pro tip: name your organization something that sounds terrible to sue
Thoughts tagged "FTX"
Short thoughts, notes, links, and musings by Molly White. RSS 
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.](https://storage.mollywhite.net/micro/8729e1a17aee0f377f62_Screenshot-2024-11-13-at-3.26.19---PM.png)
![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.](https://storage.mollywhite.net/micro/7316e71ce58ad56d0e35_Screenshot-2024-11-13-at-3.26.32---PM.png)
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.
his what now?
“People have called me a prison concierge”
the mega-wealthy truly live in a different universe
FTX founder Sam Bankman-Fried has just appealed his conviction. He argues, among other things, that the judge didn't like him.
https://www.courtlistener.com/docket/69143697/28/united-states-of-america-v-bankman-fried/
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”
I get the sense that Judge Kaplan didn’t appreciate Ryan Salame’s recent take-backsies of his petition to have his conviction vacated or the investigation of his partner dismissed. “Notwithstanding defendant’s purported withdrawal without prejudice of his petition”, Kaplan intends to hear arguments on it.
https://www.courtlistener.com/docket/66631292/485/united-states-v-bankman-fried/
Ryan Salame has withdrawn his petition from a week ago, in which he claimed the government had reneged on a promise not to continue their campaign finance investigation into his partner, Michelle Bond.
Bond was indicted on August 22 on campaign finance charges in connection to her unsuccessful 2022 campaign for a House seat in New York. Salame says he's withdrawing his petition now that the indictment has come down "to allow the facts to be developed by Ms. Bond, and a ruling to be made, in her case".
US prosecutors not mincing words in their reply to Ryan Salame’s filing, which they describe as a “shameless and self-serving attempt to renege on his guilty plea in the aftermath of his sentencing.”
They claim that the only representations made to Salame involved conclusions of investigations into his conduct, and they say that in a later meeting they explicitly told Salame’s lawyers that a guilty plea by Salame would not halt any investigations or prosecutions of his partner, Michelle Bond.
They also say that Salame’s attorneys (also attorneys for Bond) were aware of continuing investigations into her as far back as April 15, well before Salame’s sentencing. “It was only after the Court imposed a sentence far above the sentence sought by Salame that Salame now seeks to vacate [his plea].”
Finally, they slam Salame for his post-sentencing behavior — particularly his extensive tweeting — “which has demonstrated a complete lack of remorse and utter contempt for the justice system”. They cite a few of his tweets:
https://storage.courtlistener.com/recap/gov.uscourts.nysd.605906/gov.uscourts.nysd.605906.474.0.pdf
Convicted FTX executive Ryan Salame has filed a document in his case alleging that the US government has reneged on their (verbal) promise not to pursue campaign finance charges against his partner, Michelle Bond.
Bond was previously under investigation for campaign finance issues pertaining to her 2022 Congressional campaign in New York’s District 1.
In June of this year, she launched a think tank pushing for friendly crypto and AI regulation, and a month ago they launched a program aiming to register pro-crypto voters in swing states.
Salame is requesting that either any indictment of Bond be dismissed with prejudice, or his conviction be vacated. He is due to report to prison to begin his 7 1/2 year sentence later this year.