Verbal Rally Reignited Between Musk & Warren

Elon Musk has rekindled a political clash with Senator Elizabeth Warren, accusing her of advocating for the interests of Sam Bankman-Fried's (SBF) parents.

This exchange unfolded after Warren criticised Musk's involvement in President-elect Donald Trump's transition team.

Musk responded by suggesting that Warren's letter questioning his role in the Department of Government Efficiency (D.O.G.E) was influenced by SBF's parents, heightening the ongoing tensions between them.

Elizabeth Warren takes issue with @elonmusk
advising Trump on efficiency.

Apparently creating electric cars, reusable rockets, and brain interfaces counts as "nothing for society" in her world.pic.twitter.com/sHps2kQuXC

— Mario Nawfal (@MarioNawfal) December 18, 2024

Warren Critiques Musk's Role in Shaping Trump's Policies

Warren recently wrote a letter urging President-elect Trump to establish ethical guidelines regarding Musk's role in his transition team.

Warren expressed concerns about Musk's growing influence, particularly his leadership in D.O.G.E, and highlighted the potential conflicts of interest stemming from Musk's extensive business holdings, including Tesla and SpaceX.

She pointed out that Musk’s companies have secured billions in government contracts and often find themselves in conflict with federal agencies.

Warren called for clarity on whether Musk would recuse himself from decisions related to his businesses and what safeguards would be implemented to prevent ethical violations.

🚨NEW: Senator Elizabeth Warren calls out Elon Musk’s conflicts of interests with the incoming Trump Administration, demanding an ethics code will apply to Musk in a letter to the Trump transition team.

RETWEET to thank @SenWarren for holding Elon Musk accountable! pic.twitter.com/dWKMi7zSLt

— Elizabeth Warren Wins 🇺🇸 (@LizWarrenWins) December 17, 2024

Warren added:

“Mr. Musk is no ordinary citizen, Musk's substantial private interests present a massive conflict of interest with the role he has taken on as your 'unofficial co-president. Currently, the American public has no way of knowing whether the advice that he is whispering to you in secret is good for the country, or merely good for his own bottom line.”

These developments come amidst ongoing scrutiny by the US SEC over Musk's $44 billion acquisition of Twitter, with an extended deadline for compliance and the possibility of a Wells Submission if issues remain unresolved.

US SECURITIES AND EXCHANGE COMMISSION HAS EXTENDED TIMELINE FOR ELON MUSK TO RESPOND TO SETTLEMENT OFFER IN TWITTER PROBE UNTIL MONDAY, SOURCE SAYS

IF MUSK DOES NOT RESPOND SEC WOULD PROCEED TO A 'WELLS SUBMISSION' AND POTENTIAL NEW SETTLEMENT DISCUSSION, SOURCE SAYS

— *Walter Bloomberg (@DeItaone) December 13, 2024

Musk Fights Back, Brings Up SBF's Parents

Musk has responded to Warren’s accusations by suggesting that SBF's parents influenced her letter, framing the criticisms as politically driven and part of a broader agenda.

Musk's remarks have intensified the ongoing controversy, especially as SBF's legal challenges and political connections continue to dominate public debate.

His allegations further complicate the growing feud between him and Warren, who has previously criticised Musk on issues ranging from Tesla's labour practices to investigations into Neuralink.

💥 JUST IN: Elon Musk claims that the parents of Sam Bankman-Fried (SBF) are influencing Senator Elizabeth Warren by providing her with talking points pic.twitter.com/nd4sQk2G17

— Crypto Briefing (@Crypto_Briefing) December 17, 2024

Musk commented:

“The person actually writing these things from Pocahontas are SBF's parents btw.”

Warren has called on Trump to ensure Musk complies with stringent ethics agreements regarding his leadership role in the DOGE initiative.

Lmao.

The person actually writing these things from Pocahontas are SBF’s parents btw. https://t.co/V741yhitwp

— Elon Musk (@elonmusk) December 17, 2024

His latest post continued to make fun of Warren.

Guess who this is? 🤣🤣 pic.twitter.com/XHWcgIa04W

— Elon Musk (@elonmusk) December 17, 2024

What is D.O.G.E's Role in the Trump Administration?

Musk has firmly rejected accusations of ethical misconduct, defending his involvement in Trump's transition team by asserting that his leadership is motivated by national interests, not personal gain.

Musk recently stated that D.O.G.E could be pivotal in addressing US inflation by curbing government overspending, emphasizing that reducing unnecessary federal expenditures could help stabilise prices.

President-elect Trump also supported Musk, dismissing any concerns about conflicts of interest and reaffirming that Musk's work with D.O.G.E aligns with efforts to eliminate government waste.

Elon Musk explains how the Department of Government Efficiency (D.O.G.E) will reduce government spending and improve people's lives.

"At the end of the day you are being taxed all government spending taxation, whether its direct taxation or all government spending, its either it… pic.twitter.com/FMXu0T8zke

— SMX 🇺🇸 (@iam_smx) December 4, 2024

Despite Warren's criticisms, Trump expressed confidence in Musk's role, downplaying any potential ethical conflicts.

Trump expressed to Time magazine when asked if it is a conflict of interest by giving Musk the power to oversee the agencies that regulate his companies:

“I don't think so. Look, we have a country that is bloated with rules, regulations and with, frankly, people that are unnecessary to do. We are going to need a lot of people in a lot of other jobs. We're looking to get people into private sector jobs where they can do better and be more productive. We're going to see what happens. We have some interesting months coming up, at the beginning. We're going to see what happens. But this country is bloated.”

President-elect Donald Trump has been named TIME's 2024 ¬Person of the Year. In an interview with the magazine, Trump said he plans to move aggressively on mass deportations for undocumented immigrants using law enforcement and potentially the military. pic.twitter.com/PtFuBjzqsF

— CBS Evening News (@CBSEveningNews) December 13, 2024

He added:

“I think that Elon puts the country long before his company. I mean, he's in a lot of companies, but he really is, and I've seen it. He considers this to be his most important project, and he wanted to do it. And, you know, I think, I think he's one of the very few people that would have the credibility to do it, but he puts the country before, and I've seen it, before he puts his company.”

SBF, the founder of FTX, has been in prison for two years now. During this time, he has experienced a great deal of emotional turmoil and has written a diary detailing his feelings and observations. In it, he discusses the challenges of sleeping in prison, his longing for his bear pillow named Manfred, and his attempts to adapt to life behind bars.

He also writes about the various inmates he has encountered and how they have influenced his thinking. In contrast to SBF’s experiences, CZ, the founder of Binance, served four months in prison and was able to maintain a more positive outlook. He focused on making friends, exercising, and reflecting on the important things in life.

Upon his release, CZ received a warm welcome at the Binance Blockchain Conference in Dubai, where he impressed the audience with his performance. Some argue that CZ has a richer life experience than SBF and is better equipped to handle difficult situations. However, if we don’t judge heroes based on success or failure, SBF’s presence in the market today might have led to better conditions for retail investors and pushed the industry to new heights.

Many people believe that SBF’s understanding of the market and his innovative abilities would have been a significant advantage for the industry.

Source

<p>The post Title: SBF’s Diary: A Glimpse into the Life of a Former Billionaire Behind Bars first appeared on CoinBuzzFeed.</p>

On December 13, 2022, FTX founder Sam Bankman-Fried was formally arrested by the Bahamas police. If we count from that day, this is 720 days that SBF has been in prison, exactly two years. In his diary, SBF wrote, “I miss my little bear pillow, his name is Manfred.” This is the longest content in the first three chapters of the 32-year-old SBF’s diary, except for describing his fellow inmates, after experiencing $11 billion in property confiscation and 25 years of imprisonment.

SBF’s autobiographical memoir could bring a million-dollar advance from a publisher, according to an agent familiar with the matter. “The SBF’s motivations for trying to find a publisher for its diary are unclear. It was clearly not about money.”

Because under the forfeiture policy, all of SBF’s property and potential income, including potential income from publishing his memoirs, will be used to pay off his debts and compensate the victims of his fraud.

This means that even if the publication of the memoirs brings in significant revenue, the money will go directly to compensate those who suffered financial losses as a result of FTX’s bankruptcy. In the eyes of SBF, all inmates are gorillas. He writes as if he were Jane Goodall, the world’s renowned expert on chimpanzees, having studied social and family interactions for 60 years.

SBF observed and studied other inmates in the prison like “chimpanzees.”

He wrote, “Most people will be assimilated into prison, they will fight over a banana, and they will give everything they have for the chance to do drugs again.” “A drug called Deuce is widely used here. The ingredients are unknown.

I only know that it is smuggled into the prison by soaking it into ordinary paper, and those prisoners who take it turn into zombies every night.”

SBF seems to be in stages one and two of psychological changes after experiencing a major event: the numbing stage-cannot believe it and refuse to accept the facts; the complaining stage-blaming others and oneself for failing to deal with the development of things; the depression stage-accepting what has happened, resulting in sadness and depression.

His writings in the diary always “looked at everything around him with a cold eye” and told him that “I don’t belong here.” On the 720th day of imprisonment, SBF misses his bear pillow. Sleeping in prison is not very good. MDC is a sleepless place. Even at night, prisoners scream and curse one after another.

The lights are always in a semi-dark state 24 hours a day, making it difficult to tell the time. , which makes SBF very uncomfortable. In the loneliest moment of his life, Manfred was his only comfort. “I really miss Manfred,” he wrote in his diary. Image source:@LilMoonLambo

At MDC, a comfortable pillow is almost a luxury.

SBF tried to replace the pillow with a suit from court, or a towel and prison uniform stacked on top of each other, but these temporary solutions were far from providing enough comfort. “My neck has started to hurt,” he said helplessly. That little bit of improvement made his night a little easier until he traded two muffins for a pillow improvised with mattress stuffing and a T-shirt by a junkie inmate.

In prison life, sports gambling has become a pastime for many prisoners. One day, an inmate named Harry shared his gambling strategy with SBF: “Bet $100 first, then bet $250 if you lose, then bet $600 again, and so on until you win back. All bets.”

SBF wrote with contempt: “I really couldn’t bear to tell him that this trading strategy is a typical ‘gambler’s fallacy’.”

Although SBF behaves like an 80-year-old man in prison, no one knows “gambling” better than him in this regard.

The prison mainly lives on beans and rice, and rice has “become a transaction currency within MDC.” SBF even jokingly said: “Compared with his previous life as a high-frequency trader, the arbitrage opportunities in prison are much better.” He can finally be a proud trader again and continue to despise everything around him, regardless of Is it the people here or the life here.

Arrogant people are more likely to succeed and mess up more easily. This can also be well understood. In order to counter the three star witnesses opposite him in court, he stood on the witness stand and testified in person. Even though his lawyer and a prosecutor told him that the probability of self-incrimination was quite low.

Historically, there were very few cases in which defendants successfully defended themselves. In his 22-year career, he had only seen one defendant successfully self-incriminate. But SBF insisted on going his own way, and even almost fell out with his own lawyer, and the situation was chaotic for a time.

Christmas 2023, SBF in MDC Prison Photos

On the other side, in stark contrast to SBF, is CZ, who completed a $4.3 billion fine and spent four months in a US prison. In the photos taken by reporters during his previous court appearances, he was wearing a neat suit and looked calm. CZ in and out of court

In addition to the letter of apology written by CZ himself, the judge also received a 43-page plea letter, the longest in history, from CZ’s family, friends and colleagues, allowing CZ’s complete image to be displayed in front of the judge in a more three-dimensional way.

It was also prison life, but CZ showed a completely different style from SBF: “This experience made me realize the most important things in life again. I miss my children, family, friends, colleagues and community. Others I miss things too, but not as much as I miss people. You miss food and a comfortable bed, but these things don’t have much impact on me.”

When asked if he had made friends in prison, CZ responded in the affirmative, “Yes, you have to make friends, and it can be difficult if you are alone.” He expressed his sympathy for those who have served long sentences for small crimes.

sympathize with the prisoners and maintain contact with some friends. CZ has also started to exercise. This may be a preparation he made before he was imprisoned to prevent him from being regarded as having “the physique of an 80-year-old man” in prison. CZ, who was released from prison more than a month ago, appeared at the Binance Blockchain Conference in Dubai.

His performance was better than anyone expected, and he won a lot of applause from the audience. The headline of the foreign media that day was “The King Is Back”. If SBF is still there

When SBF was arrested, the price of BTC was $16,000, while the current price of BTC is $100,000. In the past two years, SBF has missed a lot in the encryption industry.

Some people who “judge heroes by success or failure” say that CZ has much richer life experience than SBF, and is more resilient in difficult situations. But if we don’t judge heroes based on success or failure, if SBF were still there, the current market environment might be the same. For example, the market has plummeted in the past two days.

If FTX can still be used, retail investors will have more opportunities to make money. The most typical one is FTX’s basket of altcoin index. By long and short the entire altcoin index, rather than a certain one Altcoin. However, after the collapse of FTX, the product track of this “copycat index” is still blank.

Currently, there is no platform on the market that can provide similar services. Not only is a trading tool missing, the collapse of FTX is a major blow to the liquidity of the crypto market, which has rapidly shortened the liquidity in the industry. “The entire industry has regressed for at least three years.” This was the intuitive feeling of many people at the time, including Justin Sun.

SBF and FTX understand the market better than any trading platform currently on the market. SBF’s background as a trader has left a deep impression on the market, and it is believed that he is more sensitive to market trends. Many people believe that if SBF is still there, his insights and innovation capabilities will push some emerging tracks led by Solana to new heights, and then take the entire industry to greater heights.

On the 720th day of his imprisonment, SBF missed his bear pillow Manfred. Outside, there are still people who miss the golden era of SBF.

Source

<p>The post Title: SBF’s Diary: A Glimpse into the Life of a Prisoner Missing His Bear Pillow first appeared on CoinBuzzFeed.</p>

Debtors representing cryptocurrency exchange FTX in the firm’s bankruptcy case have reported recovering millions of dollars worth of donations sent to political organizations.

In a Dec. 10 filing in the United States Bankruptcy Court for the District of Delaware, FTX debtors reported receiving more than $14 million in small estate claims in November.

The filing showed the debtors settled with the House Majority Political Action Committee (PAC) for $6 million, the Senate Majority PAC for $3 million, and donations worth thousands of dollars from Democratic parties in different US states.

FTX bankruptcy filing, Dec. 10. Source: Kroll

The settlements were part of the effort from FTX debtors to claw back donations made by the exchange at the order of Sam “SBF” Bankman-Fried. US authorities initially charged the former CEO with using FTX customer funds to make millions of dollars of political contributions in 2022 but dropped the charge the following year due to complications with his extradition from the Bahamas.

FTX filed for Chapter 11 bankruptcy protection in the US in November 2022 and has been embroiled in court proceedings for more than two years. In October 2024, the bankruptcy judge in the case approved a reorganization plan that could allow FTX’s debtors to repay 98% of users about 119% of their claimed account value. 

Bankman-Fried escaped campaign finance charges, but not all FTX execs did

Though the former CEO never faced campaign finance charges at his criminal trial, a jury found Bankman-Fried guilty of seven felony counts, including fraud and money laundering. In March, a judge sentenced SBF to 25 years in prison. His lawyers are appealing the conviction and sentence.

Former FTX Digital Markets co-CEO Ryan Salame pleaded guilty to engaging in campaign finance fraud related to contributions to his partner Michelle Bond’s run for US Congress in 2022. Salame is currently serving seven-and-a-half years in prison, while Bond faces her own charges based on alleged violations of campaign finance law.

In addition to Bankman-Fried and Salame, former Alameda Research CEO Caroline Ellison is serving two years in prison after a plea deal with prosecutors. The only two individuals indicted in the FTX collapse to escape prison time were co-founder Gary Wang and former engineering director Nishad Singh. Both were sentenced to time served.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

BlockBeats news reported on December 9 that former cryptocurrency billionaire SBF, who is currently serving a 25-year sentence at the Metropolitan Detention Center (MDC) in Brooklyn for fraud, has started writing his memoirs. Forbes obtained an early look at some of the chapters, possibly because SBF has not yet fully adjusted to his new reality.

He writes in a style reminiscent of Jane Goodall describing life with chimpanzees or a Victorian ethnologist observing an exotic culture. “Most people become introverts,” SBF writes, referring to other prisoners. “They would fight over a banana.” Other chapters focus on more mundane issues, such as his struggle to get a pillow.

“I lost my pillow tonight. So I used a towel and prison uniform to support my head tonight. It didn’t work and my neck was already hurting,” he wrote.

Source

<p>The post SBF Begins Writing Memoirs from Behind Bars first appeared on CoinBuzzFeed.</p>

Key Points:

SBF prison life is currently in the Metropolitan Detention Center in Brooklyn.

SBF shares a dormitory with former Honduran President Juan Orlando Hernández and Genaro García Luna.

According to WSJ, SBF prison life was with former Honduran president and former Mexican police chief, who were involved in drugs. The SBF also provided crypto advice to the guards.

Sam Bankman-Fried (SBF), the co-founder and ex-CEO of FTX, is currently serving time in the Metropolitan Detention Center in Brooklyn. He shares a dormitory with former Honduran President Juan Orlando Hernández, who is awaiting trial for accepting bribes from drug traffickers, and Genaro García Luna, a former Mexican police chief convicted of aiding drug cartels.

Despite the circumstances, SBF seems to have cordial conversations with his fellow inmates. He faced difficulties in accessing vegetarian meals and ADHD medication initially, but those issues have been resolved.

SBF is allowed non-attorney visitors once a week and has a special laptop to review legal documents, albeit only in a dedicated room. He has been involved in the prison economy, trading mackerel packets for services.

SBF Prison Life: From Crypto-Billionaire to Fish Trader

Additionally, SBF has transitioned from trading digital assets to becoming a mackerel trader, the prison currency. Mackerel, known as "macks," has replaced traditional money. Despite inflationary pressures, a pouch of mackerel filets costs $1.30. The mack currency system is considered more stable than crypto.

Mackerel packets have become a prison currency since cigarettes were banned. Besides, SBF has also provided cryptocurrency investment advice to prison guards, according to sources.

After his sentencing on March 28, 2024, SBF will be transferred to a federal prison, which is expected to offer better living conditions, educational and recreational resources, and a less violent prison population.

Currently, SBF faces a maximum sentence of 115 years in prison, but experts predict he may serve 25 years or less. Despite the challenges, SBF is reportedly doing his best under the circumstances.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Sam “SBF” Bankman-Fried’s defense attorney Mark Cohen heard testimony from the former FTX CEO on his relationship with Caroline Ellison and political donations from the crypto exchange.

According to reports from the courtroom on Oct. 27, Bankman-Fried claimed not to have discussed donations to U.S. politicians with former FTX engineering director Nishad Singh and former FTX Digital Markets co-CEO Ryan Salame. SBF reportedly said the donations made in his name came from “loans from Alameda Research” as part of efforts to influence U.S. government’s policies on regulating crypto.

“[...] I thought policy was important. Congress and the executive branch… Some were [supportive of] FTX for cryptocurrency lobbying. Some, not most.”

Cohen also posed more personal questions seemingly unrelated to the allegations SBF was facing in court. The defense lawyer asked Bankman-Fried what led to the end of his relationship with Ellison.

“She wanted more than I could give,” the former FTX CEO reportedly said, referring to Ellison. “It wasn’t the first time with me.”

During her testimony, Ellison said the relationship ended as SBF “wasn’t spending much time” with her. Cohen asked the former FTX CEO the reasons behind his style, with SBF replying his hair was the result of him being “lazy” while he found wearing shorts and T-shirts on most occasions “comfortable.”

In earlier testimony on Oct. 27, the former CEO reportedly denied defrauding FTX users by directing efforts at Alameda allowing the firm to use customer funds. Former FTX chief technology officer Gary Wang and others offered testimony claiming SBF had given Alameda the ability to trade more funds than it had available.

Bankman-Fried's testimony will likely end by early next week following cross-examination by attorneys with the U.S. Department of Justice. Barring addressing any motions or legal hiccups, the court will then likely instruct the jury to deliberate on the seven criminal charges.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

Sam Bankman-Fried, known as “SBF” in the crypto world, found himself at the center of the storm this week, as he faced a barrage of questions in his ongoing criminal trial at the United States District Court for the Southern District of New York.

Boldly denying any corrupt entanglements between FTX and Alameda Research, SBF admitted to making “grand blunders” during the meteoric rise of his company, yet stood his ground against allegations of deliberate mismanagement.

The beginning of his official testimony on October 27 marked a stark contrast to the previous day’s proceedings, where he seemed to falter under the intense scrutiny of government attorneys.

However, he bounced back, presenting a more composed and prepared demeanor when addressing the jury.

SBF dove into the murky waters of FTX’s past operations, refuting claims of orchestrating millionaire political donations in 2021 and arguing that FTX’s terms of use sufficiently covered transactions between Alameda and the crypto exchange.

He acknowledged his request for more robust hedging strategies for Alameda during 2021 and 2022, yet lamented their lack of implementation.

The Turning Tide: SBF’s Political and Corporate Entanglements

SBF found himself in hot water as he vehemently denied having played puppet master to Ryan Salame and Nishad Singh, former top brass at FTX, steering them to pour millions into political campaigns.

OpenSecret’s data spills the beans with Singh contributing $8 million and Salame parting with $10 million through loans from Alameda Research in the 2022 election cycle.

Though he washed his hands of these transactions, SBF couldn’t deny the vital role of political lobbying in pushing for a favorable regulatory crypto framework in the U.S. during 2021.

Prosecutors threw a curveball, accusing SBF of dipping into customer deposits at FTX to fund over $100 million in political campaign contributions ahead of the 2022 U.S. midterm elections.

SBF stood his ground, arguing that FTX was swimming in over $1 billion in revenue in 2021, and political donations were made from the exchange’s own coffers, not customers’ funds.

Alameda’s Curious Role and Missteps

Shedding light on Alameda’s peculiar relationship with FTX, SBF detailed how Alameda served multiple roles: a payment provider, primary liquidity provider, market maker, and a client.

Alameda’s lines of credit with FTX ballooned as the crypto industry rode the wave of a bull market. However, SBF underscored the need for these unique arrangements, as they prevented potential liquidations that could wreak havoc in the crypto markets.

Alameda’s failure to implement proper hedging strategies, despite SBF’s persistent requests, was laid bare.

SBF recounted his interactions with Caroline Ellison, then CEO of Alameda Research, emphasizing his push for a $2 billion Bitcoin hedge against a potential market downturn in 2021 – a strategy that was never realized.

By September 2022, the liability between FTX and Alameda had skyrocketed from $2 billion to a staggering $8 billion, catching SBF off guard and highlighting the perils of inadequate risk management.

Terms of Use and the Clawback Clause

In his defense, SBF pointed to FTX’s terms of use, highlighting a clawback provision that spread the losses among customers using margin trade and futures contracts in case the exchange’s risk engine failed.

Defense lawyers used this as a springboard to argue that customers trading on FTX were well aware of the associated risks, painting a picture of transparency and due diligence.

As SBF’s trial continues, with the defense expected to wrap up his examination by October 30, followed by the prosecution’s counter-arguments, the crypto world watches with bated breath.

The potential introduction of a rebuttal witness by the prosecutors could further turn the tides, as SBF faces the possibility of a 115-year jail sentence if convicted on all fraud and conspiracy charges.

In this high-stakes game of truth and consequence, FTX’s fall from grace under SBF’s watch has become a spectacle of epic proportions, leaving the crypto industry at a crossroads, and a man’s legacy hanging in the balance.

The former FTX CEO returned to the witness stand to present his testimony to a jury of 12 people as the criminal trial began to reach its final stages.

Defense attorneys representing Sam “SBF” Bankman-Fried questioned the former FTX CEO before a jury for the first time as they prepared to rest their case.

According to reports from the New York courtroom on Oct. 27, Bankman-Fried denied defrauding FTX customers and taking their funds while leading the crypto exchange. The former CEO reportedly said he knew “basically nothing” about digital assets when launching crypto hedge fund Alameda Research.

“FTX declared bankruptcy,” said SBF in response to a question from his lawyer, Mark Cohen. “A lot of people got hurt.”

Cohen questioned SBF about Alameda’s operations in Hong Kong, asking how he believed risk at FTX could have potentially affected the hedge fund. At the center of allegations against Bankman-Fried are claims he directed efforts that resulted in Alameda using FTX customer funds without their knowledge. He faces seven criminal charges in his current trial.

“Alameda was a market maker [for FTX],” said Bankman-Fried, according to reports from the courtroom. “If an account went negative, we’d start selling off, but if late, we had backstop liquidity.”

SBF added, over the objection of prosecutors:

“We increased the number of servers, for the risk engine. But we learned that if there was an erroneous liquidation of Alameda, or any other large account […] it would be catastrophic for FTX.”

According to Bankman-Fried, he told former FTX chief technology officer Gary Wang to “stop such liquidations of Alameda’s account,” also suggesting Wang implemented the “allow negative” feature without SBF’s prior knowledge. Wang testified on Oct. 6 that Bankman-Fried had ordered him and former FTX engineering director Nishad Singh to implement the feature in 2019.

At the time of publication, Bankman-Fried had yet to face cross-examination by the U.S. government for his testimony before a jury. Judge Lewis Kaplan had SBF “preview” his testimony before prosecutors and defense attorneys on Oct. 26 without the jury present. 

Before Oct. 25, it was uncertain whether Bankman-Fried would testify in the criminal trial. As prosecutors were preparing to finish questioning the last witness in their case, defense attorneys told Kaplan they were preparing to call only a handful of witnesses, including SBF.

The trial is expected to end within a few business days, with prosecutors and defense lawyers delivering closing arguments to the jury. Bankman-Fried is scheduled to face five more criminal counts in a second trial expected to start in March 2024. He has pleaded not guilty to all charges in both cases.

The post Sam Bankman-Testimony Fried: “A lot of people got hurt” is presented to the jury. appeared first on BitcoinWorld.

The drama in the courtroom hit a new peak on day 13 of Sam “SBF” Bankman-Fried’s trial, with attendees eagerly anticipating each development, only to find themselves caught in a monotonous loop of legal banter.

Both the defense and prosecution seemed to be stuck in a relentless cycle of objections, queries, and side conversations, prompting District Court Judge Kaplan to intervene, urging the lawyers to cut to the chase and keep the ball rolling.

The prosecution wrapped up their case in the early hours, presenting FBI Agent Mark Troiano as their final witness.

His testimony shed light on the extensive communication networks involving SBF, exposing over 300 Signal groups with the auto-delete feature turned on, a detail that raised eyebrows and left a lingering sense of intrigue.

Delving into the Details: Witnesses Take the Stand

The defense’s response was swift and strategic, calling upon Bahamas attorney Krystal Rolle to the witness stand.

Rolle, who had represented both SBF and FTX in November 2022, recounted her involvement in crucial meetings with the Securities Commission of the Bahamas following the collapse of FTX.

Her revelation that all digital assets under FTX’s control were transferred to the Bahamas regulator on the day a court order was issued added a new layer to the unfolding saga.

Joseph Pimbley, a financial consultant boasting a Ph.D. in physics, was next to testify, bringing his analytical prowess to dissect FTX’s code and database.

His findings highlighted that FTX held assets exceeding $5.8 billion in November of the previous year, excluding balances from FTX entities or Alameda Research.

However, the prosecution was quick to point out that FTX’s database did not accurately reflect its bank accounts, casting a shadow of doubt and raising more questions than answers.

SBF Under Oath: A Tense Testimony

With the jury momentarily excused, SBF took the stand, delivering a testimony that was both anticipated and peculiar.

The former FTX CEO addressed questions regarding his use of Signal and the retention of communications data at the crypto exchange, asserting that he adhered to company policies and that the auto-delete feature was not a conduit for major decisions.

The focus then shifted to North Dimension, an alleged “shadow entity” supposedly used for laundering customer funds.

SBF admitted to signing the papers for its establishment, though he claimed to have done so without scrutinizing the details, placing his trust in Dan Friedberg, the former chief regulatory officer.

“Was it legal to channel FTX deposits through Alameda?” defense attorney Mark Cohen inquired, to which SBF confidently replied, “I believed it was.”

As the session progressed, the courtroom dynamics took an unexpected turn. Instead of the usual direct and cross-examination, Judge Kaplan initiated a hearing to resolve the disputes over parts of SBF’s testimony that the prosecution had objected to but the defense wished to retain.

The judge declared that his final ruling on what the jury would be allowed to hear would be made the following morning.

In a day filled with legal jargon, technical financial analyses, and a labyrinth of communications details, the courtroom drama surrounding SBF’s trial intensified.

With the former CEO’s fate hanging in the balance, the proceedings left an indelible mark, serving as a stark reminder that the road to truth and justice is anything but straightforward.

The courtroom buzzes with anticipation as SBF’s high-profile criminal trial enters its third week. Eager eyes are locked on, and the whispers of the masses have found their way outside the four walls of justice.

While the prosecution gears up to wind down its side, the defense seizes a momentary reprieve to prepare for what’s to come. Yet, as is often the case in such trials, it’s the unpredictable moments that steal the show.

A Judge’s Frustration and Questionable Witnesses

A hushed courtroom watched as Judge Kaplan’s face contorted into a mix of frustration and disbelief. The prosecution’s decision to call upon certain witnesses clearly didn’t sit well with him.

Take, for instance, the ex-policy director from FTX, whose tenure barely overlapped with the drafting of the company’s policy statements.

Her presence seemed more ceremonial than functional, reminiscent of a pawn in a chess game, merely to play snippets of SBF’s testimonies.

Then there was the Google worker from DC, an episode that seemed more a test of taxpayer money than anything of substance. His cameo lasted less than a half-hour, a blink of an eye in court proceedings.

Beyond this, one can’t help but wonder if the prosecution is overplaying its hand. In their eagerness to paint a guilty picture, are they just wasting the jury’s time?

After all, the onus is on them to establish beyond reasonable doubt that the crimes were indeed committed by Bankman-Fried.

Star Witness Breakdown: Caroline Ellison’s Emotional Rollercoaster

Amidst the mundane and often tedious testimonies, Caroline Ellison’s moments on the stand were the ones that sent ripples across the courtroom. As the star witness, the weight on her shoulders was palpable.

Facing a mind-boggling 110 years for fraud and conspiracy, every word she spoke echoed with gravity. Her tears, real or rehearsed, underscored the emotional burden she shouldered.

With every revelation about her knowledge of FTX’s questionable dealings and her own participation in creating doctored financial statements (allegedly under SBF’s guidance), she further complicated the narrative.

However, her motivations could easily be questioned. Was she merely attempting to negotiate a lighter sentence by providing the prosecution with what they wanted to hear?

Defense’s Fleeting Moments of Triumph

The defense, thus far, seems to be clutching at straws. Yet, when they tackled the testimony of former FTX co-lead engineer Nishad Singh, a glimmer of hope emerged.

Singh’s accounts of his personal ethics clashing with FTX’s operations were compelling, but the defense was quick to point out the holes in his moral compass.

Singh’s acceptance of a generous loan from Alameda, especially after being aware of the company’s financial discrepancies, highlighted a significant contradiction in his statements.

SBF: The Alleged Puppet Master

The crux of the prosecution’s narrative is clear: they want the jury to believe that SBF was the mastermind. Yet, in a trial of conspiracy, it’s essential to prove collaboration.

If SBF acted alone, the conspiracy charges would simply dissipate. With the trial’s intensity ramping up, one can’t ignore the fact that some jurors seem disengaged.

Perhaps it’s the inundation of expert witnesses, or the endless parade of spreadsheets and documents. Yet, if they’re disinterested, can they truly deliver a verdict rooted in justice?

As the trial unfolds, it’s clear that the line between guilt and innocence is blurred, and only time will tell where SBF stands. The courtroom drama, with its share of theatrics and unexpected twists, serves as a potent reminder: in the world of justice, there’s never a dull moment.

The FTX legal battle representing SBF has been in the spotlight amid new developments in the case that have set the crypto world in awe. In a dramatic turn, the SBF legal defense team has made its intentions clear on claiming ‘inconsistent statements’ made by the prosecution witnesses who took the stand last week. 

Among them are FTX ex-officials Nishad Singh and Gary Wang. Bankman-Fried is currently facing allegations, including regulatory compliance issues and market manipulation. However, his defense team has taken to discredit the witness’s credibility. 

The ‘inconsistent statement’ claim by SBF defense 

Sam Bankman-Fried’s defense team tried to plead with the presiding Judge Lewis Kaplan to provide proof of an ‘inconsistent statement’ from the former FTX executives. The defense team has zeroed in on the witnesses who said concerning the financial situation of FTX and their comments on stablecoins. 

The defense also sought to decipher info on how SBF’s Alameda Research was allowed to borrow unlimited funds from the FTX crypto exchange. 

They also zoomed in on Signh’s haziness between June and July last year before his testimony. SBF’s team highlighted his initial testimony with the federal official before he took the stand. 

Two FBI agents are also set to take the stand as part of the defense witnesses to discuss their notes on the FTX investigation on conversations with Singh and Wang during their arrest.

As such, the defense seeks to present notes on these conversations by including the agents involved, noting that their testimonies do not coincide. According to the defense filing:

On October 21, Mr. Bankman-Fried’s counsel advised the Government that it would seek to introduce evidence of Mr. Wang’s and Mr. Singh’s prior inconsistent statements.

SBF’s Defense filing

Wang had also testified that he couldn’t recall whether he talked about his market maker role in Alameda Research, and this did not align with his conversation in November 2022. In his discussion with law enforcement last year, he also spoke about stablecoins being part of the market-making function. However, he says he does not recall this conversation. 

Singh also made inconsistent statements on how well he recalled the events in July 2022 from June, and the filing highlights this. The filing states that he did not remember telling investigators if he felt OK about purchasing a house after the collapse of FTX in January. 

The filing details

However, one question remains: Will Sam Bankman-Fried take the stand? The former FTX CEO will be part of the witnesses to testify against the criminal fraud case. Following the intended presentation of its case on October 26, Cohen stated that SBF lawyers, Judge Lewis Kaplan, and the prosecution talked about SBF’s take to the stand in a telephone call on October 25. 

Based on Judge Kaplan’s comments on allowing the case to go straight through and move from the prosecution’s final witness to the defense’s first one. 

Also, according to Cohen, the defense team will not take more than 72 hours to question the three witnesses named as their witnesses. These would include Joseph Pimbley, who would testify on the responsibilities of former FTX employees. 

Judge Kaplan hinted that the witness’s testimony would take less than 30 minutes, excluding Sam Bankman-Fried’s testimony. Assistant US Attorney Nicolas Roos made other comments on the recent developments. He was quoted saying:

 The government has a single substantive wire fraud count related to customers, and the theory is that the defendant [SBF] made false representations and was in a trust relationship with depositors and took money. I think there is certainly an element to which these are very intertwined to the extent that the false representations created an impression of trust and confidence amongst the victims of the crime.

US Attorney Nicolas Roos

It is time for a federal judge to decide on the length of the sentence for Sam Bankman-Fried, the founder of FTX. Both the defense and the U.S. Department of Justice have presented their arguments, as well as statements from FTX creditors and close friends and family of Bankman-Fried.
Emotional Impact on Both Sides
Prosecution and defense representatives have now provided their perspectives on the sentence to the judge, including emotional arguments gleaned from letters from people associated with FTX and Bankman-Fried. The key question is whether Sam Bankman-Fried should be sentenced to decades in prison, as the U.S. Department of Justice desires, or if his punishment should be more lenient, as suggested by the defense.
Consideration of Evidence and Behavior
Judge Lewis Kaplan will have to consider various factors, including letters from Bankman-Fried's family, former FTX employees, and former customers. These materials offer insight into the impact of FTX's collapse on its customers and on Bankman-Fried himself.
Arguments For and Against Severe Punishment
While the defense argues that Bankman-Fried faces enormous personal consequences and should not be harshly punished, the Department of Justice emphasizes his deliberate violation of the law and doubts about his efforts to remedy the damage.
Impact on FTX Victims
In statements about the impact on victims submitted by the Department of Justice, former FTX customers describe how the exchange's collapse affected their finances and lives. These statements reveal how deeply FTX's collapse affected the lives of many people.
Technical vs. Emotional Compensation
While the defense claims that FTX customers will be fully compensated after the bankruptcy proceedings, several creditors point out that they will only receive the value of their cryptocurrencies as of November 2022, not the potential profits they could have had. The letters also state that refunding the funds will not compensate for the time when customers did not have access to them.
Judge's Decision
Among other factors likely to be considered by Judge Kaplan are Bankman-Fried's behavior during the process, testimonies, and the possibility that he could again violate the law. The defense emphasizes that the government is trying to break Bankman-Fried and warns against a punishment that is too harsh, which would abuse him even if he could theoretically commit fraud again.
Sentencing Date
Sam Bankman-Fried is scheduled to be sentenced on March 28, and the judge's decision will be a pivotal moment not only for him, but also for his family.
#SBF #trial #crime #crypto

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The Sam Bankman-Fried (SBF) lawsuit has been a major spotlight for the crypto community as the ongoing trial has shown various dramatic turns of events that could affect its overall court ruling. A recent report has shown that Sam Bankman-fried had invested in XRP and is currently facing a loss of over $4 million worthy of XRP. 

According to recent evidence about SBF’s activities, the crypto guru had invested in XRP and saw losses in the market that affected his plans. The funds were collected from his Alameda research, which also proved to be part of his activities in his allegations. 

SBF and Ripple XRP investment

According to reports, $4 million worth of XRP was lost amid Sam Bankman-Fried’s plan to invest in Ripple’s native token, and the report states that the funds simply “vanished” Following recent developments in his case. The 31-year-old crypto guru used funds from his FTX sister company, Alameda Research. SBF used these funds in trading and encountered huge losses. 

However, according to Bankman-Fried, he had assumed the funds originated from an exchange based in the United States to a South Korean one. In light of these developments, the crypto community, including the XRP investors, grew worried about where the funds had gone. Others had assumed Sam Bankman-Fried had stopped trading so as to figure out where the funds had gone. The report stated:

 At length, Sam agreed. He stopped trading for two weeks. The other members of the management team confirmed that millions of dollars’ worth of Ripple was indeed missing.

Data report

SBF had recorded losing a total of 20 million XRP tokens at the time and now implicates him if finds mismanagement since it was initially transferred from the Alameda Research, according to the Wall Street Journal. Initially, according to the report, SBF borrowed $170 million from various investors in order to place the trades but eventually incurred losses in his endeavors. 

In an effort to appease his staff, the FTX former CEO told his staff “falsely” that about 80% of the missing XRP was accounted for.  A fellow manager at his company quoted what SBF told them, stating:

 After the fact, if we don’t get any of Ripple back, no one will say it’s fair for us to say we own 80% of Ripple. Everyone will say we lied to them. Our investors will accuse us of fraud.

FTX insider

SBF’s side of the story

Coincidentally, he wasn’t aware of their whereabouts. In mitigation attempts to salvage the remaining funds, Bankman-Fried’s employees persuaded him to stop placing trades for two weeks. Following this, this was a consideration of the highly servier predicament SBF had placed the company in. 

Adding to this, the missing XRP was also a last straw, according to the report filing. In essence, the tryst between the connection between the Alameda team and SBF was tarnished and suspended indefinitely. Investigations followed these events, and the funds were traced to Bithumb, a South Korean crypto exchange, initially from the Kraken exchange. 

Also, in the spring of 2022, the exchange firm had reportedly placed a huge amount of trades daily, and the Alameda Research executives grew suspicious. They were alarmed by “how little Sam cared about where his money actually was.” 

According to the report filing, the company was making a total of over 250,000 trades in a single day. The report stated, “Bithumb received the 20 million XRP coins without any hint from the sender on who they belonged to.”

If the court ruling goes against SBF, he will face charges on allegations of two counts of fraud, defrauding, and conspiracy to commit money laundering. 

Sam Bankman-Fried (SBF), a crypto billionaire and the enigmatic founder of the collapsed crypto exchange FTX, has gained much public attention following his legal case. The polarizing figure in the crypto world is currently facing a legal case against him and is set to take the stand in the upcoming trial. 

Among the financial experts who commented on the case is Anthony Scaramucci, who highlighted there is no way SBF would outwit the prosecution when he takes the stand. The comments sent shockwaves through the crypto community, which meant FTX was in jeopardy and would affect its investors. He commented that SBF has no chance of “outfoxing” the prosecution. 

Comments on SBF taking the stand

Anthony Scaramucci, a SkyBridge Capital founder, commented that SBF would not be a match for the prosecution team. He highlights the prosecution’s intent on grilling the defendant and pokes holes in his defense when he takes the stand during his trial. 

On October 25, Scaramucci stated in his interview on CNBC Last Call that the United States Department of Justice (DOJ) will highlight all contradictory information and activities SBF did that will influence his sentence. In Anthony’s words:

 He’s gonna get skinned alive; there’s no way to escape. He thinks he’s going to outfox the prosecutors, but they’re very, very well experienced with this stuff.

Anthony Scaramucci

Based on his comments, Scaramucci believes that the prosecution has been revising the nature of the case and the entire history of SBF. This included the history of Bankman-Fried as a “congenial nerd who was to give all his money away.” However, testimonies against him presented by the prosecution’s witnesses, who were also former FTX executives, illustrated “there was malevolence.” Anthony continued and stated

 He thought he was going to take that money, and he was so smart that he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.

Anthony Scaramucci

SBF’s future if he takes the stand 

Scaramucci also invested with FTX in September 2022, when he let the crypto exchange ventures acquire a 30% stake in his company, SkyBridge. Currently, Anthony is trying to buy back these shares from the bankrupt firm. 

This deal was done based on Scaramucci’s beliefs that SBF was the “Mark Zuckerberg of cryptocurrencies,” but this was before the allegations placed against him that included misappropriation of investor funds. 

Scaramucci stated in his interview that he linked SBF to heads of state and was “embarrassed” about the whole ordeal. He explained that he had much faith in the former FTX CEO at the time.  In his words, he saw SBF as “a smart guy who was well-intended.”

Now Scaramucci says that Bankman-Fried will get nailed when he takes the stand, commenting that “It’s a very bad move for him,” saying he will be “skinned alive.”

The seasoned financier shared his views based on various reasons, including legal scrutiny the former FTX CEO is facing. The US is keen on SBF’s crypto activities and compliance with the regulation frameworks. As such, if any misconduct is discovered, it is best to believe that legal actions will follow. 

Reputation is also a paramount attribute in the crypto world, and following the current legal case against Bankman-Fried, any negative insinuation might have lasting consequences. 

Additionally, the crypto space must mitigate and navigate legal challenges. It is essential to note that Scaramucci’s views on the matter are not equivalent to a condition. The outcome of any proceedings on the legal case is still uncertain, even when SBF takes the stand. 

What’s left for SBF to say?

You’ve probably already heard the news. Sam will testify in his own criminal case. It will most likely be later today. But what will he say? Nobody, and I mean nobody, has an idea.

Has he already said so much or so little? Sam created a story for the world’s cameras in the month between FTX’s demise and his arrest in the Bahamas. According to him, the crypto exchange’s early November crisis was not caused by unlawfully lending billions of dollars in customer deposits to his hedge fund, Alameda. Or perhaps it was. But, if it was, he was unaware of it.

“I was vaguely aware,” Sam Bankman-Fried remarked in a hesitant interview with George Stephanopoulos on December 1, 2022, portions of which were broadcast throughout the trial. Few people in the crypto sector believed him. Nobody else did in the financial ecosystem did. Well, except Kevin O’Leary, who beacons, he would invest with SBF again.

Nonetheless, Sam had two advantages at the time: 1. He was working in a low-information setting, and 2. He wasn’t under oath. Both factors are now null and void, and they are working against him as he takes the stand. 

The courtroom drama surrounding Sam “SBF” Bankman-Fried has taken a sharp turn, focusing heavily on his intricate web of political donations and personal relationships.

SBF, standing amidst the ruins of the former FTX empire, has found himself in the hot seat as his defense attorney, Mark Cohen, rigorously questions him about his connections, aiming to unravel the complex narrative surrounding his case.

In a crucial moment of the trial, Bankman-Fried was interrogated about his affiliations with politicians and the monetary contributions made under his name.

Reports from the scene highlighted his attempts to navigate through these inquiries, suggesting a financial pipeline from Alameda Research to influence the political landscape, particularly the U.S. government’s stance on cryptocurrency regulations.

He stated, “I believed in shaping the policy. It was vital to engage with Congress and the executive branch,” though he was adamant about his limited direct communication with other FTX associates on this matter.

Engaging in Politics: SBF’s Calculated Donations

However, the courtroom drama did not just circle around financial transactions. Cohen, in an unanticipated move, steered the dialogue towards SBF’s personal life, inquiring about the end of his relationship with Caroline Ellison.

In a moment of vulnerability, Bankman-Fried confessed, admitting that he couldn’t provide what Ellison sought in their relationship. Her account mirrored this sentiment, pinpointing the lack of time spent together as the crux of their issues.

This narrative intertwined with SBF’s distinct personal style, as he justified his casual attire and unkempt hair to personal comfort and a touch of laziness.

It painted a picture of a man overwhelmed, perhaps underestimating the gravity of his situation, or maybe, just maybe, a strategic move to garner empathy.

The court also heard contradicting testimonies regarding SBF’s involvement in Alameda’s financial operations. He firmly denied any fraudulent intentions, distancing himself from allegations of directing customer funds for Alameda’s use.

Yet, testimonies from former FTX chief technology officer, Gary Wang, and others presented a different story, suggesting that SBF had indeed granted Alameda access to trade with funds beyond their means.

Critical Examination and the Road Ahead

As we approach the final stretch of this courtroom saga, with Bankman-Fried’s testimony expected to wrap up early next week, the spotlight intensifies on SBF’s political donations.

The U.S. Department of Justice attorneys are gearing up for a meticulous cross-examination, aiming to dissect his every word and action.

The jury will soon be tasked with navigating through this labyrinth of financial transactions, personal relationships, and contrasting narratives, as they deliberate on the seven criminal charges laid before SBF.

The court is bracing itself for any potential legal hiccups that might arise, with the world keenly watching, waiting to see if justice will be served or if the enigma that is SBF will live to see another day.

In this high-stakes game of truth and deception, the courtroom has become a battlefield, and SBF, once a cryptocurrency titan, now stands at its center, his fate hanging in the balance, as the world waits with bated breath for the final gavel to strike.

In a major turn of events, US prosecutors have decided to drop a second trial for Sam Bankman-Fried (SBF), the founder of the now-bankrupt FTX cryptocurrency exchange. SBF was convicted last month on seven counts of fraud and conspiracy. The decision was revealed in a letter filed on Friday night in federal court in Manhattan.

Coinbase legel officer launches attack

Paul Grewal, Chief Legal Officer at Coinbase, shared his thoughts on the Department of Justice’s (DOJ) decision not to pursue campaign finance charges against SBF.

In a post, Grewal showed reluctance to second-guess the agency’s decision. He acknowledged that line prosecutors and supervisors possess more information than the public. He even highlighted the importance of considering resources, efficiency, and extradition challenges when deciding on a second trial for a defendant facing significant legal consequences.

However, Grewal termed the decision as a “miscarriage of justice.” He pointed out that the public interest in a transparent airing of charges, particularly in the case of campaign finance violations. 

Questions about what politicians and other individuals knew and when they knew it, according to Grewal, deserve answers.

Adding to his concerns, Coinbase legal chief also criticized the announcement’s timing. He noted that releasing such information on a Friday night before a holiday weekend could fuel public cynicism about the political aspects of the decision.

What’s next for FTX?

According to the reports, despite Grewal’s reservations, the decision not to pursue campaign finance charges aligns with the prosecutors’ goal of a swift resolution. Bankman-Fried is scheduled for sentencing on March 28, 2024, with potential orders for forfeiture and restitution for victims of his crimes.

SBF, known for his role in the collapse of FTX and its sister hedge fund Alameda, had faced additional charges that were severed from the first trial. These included campaign finance violations, conspiracy to commit bribery, and operating an unlicensed money transmitting business. The Department of Justice’s decision not to proceed with these charges has sparked debate and raised questions about the broader implications for justice and transparency.

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