FTX - Massive Fraud

This deserves its own thread.

Each day there are new revelations about the massive fraud at FTX.  The U.S. has indicted Sam Bankman-Fried on multiple counts of mail and wire fraud, money laundering, and other crimes.  He sits in a jail in the Bahamas waiting for extradition.

The CEO appointed to lead FTX through bankruptcy has said the company engaged in "old-fashioned embezzlement."

https://www.yahoo.com/finance/news/ftx-ceo-says-company-engaged-in-old-fashioned-embezzlement-under-sbf-023334039.html

FTX CEO says company engaged in 'old fashioned embezzlement' under SBF

Alexis Keenan · ReporterTue, December 13, 2022 at 9:33 PM

FTX’s bankruptcy-era CEO, John J. Ray III, appointed to shepherd the collapsed crypto exchange through Chapter 11 reorganization, testified on Tuesday that the company’s founder and former CEO, Sam Bankman-Fried, made multiple misstatements about his companies’ financials.

Ray, who oversaw Enron’s infamous corporate fraud, characterized FTX’s actions as “old fashioned embezzlement.”

“This is just taking money from customers and using it for your own purpose," Ray said. "Not sophisticated at all,” he said, explaining that what might have been sophisticated about the scheme was hiding it in plain sight.

Ray’s testimony may also have shed light on the theories that underlie the Justice Department's accusations against Bankman-Fried, who was charged with eight counts of wire fraud, securities fraud, and conspiracy in an indictment unsealed on Tuesday.


I'm shocked.  Shocked!


Not so smart… you never should go hide in the Bahamas.


He sounds far less creative than Ross Ulbricht, the creator of Silk Road, the dark web site that first facilitated the use of Bitcoin on a large scale to buy drugs shipped across the world.  A truly innovative entrepreneur, steeped in Libertarian philosophy, he is spending most of the rest of his life in federal prison.  


Jaytee said:

Not so smart… you never should go hide in the Bahamas.

FTX's headquarters were in the Bahamas.  They used a lot of company money to buy very expensive beachfront homes.


World Shocked That Man Running Business Based On Imaginary Money Might Be Fraud“Of all of the firms offering big returns on made-up money, this one seemed the most solid,” a resident of London said.


By Andy Borowitz


Soul_29 said:

World Shocked That Man Running Business Based On Imaginary Money Might Be Fraud“Of all of the firms offering big returns on made-up money, this one seemed the most solid,” a resident of London said.


By Andy Borowitz

the whole thing seemed like satire from the start. Unregulated currency? What could possibly go wrong?

Is the moral of this story caveat emptor? There's a sucker born every minute? Both?

vampire


My favorite cryptocurrency is dogecoin, which according to wikipedia:

It is considered both the first "meme coin", and, more specifically, the first "dog coin". Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the face of the Shiba Inu dog from the "doge" meme as its logo and namesake.

...

Dogecoin.com promotes the currency as the "fun and friendly Internet currency", referencing its origins as a "joke".[9] Software engineers Billy Markus and Jackson Palmer launched the satirical cryptocurrency as a way to make fun of Bitcoin and the many other cryptocurrencies boasting grand plans to take over the world.

despite that, at one point it actually spiked in value. A fool and his/her money I guess.


ml1 said:

My favorite cryptocurrency is dogecoin, which according to wikipedia:

It is considered both the first "meme coin", and, more specifically, the first "dog coin". Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the face of the Shiba Inu dog from the "doge" meme as its logo and namesake.

...

Dogecoin.com promotes the currency as the "fun and friendly Internet currency", referencing its origins as a "joke".[9] Software engineers Billy Markus and Jackson Palmer launched the satirical cryptocurrency as a way to make fun of Bitcoin and the many other cryptocurrencies boasting grand plans to take over the world.

despite that, at one point it actually spiked in value. A fool and his/her money I guess.

https://www.foxbusiness.com/markets/elon-musk-258b-dogecoin-lawsuit-adds-plaintiffs

The $258 billion racketeering lawsuit against Elon Musk has expanded, adding seven new investor plaintiffs and six new defendants.

Musk is accused of running a pyramid scheme to support the cryptocurrency Dogecoin.

Named in the amended complaint filed on Tuesday night in Manhattan federal court is Musk, his electric car company Tesla Inc, his space tourism company SpaceX, his tunnel construction business Boring Co. and others.

The suit claims they intentionally drove up the value of Dogecoin.


yahooyahoo said:

https://www.foxbusiness.com/markets/elon-musk-258b-dogecoin-lawsuit-adds-plaintiffs

The $258 billion racketeering lawsuit against Elon Musk has expanded, adding seven new investor plaintiffs and six new defendants.

Musk is accused of running a pyramid scheme to support the cryptocurrency Dogecoin.

Named in the amended complaint filed on Tuesday night in Manhattan federal court is Musk, his electric car company Tesla Inc, his space tourism company SpaceX, his tunnel construction business Boring Co. and others.

The suit claims they intentionally drove up the value of Dogecoin.


ml1 said:

yahooyahoo said:

https://www.foxbusiness.com/markets/elon-musk-258b-dogecoin-lawsuit-adds-plaintiffs

The $258 billion racketeering lawsuit against Elon Musk has expanded, adding seven new investor plaintiffs and six new defendants.

Musk is accused of running a pyramid scheme to support the cryptocurrency Dogecoin.

Named in the amended complaint filed on Tuesday night in Manhattan federal court is Musk, his electric car company Tesla Inc, his space tourism company SpaceX, his tunnel construction business Boring Co. and others.

The suit claims they intentionally drove up the value of Dogecoin.

His SNL appearance is a massive example of this.


Crypto currency Chanukah gelt is now a thing.



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