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Thoughts tagged "FTX"

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Sam Bankman-Fried’s mom, a former law professor, has been asked to please stop filing documents on her son’s behalf in regards to his motion for a retrial (where he is supposedly representing himself)

Memorandum Endorsement United States v. Bankman-Fried, 22-cr-0673 (LAK) Ms. Fried is not a member of the Bar of this Court, has not sought leave to appear pro hac vice, and has not filed an appearance. A power of attorney granted by the defendant does not authorize her to seek relief from the Court or otherwise to participate in this litigation. Pridgen v. Andresen, 113 F.3d 391, 392-93 (2d Cir. 1997). The Court of course understands that Ms. Fried is the defendant's mother, was trained and practiced as a lawyer, and has taught at Stanford Law School. Nevertheless, with no disrespect, she lacks standing to file papers or seek relief in this case. Indeed, Bankman-Fried is represented in this matter, to this day, by three members of the Bar who have appeared here and who do have standing to act on his behalf. It is appropriate also to mention the fact that Ms. Fried's attached letter to the Court bears no indication that it was served on the U.S. Attorney's office, which should have been done if the letter had been appropriate in the first place. Moreover, court staff have advised that Ms. Fried or someone so identifying herself left a voicemail message on the chambers telephone line. The Court does not accept telephone calls from litigants or from members of their families. In the circumstances, the due date for any response to the government's opposition to Bankman-Fried's previously filed motion is extended on the Court's own initiative from March 18, to and including March 23. This will afford time within which Bankman-Fried or his counsel may seek a further extension if that is desired and for the government to respond to Ms. Fried's letter. SO ORDERED. Dated: March 16, 2026 Lewis A. Kaplan United States District Judge

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

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

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.

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?

'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

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/

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

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.

ORDER
LEWIS A. KAPLAN, District Judge.
Notwithstanding defendant's purported withdrawal without prejudice of his petition for a writ of error coram nobis or alternatively a writ of audita querula, the parties shall file the papers contemplated by the Court's order of August 21, 2024 on the schedule there set forth. Counsel shall appear for argument on September 12, 2024 as scheduled. Defendant's presence is required and his compliance with this requirement hereby is made a condition of his continued release on bail pending voluntary surrender.
SO ORDERED.
Dated: August 29, 2024
Lewis A. Kaplan United States District Judge

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

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