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☆ Disgraced FTX founder Sam Bankman-Fried is no longer listed on Giving Pledge, the group of billionaires who promise to give away their fortunes
▼ + stars: | 2022-12-14 | by ( Grace Eliza Goodwin | ) www.businessinsider.com time to read: +2 min

FTX founder Sam Bankman-Fried is no longer listed on the website for the Giving Pledge. The Giving Pledge is a collection of billionaires who promise to donate portions of their fortunes. Bankman-Fried joined a number of high-profile billionaires, including Warren Buffet and Bill Gates, when he signed the Giving Pledge in June. But, after the dramatic collapse of his crypto exchange FTX, which led to his personal downfall, Bankman-Fried no longer has a massive fortune to give away. Once worth $26 billion, Bankman-Fried has said his fortune is now worth "next to nothing," according to Bloomberg.

FTX founder Sam Bankman-Fried (2nd L) is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas on December 13, 2022. Days before FTX's bankruptcy filing last month, co-CEO Ryan Salame told Bahamian authorities that founder Sam Bankman-Fried may have committed fraud by sending customer money from the crypto exchange to his other firm, Alameda Research. According to a filing on Wednesday tied to FTX's bankruptcy proceedings, Salame disclosed "possible mishandling of clients' assets" by Bankman-Fried. FTX declared bankruptcy on Nov. 11. Like Bankman-Fried, Salame was a significant political donor, donating $20 million to Republican causes.

☆ 'O.C.' star and crypto critic Ben McKenzie tells lawmakers that the crypto market is the 'largest Ponzi scheme in history'
▼ + stars: | 2022-12-14 | by ( Carla Mozée | ) www.businessinsider.com time to read: +4 min

The crypto market is the "largest Ponzi scheme in history," actor-turned-crypto critic Ben McKenzie said Wednesday. McKenzie, who co-wrote a book about crypto, testified to the Senate Banking committee about the fall of FTX. McKenzie was referring to financier Madoff who in 2009 was convicted of running a decades-long Ponzi scheme that conned his investors out of $65 billion and which collapsed during the 2008 financial crisis. In my opinion, the cryptocurrency industry represents the largest Ponzi scheme in history," said McKenzie, who co-wrote "Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Fraud". "They have been lied to, in ways both big and small, by a once-seemingly mighty crypto industry whose entire existence in fact depends on misinformation, hype, and yes, fraud."

FTX attorney James Bromley told Dorsey that the Bahamian government has previously obtained information from FTX Digital Market's liquidators and used it to siphon digital assets away from FTX. The Securities Commission of the Bahamas (SCB) has previously disputed FTX's "misstatements" about the Bahamian government's response to FTX's collapse. Chris Shore, an attorney for the Bahamas-based liquidators, told Dorsey that the liquidators were not working at the direction of the Bahamian government. Dorsey began the hearing by asking whether FTX and the Bahamas liquidators could reach a compromise on data sharing before Bromley shot that suggestion down. "Unlike the Chapter 11 process, there is no transparency in the process in the Bahamas," Ray said.

☆ Photos show disgraced FTX founder Sam Bankman-Fried cuffed in Bahamas on his way to jail
▼ + stars: | 2022-12-14 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

TOPSHOT - FTX founder Sam Bankman-Fried (C) is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas on December 13, 2022. - Disgraced cryptocurrency tycoon Sam Bankman-Fried was hit with multiple criminal charges December 13, 2022, accused of committing one of the biggest financial frauds in US history. FTX founder Sam Bankman-Fried (2nd L) is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas on December 13, 2022. Sam Bankman-Fried, founder of FTX, left, and his mother Barbara Fried at the Magistrate's Court in Nassau, Bahamas, on Tuesday, Dec. 13, 2022. Bankman-Fried was denied bail by a judge, leaving the disgraced co-founder of crypto giant FTX behind bars.

☆ Parents of Sam Bankman-Fried face scrutiny over their roles in FTX
▼ + stars: | 2022-12-14 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

Now, Joseph Bankman and Barbara Fried, the FTX founder’s parents, may face legal troubles of their own. Bankman-Fried’s lawyer declined to comment when asked about scrutiny of his parents. The new CEO of FTX is John Ray III, a restructuring expert tasked with shepherding the company through its complex bankruptcy. They have told friends that their son’s legal bills will likely wipe them out financially, according to the paper. A judge ordered that Bankman-Fried must remain in custody after denying a request for bail, calling him a flight risk.

☆ The Bahamian prison where Sam Bankman-Fried is headed is notorious for its harsh conditions, with one report detailing inmates removing human waste by bucket and living with rat infestations
▼ + stars: | 2022-12-14 | by ( Erin Snodgrass | ) www.businessinsider.com time to read: +4 min

Fox Hill is known to be overcrowded and have unsanitary conditions, per human rights reports. The sheer number of Bahamian prisoners means Fox Hill is overpopulated, and conditions at the facility suffer as a result. Fox Hill has several different housing facilities, including a female block and sections with varying levels of security. A 2021 human rights report on the Bahamas by the US State Department revealed even more about Fox Hill. Prisoners also said they have been denied prompt medical care, as well as access to psychological care while at Fox Hill.

Lawmakers are generally in agreement that crypto firms should have greater regulation, but there are divergent views on how the industry should be regulated. U.S. prosecutors on Tuesday charged FTX founder Sam Bankman-Fried with money laundering and fraud, among other violations. "It is time for Congress to make the crypto industry follow the same money-laundering rules as everyone else," U.S. She and Republican Senator Roger Marshall from Kansas earlier announced legislation aimed at closing money laundering loopholes in the crypto industry. Without U.S. regulation, the value of crypto investments could disappear, said hearing witness and American University law professor Hilary Allen.

☆ Sam Bankman-Fried denied he was part of a secret chat group called 'Wirefraud' alongside other top FTX executives
▼ + stars: | 2022-12-14 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried denied he was in a secret chat group called "Wirefraud" in a tweet on Monday. The former FTX CEO was arrested and charged with eight counts of fraud and conspiracy this week. Although the chat group was set up to keep communications hidden, the contents of it will become public throughout legal proceedings, AFR reported. FTX did not immediately respond to Insider's request for comment about the chat group, made outside of normal working hours. Hours after Bankman-Fried denied involvement in the chat group, he was arrested by Bahamian authorities.

☆ Meet Sam Bankman-Fried's family: His parents are Stanford law professors, his aunt is a dean at Columbia, and his brother is the founder of a nonprofit
▼ + stars: | 2022-12-14 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Sam Bankman-Fried was raised in an academic family based in Silicon Valley. Sam Bankman-Fried cofounded FTX in 2019 and was its CEO. FTXFTX founder Sam Bankman-Fried was arrested in the Bahamas on Monday, in a spectacular fall from grace after his crypto exchange collapsed last month. In November, Reuters reported that a $16.4 million house in the Bahamas listed Bankman-Fried's parents, Joseph Bankman and Barbara Fried, as signatories. Here are some of the prominent members of Bankman-Fried's family.

☆ A market downturn hasn't made activist investing any easier. Here's why.
▼ + stars: | 2022-12-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +4 min

But even with a market downturn, activist investors' campaigns haven't been the cakewalk some might expect. Insider's Daniel Geiger, Rebecca Ungarino, and Casey Sullivan spoke to industry insiders — including famed activist investor Carl Icahn — about why the current landscape isn't as accepting as some might think to activist campaigns. But when the going gets tough, the tough get going, and a difficult market environment doesn't mean we'll see the number of campaigns decrease. Click here to read more about why top activist investors like Carl Icahn say this line of work is riskier than ever. Here's a five-step plan to help you decide when that side gig you have should be the only gig you have.

☆ FTX's new CEO accused the collapsed crypto exchange of 'old school' embezzlement that was 'not sophisticated at all'
▼ + stars: | 2022-12-14 | by ( Matthew Loh | ) www.businessinsider.com time to read: +3 min

FTX's new CEO has accused the collapsed crypto exchange of "old school" embezzlement. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyFTX's new CEO has accused the crypto exchange of "old school" embezzlement in scathing congressional testimony. "This is really just old-fashioned embezzlement," Ray said. This is just plain old embezzlement. Old school, old school."

The Senate Banking Committee on Wednesday is holding a second day of hearings this week on the downfall of cryptocurrency exchange FTX, examining how the company's implosion could impact the nascent industry. Old school, old school." Bankman-Fried was charged by federal prosecutors in the Southern District of New York for a wide variety of crimes including wire fraud, securities fraud and violating campaign finance regulations. Though Ray and Bankman-Fried won't be part of the Senate Banking hearing on Wednesday, four cryptocurrency experts will be testifying instead, including Kevin O'Leary, a longtime paid FTX spokesman. "In my opinion, it is the largest Ponzi scheme in history by an order of magnitude."

[1/3] The prison where Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, is being held after his arrest is seen in Nassau, Bahamas December 14, 2022. REUTERS/Maria Alejandra Cardona/File PhotoDec 13 (Reuters) - Prisoners faced rodents and a lack of toilets in the Bahamas detention center where Sam Bankman-Fried will be held, according to a 2021 U.S. State Department report, though local authorities says conditions have since improved. The 30-year-old Bankman-Fried arrived at a Bahamas court on Tuesday for his first in-person public appearance since the spectacular collapse of cryptocurrency exchange he founded. Cleare said on Tuesday that prison conditions have greatly improved thanks to a renovation program that has built new cells. The Bahamas Department of Correctional Services did not immediately respond to a request for comment on the videos.

☆ Binance withdrawals jumped to $3 billion in 24 hours, Nansen says
▼ + stars: | 2022-12-14 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Investors withdrew as much as $3 billion from Binance on Tuesday, according to blockchain analytics firm Nansen, as a deluge of negative headlines about the cryptocurrency industry rattled users of the world’s largest exchange. Andrew Thurman, content lead for Nansen, told CNN that at its peak, Binance saw “as high as $3 billion in net outflows” over a 24-hour period. Binance CEO Changpeng Zhao said that the exchange had at one point seen “some withdrawals” of roughly $1.1 billion. The founder of Binance’s one-time competitor, Sam Bankman-Fried, was arrested in the Bahamas this week after US prosecutors filed criminal charges against him. On Tuesday, Bankman-Fried was indicted in the United States on eight criminal charges including wire fraud and conspiracy.

REUTERS/Dante Carrer/File PhotoNASSAU, Dec 13 (Reuters) - Cordoned-off roads, a sweltering courtroom and numerous delays marked Sam Bankman-Fried's first in-person public appearance since his crypto company collapsed. The Bahamas courtroom hearing, conducted over the course of six hours, saw Bankman-Fried, dressed in a suit rather than his typical t-shirt attire, seeking bail to dispute his extradition to the U.S. "I'm not waiving," Bankman-Fried said when asked if he would seek to waive his right to an extradition hearing. At the start of the proceedings, Bankman-Fried asked to change an Emsam patch, a medical strip applied to the skin that is used to treat adult depression. Bankman-Fried's defense counsel pointed out that Bankman-Fried had spent weeks in The Bahamas after his business collapsed without attempting to leave the country.

☆ Sam Bankman-Fried tried to use his vegan diet to get released from jail after he was arrested in the Bahamas: reports
▼ + stars: | 2022-12-14 | by ( Grace Eliza Goodwin | ) www.businessinsider.com time to read: +2 min

A Bahamian judge denied FTX founder Sam Bankman-Fried's request to be let out on bail. Bankman-Fried's lawyer argued that he should be released because of his vegan diet and reliance on several medications. His lawyers said Bankman-Fried needed to keep to his vegan diet and had to take a number of medications, including Adderall and Zyrtec, according to reports. Bankman-Fried's lawyer, Jerome Roberts, said the FTX founder is not a flight risk because he owns real estate in the Bahamas, CoinDesk reported. A phone number listed for Bankman-Fried's lawyer in the Bahamas went to voicemail.

☆ Disgraced FTX CEO Sam Bankman-Fried 'orchestrated yearslong fraud' on investors and customers, SEC and criminal charges say
▼ + stars: | 2022-12-13 | by ( Marlene Lenthang | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | ) www.nbcnews.com time to read: +8 min

Sam Bankman-Fried, the former CEO of cryptocurrency giant FTX, defrauded investors by funneling money into his private hedge fund and conspired to commit wire fraud against customers and lenders, federal authorities said Tuesday. The Manhattan panel indicted Bankman-Fried on eight counts: conspiracy to commit wire fraud on customers, wire fraud on customers, conspiracy to commit wire fraud on lenders, wire fraud on lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to defraud the United States and violate the campaign finance laws. $8 billion loss to customersThe wire fraud on lenders and customers started in or about 2019 and lasted through November, according to the filing. Separately, in a filing Tuesday also in the Southern District of New York, the SEC charged him with defrauding investors and enriching Alameda. FTX CEO pledges continued cooperationAlso Tuesday, the company’s new CEO, John J. Ray III, testified at a congressional hearing on FTX’s collapse and missteps.

☆ FTX owned $256 million of Bahamas real estate including 15 condos in the same building, and the government wants it back
▼ + stars: | 2022-12-13 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

Bahamian regulators are trying to claim $256 million of real estate owned by FTX. Court documents filed on Monday show that FTX owns 35 properties, including 15 multi-million dollar condos in the same building. The most expensive property in the documents is worth $30 million, suggesting that the Bahamas is trying to claim Bankman-Fried's apartment. At One Cable Beach — another luxury community where FTX owns four properties — apartment plans on the same floor show a nearly 3,000 sq-ft home with a wraparound balcony. The company was only used to hold Bahamas real estate, and "has no assets here, no creditors here, and it never has done business here."

☆ FTX was a 'house of cards' built on a 'foundation of deception,' SEC boss says in scathing statement about Sam Bankman-Fried
▼ + stars: | 2022-12-13 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +2 min

The SEC has accused FTX of being a "house of cards" built on a "foundation of deception," in a statement. The SEC released charges on Tuesday morning, accusing Bankman-Fried of a "years-long" fraud. In its complaint, the SEC announced it had charged the FTX cofounder, Sam Bankman-Fried, with "orchestrating a scheme to defraud" FTX investors. SEC Chair Gary Gensler said in the statement: "We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto." The director of the SEC's Division of Enforcement, Gurbir S. Grewal, accused FTX of operating "behind a veneer of legitimacy" that was created by Bankman-Fried, per the Tuesday press release.

☆ Breakingviews: FTX sins don’t absolve its big-money enablers
▼ + stars: | 2022-12-13 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +4 min

NEW YORK, Dec 13 (Reuters Breakingviews) - The U.S. Securities and Exchange Commission wants everyone to know that Sam Bankman-Fried was a bad actor. The financial watchdog and the Commodity Futures Trading Commission on Tuesday alleged that the founder of bankrupt currency exchange FTX committed fraud, while federal prosecutors made a criminal case. The U.S. government, meanwhile, has accused Bankman-Fried of eight criminal violations, ranging from wire fraud to conspiracy to commit money laundering. Follow @thereallsl on TwitterloadingCONTEXT NEWSU.S. federal prosecutors filed a criminal lawsuit against Sam Bankman-Fried, alleging he committed fraud and violated campaign finance laws. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission also alleged Bankman-Fried committed fraud in complaints filed on Dec. 13.

Attorneys Office for the Southern District of New York charged the disgraced crypto executive with eight criminal counts: conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations. "This is really just old fashioned embezzlement. Old school, old school." The Senate Banking Committee had also asked Bankman-Fried to testify at a Wednesday hearing that he previously refused to attend. Ryan Salame, the co-CEO of FTX Digital Markets, donated another $23 million, with the majority of his contributions heading toward Republicans.

☆ Sam Bankman-Fried hit with 8 criminal charges, including fraud and conspiracy for allegedly 'misappropriating' FTX customer funds
▼ + stars: | 2022-12-13 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +3 min

A grand jury indictment against Sam Bankman-Fried was unsealed Tuesday. Prosecutors in New York accused him of mixing the coffers of FTX and Alameda Research. The 8 criminal charges against him include wire fraud, conspiracy to commit money laundering, and conspiracy to defraud the US and violate the campaign finance laws. In charges unsealed Tuesday morning, a grand jury indictment laid out the 8 accusations against Bankman-Fried, alleging he directed FTX customer funds to "pay expenses and debts of Alameda Research." The indictment alleged that FTX customer funds went toward paying off Alameda Research's debts or inappropriately put toward investments, and that Alameda's own lenders were given "false and misleading information."

☆ Citi downgrades Robinhood, says crypto uncertainty will weigh on trading platform
▼ + stars: | 2022-12-13 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Crypto pressures will keep shares of trading platform Robinhood in check, according to Citi. The situation could prompt to the liquidation of Sam Bankman-Fried's 56.3 million shares, or 7.4% of shares outstanding, of Robinhood outstanding shares in Robinhood. Lower crypto trading revenues have weighed on prices and raised concerns among investors and customers, Allen said. He expects Robinhood's trading revenues from crypto to fall by 50% or more in 2022 and 2023. He said he remains cautiously optimistic for options, which should see 6% and 14% trading growth in 2023 and 2024.

☆ The head of the legal system in the Bahamas said the US will 'likely' ask for Sam Bankman-Fried's extradition
▼ + stars: | 2022-12-13 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +2 min

The US is "likely" to request Sam Bankman-Fried be extradited to the US, the Bahamas attorney general said. The attorney general indicated the Bahamas intended to extradite Bankman-Fried if requested. The disgraced crypto founder was arrested in the Bahamas on Monday, according to US authorities. The Bahamas attorney general said in the statement that the US had filed criminal charges against Bankman-Fried and was "likely to request his extradition." Representatives for the Bahamas attorney general office did not immediately respond to Insider's request for comment made outside normal working hours.

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