FTX cryptovillain Sam Bankman-Fried charged with bribing Chinese officials
- Reference: 1680085450
- News link: https://www.theregister.co.uk/2023/03/29/us_charges_ftxs_sam_bankman/
- Source link:
The [1]indictment [PDF] alleges the Chinese government froze over $1 billion worth of Alameda Research digital assets and that after SBF tried to secure access he broke out the checkbook.
The funds were frozen as part of an investigation into an Alameda counterpart. According to the indictment, SBF and others needed the assets to fund additional Alameda trading activity, to try to keep the business going as the proverbial wheels were coming off the FTX wagon.
[2]
SBF had publicly proclaimed Alameda was nothing more than a "liquidity provider" to FTX and a "wholly separate entity," while privately it was given the ability to maintain a negative balance, a multi-billion-dollar line of credit, and could borrow funds without collateral. Alameda's credit limit at one point was $65 billion.
[3]
[4]
By November 2022, efforts to keep capital liquid were outpaced by FTX customer withdrawals, at which point FTX halted trading and filed for bankruptcy. Thousands of customers were officially separated from billions of dollars worth of saving and investment capital.
SBF's arraignment on his new charge of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act is scheduled for Thursday.
[5]
According to [6]Reuters , a "not guilty" plea is expected.
[7]FTX fiasco founder SBF faces further fraud charges
[8]Where in the world is Terraform Labs villain Do Kwon? Montenegro, actually
[9]Attackers hit Bitcoin ATMs to steal $1.5 million in crypto cash
[10]B-List celebs including Lindsay Lohan fined after crypto shill probe
Also on Tuesday – the same day SBF's lucky 13th indictment was revealed – courts set new bail terms that restrict the defendant's access to electronic devices. The court hopes to control his use of messaging apps and virtual private networks (VPNs), thereby preventing witness tampering.
The former FTX CEO is allowed a monitored laptop, loaded only with select software, and a phone that can only send and receive voice calls and texts over telco networks. No encrypted or ephemeral calling or messaging is allowed, nor is mobile internet.
Among the selected software is password manager service 1password. A VPN can only be used under supervision to access a database while preparing for his defense.
The laptop's USB ports are to be rendered inoperable.
[11]
According to [12]court documents , SBF is prohibited from using "any other cellphones, tablets, computers, videogames (including video game platforms and hardware) that permit chat or voice communication, or 'smart' devices with internet access."
SBF is allowed to access a list of fairly boring pre-approved websites to prepare his defense, and a few for personal use. Unfortunately The Register did not make the cut.
We'll live.
In addition to misappropriating customer funds to plug multi-billion-dollar holes, SBF is accused of making illegal campaign donations to garner political influence. He has denied stealing money, but acknowledges inadequate risk management.
SBF's charges could earn him over 155 years in prison if convicted. So far, he's [13]pleaded not guilty to eight criminal counts of fraud and conspiracy, and awaits arraignment on five other counts. He remains out of jail on a $250 million bond and is currently under house arrest at his parents' Palo Alto home.
The crypto bro is not allowed to use mom and dad's devices, which are password protected and equipped with monitoring software that photographs the user's face every five minutes.
The trial is set for October 2. ®
Get our [14]Tech Resources
[1] https://regmedia.co.uk/2023/03/29/sbf_ftx_indictment_13_chinese_bribery.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cybercrime&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZCRgoAt8x102pkD9WS@vuAAAAFU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cybercrime&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZCRgoAt8x102pkD9WS@vuAAAAFU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cybercrime&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZCRgoAt8x102pkD9WS@vuAAAAFU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cybercrime&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZCRgoAt8x102pkD9WS@vuAAAAFU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.reuters.com/legal/ftxs-bankman-fried-charged-with-bribery-conspiracy-new-indictment-2023-03-28/
[7] https://www.theregister.com/2023/02/23/sbf_additional_charges_ftx/
[8] https://www.theregister.com/2023/03/24/do_kwon_montenegro/
[9] https://www.theregister.com/2023/03/23/general_bytes_crypto_atm/
[10] https://www.theregister.com/2023/03/23/lindsay_lohan_crypto/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cybercrime&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZCRgoAt8x102pkD9WS@vuAAAAFU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://regmedia.co.uk/2023/03/29/sbf_ftx_laptop_bail.pdf
[13] https://www.theregister.com/2023/01/05/ftx_cryptocurrency_not_guilty/
[14] https://whitepapers.theregister.com/
Unfortunately The Register did not make the cut.
What will he do without being able to access the [1]List of Reg Standards
[1] https://www.theregister.com/Design/page/reg-standards-converter.html
So... What's to stop Mum & Dad popping down to the store to buy a cheap laptop?
The loss of $250 million in bail money, and a likely trip before the Beak to face charges of helping someone break their bail conditions.
Then again, I can imagine a few parents who would be less than understanding if the kids wanted to move back in, so maybe that would be an easy way to get the house back to themselves...
"The crypto bro is not allowed to use mom and dad's devices, which are password protected and equipped with monitoring software that photographs the user's face every five minutes."
This alone would have been enough for me to tell my sprog to get lost and face the music. I'd also be hanging my head in shame wondering where the hell I went wrong. Here's hoping SBF gets everything he deserves (a small cell, for the rest of his life).
My only question is if it is the prison service that is investigating means to make people live longer. The whole 155 years nonsense just translates to 'life' so I don't know why they bother.
Maybe the bigger the number the smaller the cell? In that case I hope they convict some of their politicians to life standing upright in a box, especially the orange one.
I'm really no fan* of "the orange one", but seriously there are bigger alleged criminals in Washington. They are just greasing the palms of the right people, in the style of SBF. So, I agree with your comment, but just not the last bit "especially the orange one"
As far as I'm aware Orange Man is about to be arrested for something which is just a misdemeanor. They keep trying to convict him of something or other, but none of it seems to stick. Either he's super careful, or he's not actually doing that much which is illegal? Strange how he got raided by the FBI for having secret documents, but when Biden does exactly the same thing it all blows over pretty quickly and isn't that bad after all?
American politics is fucking weird, I don't get it!?
I'd be more worried about the son of the president taking a milti-million $$ "consultancy" with a Ukrainian oil company.
But I guess actual facts don't matter and you just care about which party your corrupt politicians work for (HINT: They are ALL corrupt - it's how your system works. You could fix that by severely limiting donations to parties, and making is punishable not to declare all donations.)
* I think he was right about Germans being dependant on Russian Gas and the WHO being driven by Chinese interests. Perhaps a couple of other things I've forgotten. About everything else I think he was wrong.
Strange how he got raided by the FBI for having secret documents, but when Biden does exactly the same thing it all blows over pretty quickly and isn't that bad after all?
Trump got raided after a months long series of official requests to return the documents known to be in his possession, and the suspicion that there was more was confirmed where the formally approved raid turned up a lot more than was previously even assumed, whereas the discovery of a stray protectively marked document (as the UK calls it) in Biden's case immediately led to the correct procedures being followed, including REQUESTING further searches to ensure there were no other documents, just to be sure (and some were found and returned).
In Trump's case, even more were found after his lawyer asserted in writing "Tha, tha, that's all folks!" (to quote a cartoon) and said lawyer is now in the dock for that.
So, one was wilful illegal retention after repeated opportunities to come clean, and where any allusion that it was all accidental was quickly eradicated by the activity that followed on the request to return the documents, whereas in Biden's case correct process was followed. Mistakes can happen, but if you then get people to hide the documents you (a) knew damn well you had them and (b) you also prove you have no intention to hand them back until forced.
Why is a question, but given his connections and the fact that quite a few folders were empty I would venture a guess that he had not quite finished copying them.
Look, I can't stand the man. I just think it's possible he's not the worst crook. Perhaps the others are just better at hiding it? The man is mostly a fucking idiot. He openly acts like a mafia boss.
Isn't the Biden documents thing the same game / same ballpark? It wasn't a couple of documents, was it? We're talking boxes? How do you "accidentally" put a bunch of secret documents into your own garage?
I don't know why I'm even defending this clown. I retract my previous statement. Lock him up.
Lock him up ? Completely agree.
The major difference between the OHSG and Biden is that Biden cooperated every step of the way. The asshole, on the other hand, lied every step of the way (as usual).
That's why nobody is talking about Biden's case any more. There's nothing more to say.
I assume stoking an insurrection is but a mere nuisance in your world then?
Just curious.
Not a mere nuisance, and some people in Antifa and the CIA should do serious jail time for that crime.
Life imprisonment
A friend of mine lives in a very old house, which has an oubliette under the living room floor - that always struck me as a very cost-effective means of imprisonment. In more recent times it apparently served as an useful tool of pursuasion when dealing with recalcitrant children.
This alone would have been enough for me to tell my sprog to get lost and face the music. I'd also be hanging my head in shame wondering where the hell I went wrong. Here's hoping SBF gets everything he deserves (a small cell, for the rest of his life).
I doubt it. Take a selfie in Capitol Hill, get locked up in solitary. Steal billions, get house arrest. As he already appears to have broken his bail conditions and committed further crimes, why isn't he now in jail? Prosecuters could perhaps waive the $250m bond, or pursue that.
why isn't he now in jail?
The phrase "giving him enough rope top hang himself" metaphorically springs to mind.
Well this is awkward
It seems your bail conditions have been breached as we got a clear picture of your fathers junk while he was engaged in a furious bout of self abuse
Re: Well this is awkward
Nah, he's merely trying to up his footstep count on his Fitbit.
:)
Re: Well this is awkward
The problem was they got 2 hours worth of pictures during that furious bout, as he had a photo of SBF's girlfriend on the screen at the time.
He bribed the CCP?
I think he had that the wrong way around.
Re: He bribed the CCP?
His mistake was using funny money.
Maybe if he'd done that with fiat currency (or, as it's China, BYD currency) he may have had more success.
The court hopes to control his use of messaging apps and virtual private networks
I'd definitely be deterred if violating the order could get me another few years added on to my 155 year sentence.
Talking of security.... my password manager is urging me to change my pwd for TheRegister.
(Apparently following a databreach at TheRegister two months ago.... oooh eer!)
Where? There is nowhere in settings that allows me to change my passord.
There is nowhere in settings that allows me to change my passord.
Hmm. "Don't be silly, of course there is" I thought, since at some point in the last few years I had changed mine.
But then I went to check, and if there is still such an option, it now seems to be non-trivially hidden. Does anyone know where it might have gone?
Re: There is nowhere in settings that allows me to change my passord.
I just checked, you're right. Might want to poke management on the 'about' page.
He bribed the CCP?
"I think he had that the wrong way around."
As far as I can see he is a complete retard which doesn't say much about the intellect and acumen of those who were throwing billions of dollars at the fool. In a Forrest Gumpish way bribing the CCP might have worked :)
If he is facing 150 years then he quite clearly lost the wrong people's lucre. Normally a white collar criminal who has pissed the hard earned of the polloi, up against the wall, gets little more than a slap on the wrist.
Cryptovillain? Is it the villainy that is hidden? Bernie Madoff would be a Securitivillain or Ponzivillain but he definitely a lost a lot of the wrong people's cash.
The villainous duo could share the same cell for the next 130 years.
bribing chinese officials people
"US authorities have charged FTX co-founder Sam Bankman-Fried (aka SBF) with attempting to bribe Chinese officials with $40 million worth of cryptocurrency in exchange for unfreezing trading accounts."
At this point, I doubt a couple of years on top of the hundreds of years he'll get behind bars will change anything for him. Nice to see chinese official people can be bribed with false money, though.
"Alameda's credit limit at one point was $65 billion."
Ah, yes, good risk management involves sensible cap for this, LOL.
"He has denied stealing money, but acknowledges inadequate risk management."
The bullshit is strong with him, no doubt.
SBF Can't Do (Clothes) Laundering
SBF is prohibited from using "any other cellphones, tablets, computers, videogames (including video game platforms and hardware) that permit chat or voice communication, or 'smart' devices with internet access."
SBF: "But Mom, I can't do the laundry! Our washer and dryer are Internet-connected 'smart' devices!"
Magic beans?
Anyone?