Activity tagged "FTX"

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pro tip: name your organization something that sounds terrible to sue

FTX Trading Ltd. et al, Plaintiffs, against Fair Democracy, Defendant

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Interesting: in the government’s sentencing submission for FTX’s Gary Wang, they note he has “created a tool for the detection of potential fraud in the stock market” and is “in the process of developing a similar tool for cryptocurrency markets” for government use.

The computer coding concepts that Wang implemented at FTX have implications for fraud detection. Since he began cooperating with the Government, Wang has created a tool for the detection of potential fraud in the stock market.1 Specifically, [redacted paragraph] 1. The Government respectfully requests that the portion of its sentencing brief providing details about the fraud detection tools being developed by Wang be maintained under seal. The public disclosure of those details could potentially undermine the effectiveness of the tool. The proposed redaction and sealing will still permit the public discussion of the general nature of Wang’s proactive cooperation.

The tool has significant potential value to the Government. [redacted paragraph] To provide further assistance, Wang is in the process of developing a similar tool for cryptocurrency markets, which – if he is sentenced to a time served sentence – the Government hopes it will be able to take advantage of early next year. Wang’s willingness to use his skills proactively, to help detect other criminal activity in financial markets, distinguishes his cooperation from the vast majority of cooperating witnesses to appear before this Court.

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FTX’s Nishad Singh was sentenced to no jail time, and three years of supervised release. He had pleaded guilty to fraud and money laundering charges, as well as a campaign finance charge, and cooperated with the prosecution.

That just leaves defendant Gary Wang left to be sentenced. I imagine he’s feeling some relief after hearing of Singh’s non-custodial sentence.

This also really underscores the sentencing benefit from cooperation. Ryan Salame, who pleaded guilty but did not cooperate, received 7 1/2 years for a campaign finance charge and a money transmitting charge.

Published an issue of Citation Needed:

Guilty or coerced? Ryan Salame’s last interviews before prison

Molly White and Ryan Salame talking via video call

Unpacking my conversation with FTX executive Ryan Salame, where we discussed his claims that he’s innocent of the charges for which he’s now serving seven and a half years in prison.

Published an issue of Citation Needed:

Caroline Ellison: A woman with agency or a helpless pawn?

A black and white photo of Caroline Ellison, with a larger B&W photo of Sam Bankman-Fried looming behind her, both superimposed atop stormclouds

Why did the former Alameda Research CEO receive only two years imprisonment for her role in the FTX collapse?

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his what now?

'Keep Your Head Down': SBF's Prison Advisor Offers Advice for Caroline Ellison There are steps that former Alameda Research CEO Caroline Ellison can take to make prison a better experience, consultants told Decrypt. André Beganski

“People have called me a prison concierge”

the mega-wealthy truly live in a different universe

Published an issue of Citation Needed:

Issue 67 – Bug out bitcoin

A sheet of lined paper with a “bug out” list, and a photo of a rucksack hanging from a tree branch

Crypto resurfaces on the campaign trail and the FTX fallout continues to unfold. Also, merch!

Published an issue of Citation Needed:

Issue 66 – Pretensions to relevance

A collage of a Stratios ship from Eve Online, the Flappy Bird bird, and Hamster Kombot tokens

FTX fraudster Sam Bankman-Fried says he wants a do-over, and some more ill-received blockchain games suggest “GameFi” has an uncertain future.

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FTX founder Sam Bankman-Fried has just appealed his conviction. He argues, among other things, that the judge didn't like him.

These observations are borne out by the record. As explained in this brief, many of the judge’s rulings were not just erroneous but unbalanced—repeatedly putting a thumb on the scale to help the government and thwart the defense. But that is not all. The judge continually ridiculed Bankman-Fried during trial, repeatedly criticized his demeanor, and signaled his disbelief of Bankman-Fried’s testimony. See supra at 17-18. Equally troubling, he repeatedly mocked defense counsel and discredited their cross-examinations in front of the jury. E.g., A-756 (“let’s stop that, please”; “What part of ‘let’s stop that’ was obscure?”); A-745 (“Could we get to the point.”); A-879 (“This is not an exam for new eyeglasses. I assume he can read it just as well as everybody in the jury box can read it…You can ask him who Johnny Podres was. Let’s move along. He pitched for the Brooklyn Dodgers.”).

https://www.courtlistener.com/docket/69143697/28/united-states-of-america-v-bankman-fried/

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FTX executive Caroline Ellison is seeking a sentence of time served for her guilty plea on seven charges pertaining to the collapse of the FTX cryptocurrency exchange. Her sentencing submission paints her as someone whose “moral compass [was] warped” by Sam Bankman-Fried.

The probation department is also recommending time served, with three years of supervised release. Like Sam Bankman-Fried, she’s hit the maximum of 43 points on the sentencing guidelines, which would equate to a life sentence.

Exhibits include more of her diary entries to support the story that she was deeply unhappy and self-medicating with Adderall, and desperate for Sam Bankman-Fried’s approval and affection.

“I think a good night’s sleep is probably equivalent in productivity to about 7.5mg adderall, with a much nicer side effect profile”

Sentencing memo, exhibits

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