Crime

FTX and Alameda Research founder Sam Bankman-Fried was arraigned Tuesday in a Manhattan courtroom. Now attention turns to the legal process leading to an epic trial scheduled to start in October.

Understandably, the press focused on the big headline – that SBF had been accused of committing one of the largest financial frauds in U.S. history. But is there a time bomb ticking away in the indictment?

Far less attention was paid to the last count in the indictment: The allegation that SBF conspired with others to violate campaign finance laws. It was well-documented that SBF had been a major contributor to mostly Democratic candidates (while his colleague, Ryan Salame, was a major Republican donor).

h/t DM

US authorities are ratcheting up pressure on Sam Bankman-Fried’s inner circle as they scrutinize former close FTX associate Nishad Singh, according to people familiar with the matter.

If federal prosecutors in Manhattan find Singh had a role in the alleged multiyear scheme at FTX and trading firm Alameda Research to defraud investors and clients, he could be charged as soon as this month, said one of the people. The Securities and Exchange Commission and the Commodity Futures Trading Commission are also probing Singh, said the person, who asked not to be identified discussing the matter.

Not lookin good, on paper at least.

Daniel Friedberg — the former FTX “chief regulatory officer” who was tied to a notorious online poker cheating scandal — has reportedly flipped on Sam Bankman-Fried and has been cooperating with the feds in the epic crypto fraud case.

Friedberg, a member of Bankman-Fried’s inner circle and key legal adviser at FTX, met with investigators on Nov. 22 and detailed how the disgraced founder used customer funds “to finance his business empire,” Reuters reported on Thursday, citing a source with knowledge of the matter.

An 8 billion dollar fraud demands jail time, but Sam’s parents have the Democrat card to play. I expect a fairly quick pardon will be arranged once the dust has settled.

Accused cryptocurrency fraudster Sam Bankman-Fried entered a not-guilty plea at his arraignment in Manhattan federal court Tuesday.

Judge Lewis Kaplan set a tentative trial date of Oct. 2, 2023, for the 30-year-old fallen wunderkind.

It was Bankman-Fried’s second appearance in Manhattan federal court since his extradition from the Bahamas.

He’s got about 10 months to ponder his non-existent defense.

Federal Sentencing Guidelines Spell Deep Trouble for Sam Bankman-Fried

Sam Bankman-Fried is expected to be arraigned in a federal district court in lower Manhattan today, on the indictment obtained by prosecutors in the Southern District of New York in December.

SBF is in deep, deep trouble. The main reason for that, besides what appears to be weighty evidence against him — including the prospective testimony of two close (alleged) accomplices who are cooperating with SDNY prosecutors — is found in the federal sentencing guidelines.

To his credit, Securities and Exchange Commission chief Gary Gensler is arguing that the Sam Bankman-Fried crypto scandal doesn’t mean we need more regulations to rein in digital-coin excess and fraud. Laws are on the books that give the current regulatory and legal system plenty of tools to prosecute bad actors. Plus theft has been illegal since the beginning of civilization.

But if our regulators are properly armed, how did the furry-haired alleged fraudster get away with something that could rival the wrongdoing of the notorious Bernie Madoff and his $65 billion Ponzi swindle?