Crypto continues to speed run all of financial history. I wonder how long we have left until we see regulatory structures traditionally done by governments being pushed 

Some time ago I saw a post in another forum asking "why is Geekzone so anti-crypto?" and asking why there aren't many cryptocurrency discussions on a tech forum.

I don't think Geekzone is anti-crypto, just that most of the people here aren't idiots.

I personally think the cryptocurrency space is full of scammers and conmen.

Case in point: SBF’s Inner Circle Was Gathering in “Wirefraud” Signal Group - Tokenist

 

Reportedly, Sam Bankman-Fried and his closest associates—Gary Wang, Nishad Singh, and Caroline Ellison—were using a group chat titled “Wirefraud” when discussing company operations. The group was allegedly created on Signal in hopes the communication would remain secret due to the platform’s reputation for privacy.

 

The penchant for secrecy FTX’s management shared was initially uncovered shortly after the company filed for bankruptcy as it was revealed that much of the internal communication was done via “auto-delete” messages. On the other hand, according to the company’s new CEO, the former management’s fondness for confidentiality never translated into security and proper record keeping. 

 

FTX founder Sam Bankman-Fried arrested in the Bahamas (cnbc.com)

 

FTX founder Sam Bankman-Fried was arrested by Bahamian authorities Monday evening after the United States Attorney for the Southern District of New York shared a sealed indictment with the Bahamian government, setting the stage for extradition and U.S. trial for the onetime crypto billionaire at the heart of the crypto exchange’s collapse.

 

Before his arrest was announced, Bankman-Fried had been expected to testify virtually before the House Financial Services Committee on Tuesday, but his attorneys told CNBC that he will not testify.

 

His arrest is the first concrete move by regulators to hold individuals accountable for the multi-billion dollar implosion of FTX last month.

 

Also, I recommend Web3 is Going Just Great (web3isgoinggreat.com) if you think there is not enough scam and con artists in the cryptocurrency, NFT space.

freitasm:

 

I personally think the cryptocurrency space is full of scammers and conmen.

 

And until  people can be convinced otherwise Crypto will continue to be be niche....

Crypto  (like any fiat currency) relies on TRUST,

Trust that the funky piece of paper in you pocket, or the Bits in you digital wallet, can actually be exchanged for real tangible objects like food, housing and other things essential to modern life..

in its early days Crypto's selling oft point was "you can't trust the government/banks" 

Recent events have demonstrated that Crypto exchanges often suffer this on a much grander scale...

BBC - Crypto boss Bankman-Fried faces eight criminal charges

breaking

 

The new charges

 

According to a document unsealed by a New York court on Tuesday, prosecutors are charging Bankman-Fried with eight counts. They are:

 

•     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
•     Conspiracy to Defraud the United States and Violate Campaign Finance Laws 

Financial News - Sam Bankman-Fried’s parents were there for his rise. Now they’re there for his fall

13 Dec 2022

Sam Bankman-Fried, founder of the collapsed exchange FTX, always stood apart from other cryptocurrency entrepreneurs, and it wasn’t for his baggy shorts or taste in videogames.

 

Both his parents, as Bankman-Fried would note in meetings with Washington policymakers, are professors at Stanford Law School. 

 

Their reputations were a credential to their son as he grew his crypto empire, even to those inclined to see little value in the industry. ...

 

They have been in the Bahamas with their son for more than a month, as the company’s problems have cascaded.

 

They have told friends that their son’s legal bills will likely wipe them out financially.

 

In my opinion he is just another scammer/conman. He fled to the Bahamas and started giving interviews like he is the good guy.

He is not the good guy.

 

freitasm:  ... He is not the good guy.

 

The NY Times -  Sam Bankman-Fried Used FTX for ‘Old-Fashioned Embezzlement’

today

John Ray, the new chief executive officer of FTX, has repeatedly been asked to compare the collapse of the company to another famous failure he oversaw - Enron.

 

Ray has said these are very distinct disasters. 

 

He called the perpetrators of Enron’s crimes “highly sophisticated,” whereas FTX’s executives were simply engaged in “old-fashioned embezzlement.” ...

 

Sam Bankman-Fried’s lies, prosecutors say, stretched back to the very beginning.

 

From the founding of his cryptocurrency exchange FTX in 2019, Mr. Bankman-Fried engaged in widespread fraud, the federal authorities charged on Tuesday, and used his customers’ deposits to finance his political activities, buy lavish real estate and invest in other companies.

 

And most people pushing cryptocurrencies on social media, conferences, etc are just doing the usual pump and dump or pyramid schemes.

There's no way to take these people seriously.

freitasm:

 

And most people pushing cryptocurrencies on social media, conferences, etc are just doing the usual pump and dump or pyramid schemes.

 

There's no way to take these people seriously. 

Been around a while. You'd think we would have learned by now. Was Tulip Mania really the first great financial bubble?

Just prior to the 1987 share market crash, I decided things had got completely out of whack when a work colleague told me that his son's rugby club had stopped fundraising and were just investing in shares now.

ezbee:

Thank goodness there are safe investments like NFTs :-) 

Tulips... Hmmm...
Get a retiring Sports star or WWF personality to front the thing.
New revolutionary blockchain currency backed by real assets, tulip varieties.
Add a whole bunch of influencers, paid with % tulip token per customers they bring in.
With more tokens you can acquire more valuable rare tulips to exchange for more tokens.

I expect that money would be flooding long enough to find a locale without many extradition treaties and a discrete banking system. This is tricky bit.

If you flee to a haven, be very careful of what haven you flee to.
SBF no longer in luxury apartment.

Now in... 

Foxhill Prison in Bahamas which is notorious.
To point that criminals don't fight extradition to get out quickly. 
6 prisoners per cell sanitation is a bucket.
Cells infested with rats, and insects.
Plus Bahamian gangs. 

Bahamas says prison has been renovated and rats moved out. Nothing to see here. 
https://cointelegraph.com/news/sbf-s-bahamian-prison-reported-for-harsh-conditions-and-degrading-treatment-us-state-dept

See? Fraudsters - FTX's Gary Wang, Alameda's Caroline Ellison plead guilty to federal charges, cooperating with prosecutors (cnbc.com)

 

FTX co-founder Gary Wang and former Alameda Research co-CEO Caroline Ellison both pleaded guilty to federal charges in the Southern District of New York, U.S. Attorney Damian Williams said in a message Wednesday.

 

Wang pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud and conspiracy to commit securities fraud. Ellison pleaded guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.

 

 

 

 

The charges were released the same night that former FTX CEO Sam Bankman-Fried was en route from the Bahamas to New York, where he faces eight federal criminal charges from the same prosecutors who accepted plea deals from Ellison and Wang.

 

I just read that Sam getting bail on a US$250M bond? Investors must be loving that. What a waste of money

lurker:

I just read that Sam getting bail on a US$250M bond? Investors must be loving that. What a waste of money

lurker:

 

I just read that Sam getting bail on a US$250M bond? Investors must be loving that. What a waste of money

 

The $250 million is pure symbolism, just like FTX, 

He has not paid a $250 million bond or any portion of it, 

Its a "personal recognizance" bond that is secured over his parents house,-

IF he failed to show or violates his bail (I think he has to wear an ankle bracelet and stay at his parents house) then the bond becomes payable. - but they simply don;t have it so they would just take the house and potentially bankrupt his parents (both Stanford professors)

https://blockworks.co/news/sbf-wont-actually-pay-250m-for-his-bail-bond

Just a Ponzi Scheme... The Great Crypto Scam. - YouTube