A few years after graduating college, Sam Bankman-Fried grew worried he was not taking enough risks. So the son of two Stanford Law School professors quit his Wall Street job and in 2017 started a cryptocurrency hedge fund, setting off a sequence of events that culminate next week in his trial for what federal prosecutors have called one of the biggest financial frauds in U.S. history. Two years after launching a hedge fund, Alameda Research, Bankman-Fried founded FTX, an exchange that let users buy and sell digital assets such as bitcoin.
Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York CityNEW YORK - A few years after graduating college, Sam Bankman-Fried grew worried he was not taking enough risks.
He parlayed his wealth into political clout, becoming one of the biggest donors to Democratic candidates and causes ahead of the 2022 U.S. midterm elections. Based in the Bahamas, Bankman-Fried became known for his mop of unkempt curly hair and for wearing rumpled shorts, even when entertaining dignitaries like Bill Clinton.
Asked by a reporter after Bankman-Fried was arrested whether his casual appearance and him being "incredibly bright" had helped him fool people, Manhattan U.S. Attorney Damian Williams responded, "You can commit fraud in shorts and T-shirts in the sun." He was arrested at his luxury apartment in the Bahamas the day before his scheduled testimony, locked up at the country's Fox Hill Prison for 10 days, then extradited to the U.S.Bankman-Fried had little crypto experience before founding Alameda, which initially made money by exploiting differences in prices in digital tokens between the United States and Asia.
He brought on Gary Wang, an old friend from math camp, and later Caroline Ellison, a fellow effective altruist from Jane Street. Both would join him in the Bahamas, where they shared a $30 million penthouse with other Alameda and FTX executives, including Nishad Singh. But if evidence were to emerge that Bankman-Fried had discussions with the cooperating witnesses about hiding what they were doing, it would undermine that argument, Mermelstein said.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sam Bankman-Fried's trial to test dueling explanations for collapse of crypto exchangeIn U.S. prosecutors' telling, Sam Bankman-Fried embezzled money from depositors in his FTX cryptocurrency exchange ever since he launched it in 2019, and the resulting shortfall led directly to its collapse as crypto prices swooned last year. But in his own version and in explanations put forth by his lawyers, Bankman-Fried thought FTX, like a bank, could make investments with customers' money as long as they were able to withdraw it - and he did not know that actions taken by his closest colleagues had jeopardized the availability of funds. Over the course of six weeks starting on Oct. 3, a federal jury in Manhattan is due to weigh these dueling narratives during Bankman-Fried's criminal trial on fraud charges, before determining whether the 31-year-old former billionaire is guilty on seven counts of fraud and conspiracy.
Read more »
Sam Bankman-Fried's trial to test dueling explanations for FTX's collapseMarket News
Read more »
Factbox-What we know about Sam Bankman-Fried's time in a notorious Brooklyn jailSam Bankman-Fried, the founder of now-bankrupt cryptocurrency exchange FTX, has been preparing for his Oct. 3 trial on fraud charges from behind bars since Aug. 11, when a U.S. judge jailed him for likely tampering with witnesses. U.S. District Judge Lewis Kaplan revoked Bankman-Fried's bail after he shared the personal writings of Caroline Ellison, his former colleague and romantic partner, with a New York Times reporter. Ellison has pleaded guilty to fraud and is set to testify against him.
Read more »
Bankman-Fried prosecutors may show jury evidence of political donations, judge rulesNEW YORK (Reuters) - Prosecutors may show the jury at Sam Bankman-Fried's trial starting next week evidence of the FTX cryptocurrency exchange ...
Read more »
Protecting quarterback Sam Howell is a major issue moving forward for the Washington CommandersThe Washington Commanders' biggest issue coming off a 37-3 loss to Buffalo is their remade offensive line protecting Sam Howell better after giving up an NFL-high 19 sacks through three games — especially with the fierce front of the Philadelphia Eagles up next.
Read more »
Tomato tonnato: Top the best tomatoes you can find with this silky sauce, savoury breadcrumbs and fried capersA recipe from the cookbook Salad Pizza Wine — from Montreal’s Elena restaurant.
Read more »