{"id":510462,"date":"2022-11-16T02:13:56","date_gmt":"2022-11-15T23:13:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/will-sbf-face-consequences-for-mismanaging-ftx-dont-count-on-it\/"},"modified":"2022-11-16T02:13:56","modified_gmt":"2022-11-15T23:13:56","slug":"will-sbf-face-consequences-for-mismanaging-ftx-dont-count-on-it","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/will-sbf-face-consequences-for-mismanaging-ftx-dont-count-on-it\/","title":{"rendered":"# Will SBF face consequences for mismanaging FTX? Don\u2019t count on it"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25beef2ca21\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25beef2ca21\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/will-sbf-face-consequences-for-mismanaging-ftx-dont-count-on-it\/#%E2%80%9D_Will_SBF_face_consequences_for_mismanaging_FTX_Dont_count_on_it_%E2%80%9C\" >&#8221; Will SBF face consequences for mismanaging FTX? Don\u2019t count on it &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Will_SBF_face_consequences_for_mismanaging_FTX_Dont_count_on_it_%E2%80%9C\"><\/span>&#8221; Will SBF face consequences for mismanaging FTX? Don\u2019t count on it &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYzQ4ZjRiZDAtZDg2MC00YTM1LTk4ODEtZjMzZTlmZGQ1NGJmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-887bb764>Will former FTX CEO Sam Bankman-Fried be held accountable for his mismanagement of investor funds?<\/p>\n<p>After most of the entities tied to his cryptocurrency exchange became insolvent last week, blockchain analysts concluded the insolvencies came as a partial result of the exchange\u2019s trading house, Alameda Research, burning through nearly $10 billion in cash that technically belonged to FTX customers. To date, the company has declined to elaborate on the contractual details that made the arrangement possible \u2014 or legal.<\/p>\n<p>In the aftermath of FTX\u2019s collapse, skeptics have questioned whether the elite \u2014 in Washington or elsewhere \u2014 will be motivated to investigate the situation with any rigor. Tesla, SpaceX and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> CEO Elon Musk suggested in a Nov. 13 tweet that he was among those critics, sharing an image that ties Bankman-Fried \u2014 also known as \u201cSBF\u201d \u2014 to Securities and Exchange Commission Chair Gary Gensler. Bankman-Fried is a graduate of the Massachusetts Institute of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a>, the image notes, where Gensler served as a professor. And he\u2019s been romantically linked to Alameda Research CEO Caroline Ellison, a Stanford graduate whose father, Glenn Ellison, also teaches at MIT.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"und\" dir=\"ltr\"> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/XpH56PxLgm\">pic.twitter.com\/XpH56PxLgm<\/a><\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1591895343570243585?ref_src=twsrc%5Etfw\">November 13, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>There are also more serious reasons to wonder who might be interested in holding SBF accountable \u2014 like a glowing Nov. 14 interview with SBF published by New York Times writer David Yaffe-Bellany. Noting that SBF had been \u201ccompared to titans of finance like John Pierpont Morgan and Warren Buffett,\u201d Yaffe-Bellany says that SBF \u201cdid, however, agree with critics in the crypto community who said he had expanded his business interests too quickly across a wide swath of the industry.\u201d<\/p>\n<p>OK, but what about the allegation that Alameda used more than half of FTX\u2019s $16 billion in customer deposits to make failed trades? \u201cHe said the size of the position was in the billions of dollars but declined to provide further details,\u201d the Times noted before moving on.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The market isn\u2019t surging anytime soon \u2014 So get used to dark times<\/em><\/strong><\/p>\n<p>What about new blockchain evidence that indicates Alameda used advanced knowledge of which assets FTX would list in order to inform its purchases? Such \u201cfront-running\u201d is a form of insider trading \u2014 one that an attorney might argue is illegal. The Times failed to even broach the issue.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Disgraceful reporting by the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nytimes?ref_src=twsrc%5Etfw\">@nytimes<\/a> on FTX. It portrays SBF as a charitable entrepreneur who went under and does not mention the words fraud, criminal, substance abuse, friends &amp; family Bahamas KYC racket, hack, stolen funds or wiped servers anywhere.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/rBJ7O0L4sV\">https:\/\/t.co\/rBJ7O0L4sV<\/a><\/p>\n<p>\u2014 Alex Kr\u00fcger (@krugermacro) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/krugermacro\/status\/1592288944766750720?ref_src=twsrc%5Etfw\">November 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Media infatuation isn\u2019t the only advantage SBF enjoys. As some observers \u2014 not the New York Times, but others \u2014 have noted, he also holds a degree of political influence accrued from hours spent consorting on Capitol Hill, in addition to the tens of millions he has spent on contributions. His $5.2 million donation to President Joe Biden\u2019s 2020 presidential campaign made him its second-largest CEO donor. He gave another $39.8 million to political action committees and candidates primarily affiliated with Democrats in 2022.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Let\u2019s move on from FTX\u2019s collapse and get back to the basics<\/em><\/strong><\/p>\n<p>Of that figure, $27 million went to a group called Protect our Future. The group <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.opensecrets.org\/political-action-committees-pacs\/protect-our-future-pac\/C00801514\/summary\/2022\">reported<\/a> spending around $24 million directly on candidates\u2019 races \u2014 including $250,000 in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/projects.propublica.org\/itemizer\/races\/2022\/states\/nj\/house\/8\">support<\/a> of New Jersey\u2019s newly elected Representative Robert Menendez Jr., whose father sits on the Senate Banking Committee and Senate Finance Committee. (As some may recall, a federal jury dropped corruption charges against Menendez Sr. in 2017 after failing to reach a verdict. A Menendez spokesperson said in October that he was facing a new federal probe over similar allegations.)<\/p>\n<p>Perhaps it\u2019s understandable that some observers are wondering whether SBF has faced the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate level of regulatory scrutiny \u2014 or whether he will in the future. \u201cI want to know how many whistleblower complaints were filed with the SEC tipping them off to FTX\u2019s fraud,\u201d the Blockchain Association\u2019s policy chief, Jake Chervinsky, wrote in a Nov. 15 tweet, before referencing a March 23 meeting between Gensler and SBF. \u201cI want to know how many were filed before FTX met with Chair Gensler\u2019s office to talk about a sweetheart deal. I want to know why our \u2018cop on the beat\u2019 was blind to this.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I want to know how many whistleblower complaints were filed with the SEC tipping them off to FTX&#8217;s fraud.<\/p>\n<p>I want to know how many were filed before FTX met with Chair Gensler&#8217;s office to talk about a sweetheart deal.<\/p>\n<p>I want to know why our &#8220;cop on the beat&#8221; was blind to this.<\/p>\n<p>\u2014 Jake Chervinsky (@jchervinsky) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jchervinsky\/status\/1592521220213583873?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Helius Labs co-founder Mert Mumtaz made a similar comment in a tweet a day earlier. For context, it came in response to an exchange between Democratic Representative Alexandria Ocasio-Cortez and Barron reporter Tae Kim, who alluded to SBF\u2019s rank in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> called League of Legends. \u201cApparently, SBF is worse at playing videogames than @AOC,\u201d Kim tweeted, to which Ocasio-Cortez replied, \u201cVCs [venture capital firms] were impressed by Bronze III??\u201d)<\/p>\n<p>Mumtaz opined with a reference to Alexey Pertsev, the developer jailed this year for writing the code that enabled the crypto-anonymizing service Tornado Cash. \u201cUS politicians when someone writes open-source crypto protocol: straight to jail,\u201d Mumtaz wrote. \u201cUS politicians when someone literally defrauds people out of billions while running a drugged out polycule: \u2018haha he is bad at league.\u2019\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">US politicians when someone writes open-source crypto protocol: straight to jail<\/p>\n<p>US politicians when someone literally defrauds people out of billions while running a drugged out polycule: &#8220;haha he is bad at league&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/h0PX0JLbSj\">pic.twitter.com\/h0PX0JLbSj<\/a><\/p>\n<p>\u2014 mert | Helius (, \u26a1) (@0xMert_) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/0xMert_\/status\/1592371029519011842?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Of course, there are things that regulators and elected officials could do to prove the skeptics wrong. For example, legislators to whom SBF has a connection \u2014 such as the Menendez clan \u2014 could recuse themselves from participating in the inevitable congressional hearings related to FTX\u2019s crash.<\/p>\n<p>Secondly, Gensler and other regulators could aggressively \u2014and publicly \u2014 investigate the ties between FTX US and FTX\u2019s international operations. They could refrain from disingenuously seizing the moment to target completely unrelated projects in decentralized finance (DeFi) \u2014 which are merely bits of code created and sometimes maintained by developers, such as Tornado Cash. The dishonesty inherent to using platforms that fail as an excuse to target their competitors has already led to claims that SBF was a \u201cfed\u201d who intentionally tarnished cryptocurrency. While those claims have mostly been light-hearted to date, it seems nearly certain that they will snowball into real conspiracy theories.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">At this point SBF is either pretending to be delusional or he\u2019s on something\u2026 <\/p>\n<p>Washtraded high FDV low float shitcoins you created are not assets you fed-planted sociopathic clown. <\/p>\n<p>You will be remembered as the biggest fraud in financial history for generations. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/swFUUjXSVl\">https:\/\/t.co\/swFUUjXSVl<\/a><\/p>\n<p>\u2014 Will Clemente (@WClementeIII) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/WClementeIII\/status\/1592572311483584512?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">i am not conspiratorially minded, but the fact that SBF is still on the loose and shit posting on twitter,<\/p>\n<p>after committing massive financial crime,<\/p>\n<p>and we see softball media coverage of the event, and Kevin O&#8217;Leary saying he might work with him again<\/p>\n<p>WTF IS HAPPENING???<\/p>\n<p>\u2014 DCinvestor.eth \u2310\u25e8-\u25e8 (@iamDCinvestor) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iamDCinvestor\/status\/1592644883956867073?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Finally, lawmakers who do take aim at matters related to cryptocurrency and finance could focus on coming up with rules that prevent industry kingpins from using and abusing their customers. That would represent a welcome pivot from the approach taken by congressional Democrats, who have been much more focused on coming up with rules that target the most broke Americans. Take, for example, the Biden administration\u2019s failed proposal to force banks to report data on bank accounts with more than $600 in annual transactions.<\/p>\n<p>We\u2019ll find out soon whether America\u2019s ruling class decides to embrace any of these measures by ejecting SBF from the industry and cracking down on any copycats. But if past is prologue, don\u2019t get your hopes up.<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Rudy Takala<\/strong> is the opinion editor at Cointelegraph. He formerly worked as an editor or reporter in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>rooms that include Fox News, The Hill and the Washington Examiner. He holds a master\u2019s degree in political communication from American University in Washington, DC.<\/div>\n<\/div>\n<p><em>The opinions expressed are the author\u2019s alone and do not necessarily reflect the views of Cointelegraph. This article is for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> information purposes and is not intended to be and should not be taken as legal or investment advice.<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/will-sbf-face-consequences-for-mismanaging-ftx-don-t-count-on-it\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Will SBF face consequences for mismanaging FTX? Don\u2019t count on it &#8220; Will former FTX CEO Sam Bankman-Fried be held accountable for his mismanagement of investor funds? After most of the entities tied to his cryptocurrency exchange became insolvent last week, blockchain analysts concluded the insolvencies came as a partial result of the exchange\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYzQ4ZjRiZDAtZDg2MC00YTM1LTk4ODEtZjMzZTlmZGQ1NGJmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,135234,89897,74898,71511,55229,70934,67874,8575],"class_list":["post-510462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-ftx","tag-sam-bankman-fried","tag-sec","tag-government","tag-law","tag-regulation","tag-united-states","tag-usa"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510462"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510462\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510463"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}