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When a spreadsheet listing Sam Bankman-Fried’s venture investments was published by the Financial Times earlier this month, a couple of lines stood out. They showed the former cryptocurrency kingmaker’s hedge fund, Alameda Research, had invested a total of $400 million into a company called Modulo Capital.Though this amounted to one of Bankman-Fried’s largest venture capital bets, Modulo’s identity was a mystery, giving rise to plenty of speculation. Was it a Brazilian fund manager with a nearly identical name (besides an accent mark over the first letter O)?No. It’s a multi-strategy hedge fund founded early this year by two former Jane Street traders and one developer, a person familiar with the matter told CoinDesk.Modulo Capital did not respond to a request for comment, nor did Bankman-Fried or former Alameda CEO Caroline Ellison.
The current state of Binance can be summed up nicely in meme form:CoinDesk - Unknown(Twitter)In reality, everything is most definitely Not Fine.Back in 2019 – when Sam Bankman-Fried (SBF) was still golden and FTX was on the up-and-up – Binance, the largest crypto exchange by trading volume, invested in the now-defunct crypto exchange’s series A. Last year, it exited that transaction after SBF bought out its stake for $2.1 billion.That $2.1 billion payment, according to Binance CEO Changpeng “CZ” Zhao, was received through a combination of BUSD, BNB, FTT and IOUs (presumably – only half-kidding).
With Binance, Everything Is Not Finehttps://www.coindesk.com/consensus-magazine/2022/12/19/cz-binance-crypto-exchange-red-flags-cnbc-ftx/Changpeng “CZ” Zhao runs Binance, which is the largest crypto exchange. Trouble is brewing at Binance and could go the way as FTX.
Former CEO of bankrupt crypto exchange FTX, Sam Bankman-Fried has signed the necessary paperwork to begin the extradition process, reports the New York Post, citing Doan Cleare, the acting commissioner of corrections at Fox Hill Prison in The Bahamas.Bankman-Fried is set to appear in court on Wednesday morning to continue the extradition process.CNBC reported that Bankman-Fried will fly to the U.S. the same day, also citing Doan Cleare.
EXCLUSIVE — Sam Bankman-Fried, the disgraced former FTX CEO facing prison time, wined and dined a top government regulator official at a swanky Washington, D.C., restaurant with his FTX colleagues while lobbying for friendly industry regulations, emails show.On Oct. 5, 2021, Bankman-Fried, FTX General Counsel Ryne Miller, and then-FTX President Brett Harrison went to dinner at the luxury Indian restaurant Rasika West End with Dan Berkovitz, who at the time was a commissioner for the U.S. Commodity Futures Trading Commission, one of several agencies that regulate cryptocurrency, according to emails obtained by the watchdog Protect the Public's Trust and shared with the Washington Examiner.It remains unclear what was discussed at the dinner, which occurred while Bankman-Fried was lobbying the CFTC to amend trading rules that would have given FTX more freedom and power over the cryptocurrency world. The former CEO courted the CFTC to back a proposal that would let FTX customers borrow trading money — which some officials reportedly supported secretly even though some regulators lamented it would destabilize markets.
Fallen crypto mogul Sam Bankman-Fried left the Bahamas Wednesday night after he was transferred to US custody, prosecutors said.Bankman-Fried boarded a flight to New York, where he will face fraud and other criminal charges related to the rapid implosion of his cryptocurrency exchange company FTX, Manhattan US Attorney Damian Williams announced.The alleged fraudster, who is being prosecuted by the Southern District of New York, will likely appear in front of federal judge Thursday.Bankman-Fried took off from Nassau’s Odyssey Airport and video from Bahamian media shows he was escorted to a private runway by a long police motorcade shortly before 7 p.m.
FTX co-founder Sam Bankman-Fried handed over to US authorities, en route to New Yorkhttps://nypost.com/2022/12/21/sam-bankman-fried-handed-over-to-us-authorities-heading-to-ny/Sam Bankman-Fried is heading to New York to face charges.
Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to charges tied to FTX's collapse, U.S. Attorney Damian Williams announced Wednesday night.The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) also announced charges against the two, saying Ellison manipulated the price of FTT, an exchange token issued by FTX, at exchange founder Sam Bankman-Fried’s direction.The two are cooperating with investigators, Williams announced. The U.S. Attorney for the Southern District of New York (SDNY) did not specify what the two were being charged with. Court records were not immediately available.FTX founder Sam Bankman-Fried was charged with eight crimes by the SDNY earlier this month after he was arrested in Nassau. The charges include money laundering, wire fraud, securities fraud, and campaign finance violations. He is being extradited to the U.S., Williams confirmed in his statement, saying that the FTX founder was in FBI custody and would appear in court "as soon as possible."
Binance, the world’s biggest crypto exchange, is under heavy scrutiny as $22 trillion worth in hidden trades were found, according to a recent report.The exchange is currently attempting to drum up confidence after a surge in customer withdrawals and a massive drop in the value of its digital token, BNB, has it facing a reliability crisisAn assessment of Binance’s corporate filings conducted by Reuters in a special report shows that the primary component behind the growth of its massive Binance.com exchange, which has facilitated trades worth over a total value of $22 trillion this year, has been mostly concealed from public view.Binance said that due to its strong financial position they have been able to manage net outflows of $6 billion over 72 hours last week without “breaking stride” and that they take their “responsibility as a custodian seriously,” reported Reuters.
Update (1330ET): After spending nine days in Bahamian jail, Sam Bankman-Fried arrived in a Manhattan federal courtroom to face fraud charges over the collapse of FTX. Handcuffed and dressed in a blue suit, he appeared at a bail hearing after entering a plea ahead of the hearing.JUST IN: SBF escorted out of courthouse after posting $250 million bail. pic.twitter.com/rUDyaMWnjD— Watcher.Guru (@WatcherGuru) December 22, 2022And then the shocker came: SBF - who is arguably the biggest flight risk in US criminal history - will be released on $250 million bond after consenting to a bail package that include a $250 Million bond, house arrest at his parent's house in Palo Alto, location-monitoring, and the surrender of his passport.According to Assistant U.S. Attorney Nicolas Roos, Bankman-Fried was responsible for perpetrating a “fraud of epic proportions.” However, he chose to allow for bail given that Bankman-Fried opted to waive extradition; furthermore, according to prosecutors the $250MM is the "largest-ever pre-trial bond" although in SBF's case it is just more stolen client funds. That means it won't be a problem to procure it even though just two weeks ago Sam claimed he only has $100,000 left to his name.*BANKMAN-FRIED'S $250 MILLION BAIL BOND APPROVED BY JUDGE IN NYRemember: always steal enough customer money to have a quarter billion in a secret bank account to post bail— zerohedge (@zerohedge) December 22, 2022When agreeing on the bail, US Magistrate Judge Gabriel Gorenstein said that "the risk that Bankman-Fried would flee was small" and said he presented no danger to the public in terms of future financial crimes.As part of his bail agreement, besides his monetary penalty, Bankman-Fried will have to wear an electronic monitoring bracelet, and be disallowed from leaving the Northern District of California. Judge Gabriel Gorenstein added that Bankman-Fried would require “strict” supervision during his stay.
Former Alameda Research CEO Caroline Ellison will not be allowed to leave the continental United States, and must forfeit any proceeds derived from the commission of the offenses she has been charged with, according to a recently unsealed plea agreement with the U.S. Attorney's Office of the Southern District of New York.She will also need to pay restitution of an amount determined by the court.The plea agreement was first obtained by New York's Inner City Press, a publication that covers court proceedings in the city's federal court.The agreement states that if Ellison fully cooperates with the SDNY's investigation, as well as any other law enforcement agency designated by the office, she won't be further prosecuted criminally except for possible criminal tax violations with regard to the wire and commodity fraud charges that resulted from commingling funds between FTX and Alameda accounts. The deal does not guarantee that other agencies will not pursue prosecution at a later date.A court would need to agree to the plea deal for it to be in effect.
Sam Bankman-Fried, the man at the center of the FTX scandal, is back on US soil after having been extradited from the Bahamas to face federal charges. Naturally, because our justice system is about as coherent as a two-year-old quoting Shakespeare, the notorious fraudster was immediately granted bail and is now spending the holidays with his family. The American oligarchy is alive and well.But I digress, there’s a lot more to the FTX scandal than just Bankman-Fried’s fate, and one of the more interesting aspects of the entire ordeal is just how close many Democrats were to him. In fact, according to Politico, a Democrat operative and close advisor to Bankman-Fried named Sean McElwee had a direct backchannel setup with the White House.Sean McElwee had a Slack channel at DataForProgress “that became a rolling convo between McElwee, Biden Admin officials, & some well-known reporters” & “the day after FTX filed for bankruptcy & SBF resigned as CEO, McElwee abruptly shuttered the channel.”https://t.co/dufXMNGCty pic.twitter.com/O2ZXi5iZrx— Jerry Christmas 🎅🏼🎄 (@JerryDunleavy) December 22, 2022That slack channel, which reportedly contained ongoing conversations between McElwee and administration officials (as well as “well-known reporters”) was promptly shut down when Bankman-Fried resigned as CEO. Moreover, McElwee is also a co-founder of Data for Progress and only began negotiating his exit from the organization after FTX collapsed in on itself. If everything was above board, then why would Data for Progress feel the need to cut ties so quickly?
Secret Backchannel Between White House and FTX Operative Revealed, Raises Serious Questions About Biden Involvementhttps://redstate.com/bonchie/2022/12/24/secret-backchannel-between-white-house-and-ftx-operative-revealed-raises-serious-questions-about-biden-involvement-n678403The White House had a back channel with FTX.
PALO ALTO, Calif. — Amid death threats and sudden global infamy, accused FTX fraudster Sam Bankman-Fried and his parents have turned their posh Stanford home into a heavily guarded fortress.The family is shelling out roughly $10,000 a week to have a private Bay Area security firm patrol the leafy, 3,000-square-foot residence with several armed guards working around the clock, sources told The Post.“They’re nervous,” one source said. “There have been death threats. They’re not taking any chances.”
Former FTX chief Sam Bankman-Fried borrowed hundreds of millions of dollars from Alameda Research to purchase his stake in trading app Robinhood Markets (HOOD), according to court documents.In an affidavit provided to a Caribbean court before his arrest, Bankman-Fried said he and FTX co-founder Gary Wang together borrowed over $546 million from Alameda via promissory notes in April and May. They used that money to capitalize Emergent Fidelity Technologies Ltd., the shell corporation that in May bought a 7.6% stake of Robinhood.The affidavit provides a new curveball in the three-way race to lay claim to the 56 million Robinhood shares. Crypto lender BlockFi, FTX Group and Bankman-Fried himself have all attempted to lay claim to the shares, which could be worth over $440 million.
A group of FTX users are asking a U.S. court to make sure they are the first to get repaid in the crypto exchange's bankruptcy proceedings, court filings from Tuesday show.A class-action lawsuit filed with the U.S. Bankruptcy Court for the District of Delaware (the same court where the cryptocurrency exchange filed for Chapter 11 bankruptcy protection in November) accuses former FTX executives of intentionally misappropriating customers' funds to fund risky strategies and a lavish lifestyle in the Bahamas "in direct violation of FTX’s own customer agreements and terms of service.""FTX executive defendants failed to institute any corporate controls and were therefore able to cause, direct or allow the misappropriation of billions of dollars in customer funds and digital assets deposited or held worldwide at FTX," the filing says.
Former cryptocurrency mogul Sam Bankman-Fried is slated for an arraignment on Jan. 3, 2023, wherein he is expected to enter a plea in connection with criminal fraud charges he faces over the collapse of FTX.The digital currency witnessed a near-complete collapse in late November, with investors simultaneously attempting to withdraw their stakes in the firm, leaving it unable to fully remunerate them. Reports quickly emerged of missing assets and suspicious transfers to FTX's sister firm, hedge fund Alameda Research.The Department of Justice announced in December that it was investigating a multi-million dollar hack of the company that occurred shortly after FTX filed for bankruptcy.
FTX founder and accused crypto-crook Sam Bankman-Fried met with senior White House officials on at least four occasions in the months leading up to his firm's massive implosion, Bloomberg reports.On Sept. 8, SBF met with senior Biden adviser Steve Ricchetti in a previously unreported encounter, White House officials familiar with the matter said. The meeting was "the latest in a handful of sessions," according to the report.Bankman-Fried had at least three others previously disclosed in White House visitor logs. They include one April 22 and another May 12, each with Ricchetti, and one a day later, on May 13, with Bruce Reed, another senior Biden aide, officials confirmed. The final meeting is recorded in logs as two meetings held back-to-back, but was one meeting, officials said. Some of the prior White House meetings included others from FTX. -BloombergWhat's more, Bankman-Fried's brother, Gabriel, held a March meeting of his own and was also at the May 13 meeting - bringing the total number up to five meetings that involved one or bother brothers.
SBF Was Meeting With Senior White House Officials Shortly Before FTX Collapsehttps://www.zerohedge.com/political/sbf-met-senior-white-house-officials-ftx-collapseWhat did they know about Sam Bankman-Fried?
I'm pretty sure they wangled 10% out of SBF for the "Big Guy."
The Securities Commission of the Bahamas has taken custody of FTX deposits valued at more than $3.5 billion as of Nov. 12, according to a media release published late Thursday by the SCB.Shortly after FTX filed for bankruptcy, about $372 million worth of tokens were stolen from the exchange by an unknown actor thought to be an external hacker. Given media reports of a cyberattack on FTX, and possible looting of FTX-controlled wallets by former employees, the Commission said in its statement it "determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of [FTX] to the prejudice of its customers and creditors."Assets will be held until the Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them, the statement says.
NEW YORK – Sam Bankman-Fried will go to trial in October.U.S. District Judge Lewis Kaplan of the Southern District of New York ruled on a tentative date for the anticipated weeks-long trial during the former FTX executive’s arraignment in the Manhattan courthouse on Tuesday afternoon. Bankman-Fried, who stands accused on eight different counts including wire fraud and campaign finance violations, pleaded not guilty to all charges via his lawyer at the opening of the hearing.The former CEO of the now-bankrupt crypto exchange made his second appearance in a New York courthouse on Tuesday. Bankman-Fried's first appearance last week resulted in him being released on a personal recognizance bond and, shortly after, flying back to his parents' home in California. His not guilty plea today was expected, according to an earlier report in the Wall Street Journal.
Sam Bankman-Fried Pleads ‘Not Guilty’ to Fraud, Conspiracy Chargeshttps://www.coindesk.com/policy/2023/01/03/sam-bankman-fried-pleads-not-guilty-to-fraud-conspiracy-charges/Sam Bankman-Fried has pleaded not guilty.
