I wonder is Sam will spend the rest of his life in jail for his scheme that did a lot of people dirty. I also wonder if those who received big contributions from him ought to return that money.
The cap table was made public when things went sideways. You can see a list of investors here: https://app.dealroom.co/companies/ftx and SBF sent the cap table to Forbes which is highlighted in this article: https://www.forbes.com/sites/chasewi...h=695e63f72670
Of course, DUMAC may have exposure through an SPV of some sort.
My Quick Smells Like French Toast.
I am a bit unclear on how exactly DOJ/US Courts have jurisdiction in these criminal allegations. All of the alleged misconduct occurred in a foreign country. While I like the idea of SBF facing justice, I don't think it is our (the US's) place to dish it out. We should not ignore basic legal tenants to extend our laws to places that are not ours. IMHO SBF should face justice in Bahaman courts or not at all.
Also, everyone who invested in FTX did so knowing that it was offshore. The offshore location was a big selling point because it avoided pernicious US government involvement. FTX is the free market libertarian dream. We should not betray that free informed choice made by competent adults. The free market will punish this conduct by depriving SBF of future customers. We should let this lasse faire capitalistic paradise work just as its participants intended.
You want Morlocks and Eloi because that's the end game.
FTX and Alameda Research have US operations and US customers. More importantly, FTX filed for bankruptcy (and it's protection) in a court in Delaware in the US of A. (Side note: Some of those customers want the bankruptcy court to kept their names secret. So they want their money but don't want the world to know). If any one wants to get their head spinning look at a org chart of his operations. There are plenty of countries that can go after him and his cohorts. To bad for them, they didn't commit a crime in Norway. The prisons are nice there.
These political comments are too far, imo. As a libertarian I want to post a huge rebutal of your gross misnderstanding of libertarian principles, but the DBR is not the forum for this discussion.
Please leave politics out of this discussion. Libertarians deserve the same protection as Ds and Rs.
Recovering securities lawyer here, so I can't resist commenting on US jurisdiction, at least under the securities laws. There typically are two kinds of jurisdictional issues under the securities laws. The easiest to establish is fraud; the harder is some sort of registration violation.
All the SEC needs to show to bring a fraud charge is that SBF, while using the "means and instrumentalities of interstate commerce", made materially misleading statements "in the sale of a security" or "in connection with the purchase or sale of a security". The SEC complaint doesn't go into much detail on this test, so it's hard to know if there is much of the case here.
Having said that, there clearly were US investors in FTX, and SBF appears to have used things like Twitter to make statements, so I don't think the SEC's case is going to be all that difficult to establish.
There is a related jurisdictional question as to whether FTX should have registered as a US securities exchange. The SEC has not alleged a registration violation and I doubt it will.
Bankman-Fried entered a not-guilty plea at his arraignment in Manhattan federal court early this afternoon. He was met by a sizable media scrum when he arrive at court with his legal team and his mother. Judge Lewis Kaplan set a tentative trial date of Oct. 2, 2023. My understanding is that he could face up to 115 years behind bars if convicted of all charges.
He should go to prison for life, he made many people believe that money grew on trees and took their life savings.
Also, anyone who he gave money to, to try to gain political gain, should return those "contributions".
Yup. Many have either donated the money to charity or are waiting for the court to tell then where to send it. There is little word or action from Congress people that took the money without the publicity.
I have sympathy for people that lost money because of the theft…any theft. What you are taking about are two separate things. Anyone that lost money on a spec asset without due diligence is responsible for their own actions. We have a years long thread about that and how to prevent it. Short answer: Mirages aren’t real.
Last edited by Kdogg; 01-03-2023 at 05:00 PM.