new software technology. Bitcoins exist only in a computer database and the software developers that built "The Blockchain" software to facilitate the transactions between Bitcoin buyers and sellers designed it so that those transactions cant be traced. Blockchain is essentially a software ledger (at least that's how I understand it) and once a transaction has been completed, all visibility to it is lost forever.

SBF was operating a crypto-currency exchange which was heavy into using The Blockchain. Criminals involved in money laundering love The Blockchain because all of their nefarious activities cant be traced.... This is the principle reason why buying and selling crypto is considered so risky. Nobody can look back in the records and see what actually happened. This whole fiasco will serve to trigger only one thing, and that's make Congress start discussions about how it can be regulated. Just like The U.S. Securities and Exchange regulates the stock market, the unregulated crypto market may soon find itself facing a lot of new laws passed by Congress to regulate it. G5

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sam9009

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Dec 2, 2022, 10:47 am

I think SBF is a puppet and the mastermind is Dan Friedberg

Invictus maneo
OhSoClose

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Dec 2, 2022, 1:06 pm

I just located The FTX Official youtube channel. All of those commercials they ran are still up there. Just watched the one with Steph Curry saying "with FTX I don't need to be an expert to trade crypto safely." Wow, those commercials haven't aged well.
Stat$talker

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Dec 2, 2022, 1:09 pm

Quote: Originally posted by GiveFive on Dec 2, 2022
There might be a few LP members that have heard the name 'Sam Bankman-Fried' in the news but haven't been following the story. Although Sam's story has nothing to do with the lottery, it's a doozie of a story, so I thought I'd put something out here about what he did, but explain it in plain English as it's a very complex financial story involving crypto-currency's such as Bitcoin.

Sam is a thirty something type of guy with a huge head of hair...a real "mop top". He was also a billionaire, but he now says he has less than $100,000 in the bank. His father's last name is Bankman and his mother's last name is Fried, hence the last name of Bankman-Fried. They're both Yale educated law professors at Stanford University. Sam is an MIT graduate and he also has the reputation of being a genius. In the past he has donated millions of dollars to The Democratic Party.

Sam started a Crypto-currency Exchange called FTX. (FTX paid for an ad during the Superbowl staring Larry David) Sam's crypto exchange was the third largest exchange in the crypto world. A cryto exchange is a lot like a stock exchange in that you can buy and sell crypto-currency on it instead of buying and selling stocks. People buy/sell Bitcoin as well as other crypto-currencies, and this is the business that made Sam a billionaire. FTX is headquartered in The Bahama's (for income tax purposes/advantages) and that's where Sam himself is currently located.

FTX crashed and burned and is now in bankruptcy. That happened because Sam took millions of dollars of depositors/investors money without their knowledge, gave it to his on again/off again girlfriend who was The CEO of an investment company, and they invested it in high risk instruments that didn't work out. When word got out that Sam's risky investments were a huge flop, there was a run by depositors on FTX, but there was no money left to give the depositors their money back. Some people said they had lost as much as two million dollars that they had deposited in the crypto exchange. Other depositors said their life savings went up in smoke.

What Sam did was theft, plain and simple. So The Fed's will likely charge Sam with conspiracy to commit wire fraud and try to extradite him to The USA from The Bahama's. It's worth noting that in terms of dollars and cents this crime is the biggest financial crime in history. It's even bigger than Bernie Madoff's Ponzi scheme.

Good luck Sam! You're gonna need it. Can you say 'Leavenworth' or 'San Quentin'?? Hard for me to feel sorry for Sam or anybody that lost money in this fiasco. Crypto Currency is unregulated and is very risky. It's dangerous to invest in yet some said they lost millions. Must be nice to be able to afford a two million dollar hit to the pocketbook. To each his own, but there is no way I'd get involved with crypto. G5

Soundz like the same RaTz that ran wit Jason Kurland...

And remindz me of anuther industry that needz Federal Regulating...
Raven62

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Dec 2, 2022, 1:42 pm

Can you get scammed with cryptocurrency?

In fact, crypto romance scammers conned victims out of $139 million last year (2021), according to a 2022 report by the Federal Trade Commission (FTC).

5 Crypto Scams To Watch Out For

A mind once stretched by a new idea never returns to its original dimensions!

Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

The best way to learn is to never stop being an Experiential Student!
darthfury78

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Dec 4, 2022, 1:06 pm

Quote: Originally posted by Raven62 on Dec 2, 2022
Can you get scammed with cryptocurrency?

In fact, crypto romance scammers conned victims out of $139 million last year (2021), according to a 2022 report by the Federal Trade Commission (FTC).

5 Crypto Scams To Watch Out For

Sam started a Crypto-currency Exchange called FTX reminds me of the dotcom bubble of the late 1990's to early 2000's. I remember those days when the promise that B2B e-commerce would change the world forever. Instead, anyone who invested their life savings into those companies lost over 90% for their money never to recover from the experience. History repeats itself yet again....
eddessaknight

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Dec 4, 2022, 3:57 pm

Quote: Originally posted by Raven62 on Dec 2, 2022
Can you get scammed with cryptocurrency?

In fact, crypto romance scammers conned victims out of $139 million last year (2021), according to a 2022 report by the Federal Trade Commission (FTC).

5 Crypto Scams To Watch Out For

Very sensible advice, Raven,

Adapted From timeless classical Greek:

"Those who $eek the Golden Fleece, are the ones who get FLEECED themselve$
Think

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Dec 4, 2022, 6:52 pm

Not a lawyer but am wondering, from the interviews I have seen from him, if Mr. Fried hasn't clearly implicated himself in criminal negligence at the very least.

I better put this in my signature before the ministry of disinformation bans it! I'd tweet it but I have never had a twitter or facebook account (and never will)

"Democracy Dies In Darkness" recognizes that a democracy cannot survive and thrive without an electorate informed with facts and truth by a free and independent press.

When government or corporate interests try to control or intimidate the media for their own purposes, it is the first steps toward a totalitarian or fascist state.

Paul Ivice
eddessaknight

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Dec 4, 2022, 8:35 pm

Quote: Originally posted by Think on Dec 4, 2022
Not a lawyer but am wondering, from the interviews I have seen from him, if Mr. Fried hasn't clearly implicated himself in criminal negligence at the very least.

Many thanks for sharing those highly relevant contributions. Think

Re:Judeo/Christian Western Civilization

Further more, I put before you for following consideration:

"When you see that trading is done, not by consent, but by compulsion.

When you see that in order to produce, you need to obtain permission from men who produce nothing.

When you see money flowing to those who deal, not in goods, but in favors.

When you see that men get richer by graft and pull, than by work and your laws don't protect you against them, but protect them against you.

When you see corruption being rewarded and honesty becoming self-sacrifice,

you may know that your society is doomed"

- AYN RAND

-
GiveFive

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Dec 6, 2022, 9:38 am

Quote: Originally posted by Think on Dec 4, 2022
Not a lawyer but am wondering, from the interviews I have seen from him, if Mr. Fried hasn't clearly implicated himself in criminal negligence at the very least.

Last week early one morning, I saw SBF being interviewed by CNBC's Andrew Ross Sorkin. The first thing that came to my mind was "Why in the world is his lawyer allowing him to be interviewed on TV????"

Later that same day on The FOX Business Channel, they showed segments of Sorkin's interview with SBF. After that, Charlie Gasparino started discussing The FTX/SBF fiasco with Martha MacCallum. The very first words out of Gasparino's mouth were "You have to wonder why his lawyers are allowing him to speak to the media."

If you want to follow this unfolding story, I recommend watching FOX Business' Charlie Gasparino. He's been the sole reporter that that can translate the entire mess into plain English that any layman can easily understand. G5

Play Smart!
Stat$talker

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Dec 6, 2022, 10:45 am

Quote: Originally posted by GiveFive on Dec 6, 2022
Last week early one morning, I saw SBF being interviewed by CNBC's Andrew Ross Sorkin. The first thing that came to my mind was "Why in the world is his lawyer allowing him to be interviewed on TV????"

Later that same day on The FOX Business Channel, they showed segments of Sorkin's interview with SBF. After that, Charlie Gasparino started discussing The FTX/SBF fiasco with Martha MacCallum. The very first words out of Gasparino's mouth were "You have to wonder why his lawyers are allowing him to speak to the media."

If you want to follow this unfolding story, I recommend watching FOX Business' Charlie Gasparino. He's been the sole reporter that that can translate the entire mess into plain English that any layman can easily understand. G5

"You have to wonder why his lawyers are allowing him to speak to the media."

As I understand the current status of this incident..SBF hasn't been Criminally charged as yet..His Lawyers know that for him to show signs of apprehension to discuss what happened, could be used against him , if and when in the future, he would be Officially charged..siteting that such early on apprehension proves that he knew what he did was wrong or at least unethical in the Industry!

Subtle PR work, or potential future Jury pool influencing..?..All involved know the Feds are watching..

"Smmile, You're on Federal Camera"

-Stat$talker
GiveFive

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Dec 6, 2022, 11:10 am

Quote: Originally posted by Stat$talker on Dec 6, 2022
"You have to wonder why his lawyers are allowing him to speak to the media."

As I understand the current status of this incident..SBF hasn't been Criminally charged as yet..His Lawyers know that for him to show signs of apprehension to discuss what happened, could be used against him , if and when in the future, he would be Officially charged..siteting that such early on apprehension proves that he knew what he did was wrong or at least unethical in the Industry!

Subtle PR work, or potential future Jury pool influencing..?..All involved know the Feds are watching..

"Smmile, You're on Federal Camera"

-Stat$talker

Good points Stats...

Could be SBF is trying to get a head start on influencing a jury.

You're correct SBF has not been charged with any crime....not yet anyway. That said, The Fed's are looking at the whole mess, and my guess is they are proceeding slowly so as to be in a position to present a solid case to a US Attorney that the prosecutor believes there is enough evidence to present the case to a Federal Grand Jury for an indictment, and ultimately gain a conviction in a courtroom in front of a jury.

The net of it all is SBF took money that was not his. He put that money into very risky investments and those investments blew up. When I say he 'took money' I'm saying that he used investor/depositors money without their knowledge, which is theft. I cant take property that belongs to you without your knowledge and end up in a position of not being able to return your property to you. That's theft all day long and theft is a crime that has been around for centuries.

If The Fed's charge him with a crime and get an indictment, their next step would be to have SBF extradited to The US from The Bahama's. The whole case is complicated by the fact that it involves crypto-currency which many people don't know much about. SBF is currently in The Bahama's where his corporation is located because of the favorable income tax treatment it can benefit from.

SBF gave the money he took from his clients to his sometimes but sometimes not girlfriend who is the CEO of some type of investment firm. She put that money into those very risky investments that went south. She could very well be charged with a crime too. G5

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GiveFive

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Dec 6, 2022, 11:20 am

I've been thinking about SBF talking to the media.

There are three possibilities I can think of why he'd do it.

One, he doesn't have an attorney which is absolutely crazy if that's the case. Hard for me to believe he isn't lawyered up by now. (His father is a Yale Law School educated professor of law at Stanford University)

Two, His lawyer told him it's OK to go ahead and talk to the media. Yeah right! All lawyers tell their clients to go ahead blab their guts out to the press. If you think that's true, there is a bridge for sale in Brooklyn I'd like to show you.

Three, his lawyer told him it's not OK to talk to the media but SBF did it anyway. If this is the case SBF sure aint the genius they say he is.

I cant wait to see how this all pans out....but it'll be years before we see the final results. G5

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