[HN Gopher] FTX's ownership of a U.S. bank raises questions
       ___________________________________________________________________
        
       FTX's ownership of a U.S. bank raises questions
        
       Author : pranshum
       Score  : 189 points
       Date   : 2022-11-24 16:12 UTC (6 hours ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | classified wrote:
       | The most efficient way to rob a bank is to own it.
        
       | heythere22 wrote:
       | https://archive.ph/jcmWQ
        
       | abzolv wrote:
       | From the article:
       | 
       | "The chairman of FBH is Jean Chalopin, who, along with being a
       | co-creator of cartoon cop Inspector Gadget in the 1980s, is the
       | chairman of Deltec Bank, which, like FTX, is based in the
       | Bahamas. Deltec's best-known client is Tether, a crypto company
       | with $65 billion in assets offering a stablecoin that is pegged
       | to the dollar."
       | 
       | That tells you everything you need to know.
        
         | rkachowski wrote:
         | That absolutely does not tell me everything I need to know. How
         | the hell does the creator of inspector gadget end up mixed in
         | this insanity?
        
           | TacticalCoder wrote:
           | He's deep into the tether/Bitfinex scam since the start, way
           | before Alameda/FTX existed. Now how he ended up there is
           | quite a mistery but it's been known since years and years.
        
         | partiallypro wrote:
         | Tether is the biggest scam in all of crypto, so this tracks.
        
           | [deleted]
        
         | VHRanger wrote:
         | $65B in alleged assets is what they should have said.
        
         | zepearl wrote:
         | Ah, come on: a bank with 3 employees + The Inspector Gadget (+
         | all other weirdness about FTX), who knows what else will come
         | up => I now feel the need to know more, this is just too
         | interesting&weird&funny => I'll wait with trepidation Matt
         | Levine's post about this stuff, maybe with extras. This is
         | almost better than any fiction books/movies.
        
       | meristem wrote:
       | I'll leave aside "the transaction was fraudulently approved" for
       | the moment. I can see a possible, if naive, thought process being
       | "It's a tiny bank, hedge and crypto do absurd types of silly
       | transactions, let's let them burn their cash since they think
       | yolo with their own money."
        
       | JaggerFoo wrote:
       | The PR for the investment doesn't imply nefarious intent.
       | 
       | https://www.prnewswire.com/news-releases/fbh-corp-raises-11-...
       | 
       | Why would they post a PR announcement if they knew it was an
       | illegal transaction?
        
       | fnordpiglet wrote:
       | Touching a bank, even briefly glancing it, is a fast way straight
       | to federal pen if you're attached to anything nefarious.
        
         | quickthrower2 wrote:
         | A small bank, right?
        
           | fnordpiglet wrote:
           | Any bank. Bank charters are attached with enormous
           | responsibilities and consequences.
        
             | quickthrower2 wrote:
             | For big banks: fines yes, prison, usually no.
             | 
             | For example https://www.reuters.com/business/finance/us-
             | fed-terminates-e...
        
       | seydor wrote:
       | How come this FTX case is so vast and seems to encompass
       | everything in the US? From afar, it just seems too much. For
       | example, is Coinbase equally multifaceted ?
        
       | pr0zac wrote:
       | > The chairman of FBH is Jean Chalopin, who, along with being a
       | co-creator of cartoon cop Inspector Gadget in the 1980s, is the
       | chairman of Deltec Bank
       | 
       | wat
        
         | helsontaveras18 wrote:
         | There was another amazing expose of Tether a few months ago all
         | about this. I can't remember if it was on Bloomberg, but that
         | Inspector Gadget bit stuck out to me too.
        
           | bombcar wrote:
           | Gogo gadget bankfraud!
        
         | PTcartelsLOL wrote:
         | So what? I also know one of the producers of Inspector gadget.
         | He lives close to me. It was 1985. Too far gone.
        
       | graeme wrote:
       | I looked into this. They used to do business as Geniome Bank, and
       | their job ads are for "crypto and marijuana". Almost no
       | publicity, though they sponsored a few marijuana events.
       | 
       | Chalopin usually shies away from press, so his personal
       | involvement is odd. His son is also the chief digital officer of
       | the company.
       | 
       | Another curiosity is the old Farmington team is still there,
       | including the presdient, and they still appear to be making
       | agricultural loans, same as they've done for ~150 years.
       | 
       | The Geniome/Moonstone operations appear to be based out of
       | Seattle. Another curiosity not mentioned in this article is that
       | Noah Perlman, COO of Gemini, is on the board of directors along
       | with Chalopin.
       | 
       | "Geniome" is the trademark of a UK based company also owned by
       | Deltec/Chalopin: IFSG. So, Chalopin has an unusal degree of
       | personal involvement here.
       | 
       | Deltec previously invested in a small bank for money laundering
       | purposes, so that could have been what they were going after
       | here, but the amounts seem small. Could have been part of a
       | larger plan which collapsed with FTX.
       | 
       | They're scrubbing employee Linkedin's now.
        
         | TacticalCoder wrote:
         | > "Geniome" is the trademark of a UK based company also owned
         | by Deltec/Chalopin: IFSG. So, Chalopin has an unusal degree of
         | personal involvement here.
         | 
         | And Deltec is a centerpiece behind the tether (USDT)/Bitfinex
         | scam.
         | 
         | People who actually described the Alameda/FTX ponzi scam for
         | what it was since day one have always said it: Alameda/FTX is
         | just a front set up by tether/Bitfinex, made to precisely hide
         | more market manipulation.
         | 
         | The links are becoming clearer: the top lawyers at respectively
         | both Bitfinex and FTX used to be colleagues who... Worked at a
         | firm convicted of fraud for they stole $50 million out of
         | players in an online poker scam (the operator could see the
         | players' cards and would play against them). FTX was,
         | conveniently, a few streets away from Deltec in the Bahamas.
         | 
         | Everything checks out: countless "little" companies to try to
         | funnel the money out of the US (including small banks which, as
         | is now a fact, shared/exchanged between tether and FTX), the
         | Bahamas, the lawyers...
         | 
         | It's a little gang who all know each other very well.
         | 
         | Now I don't think they thought FTX would fall but they had the
         | setup made so that should it fall, it'd act as a fuse shielding
         | tether/Deltec.
        
         | VagueMag wrote:
         | It's a very "wow the simulation is running wild" sensation to
         | see that someone who helped create a Keystone Kops-style
         | cartoon I loved as a kid is at the center of all this stuff
         | where the regulators and investigators are seemingly totally
         | out to lunch.
        
           | graeme wrote:
           | You may enjoy "inspector Tether". The "Fiat Currency -->
           | Crypto Loans" bit was prescient, in light of knowledge that
           | Tether's largest "customer", FTX, was a total fraud. Highly
           | unlikely FTX gave Tether the $36 billion in USD that Tether
           | claimed.
           | 
           | https://twitter.com/caspiancey/status/1348781201146826753
        
         | Animats wrote:
         | Oh, joy.
         | 
         | Looking at the Internet Archive's copy of "moonstonebank.com"
         | from before the crash:
         | 
         | CEO: Ron Oliveira. There's a new CEO now.
         | 
         | Lots of crypto-related material.
         | 
         | Most useful links end at "Request Early Access" or "Contact
         | Us". It doesn't look like they really wanted customers.
         | 
         | > Could have been part of a larger plan which collapsed with
         | FTX.
         | 
         | Unclear. The bank may have been used by FTX in some way. But it
         | looks like tying it into the FTX empire in a way visible to
         | customers didn't happen.
        
           | hericium wrote:
           | > It doesn't look like they really wanted customers.
           | 
           | Elon blabbered about making Twitter a bank to avoid
           | bankrupcy.
        
             | hef19898 wrote:
             | Yeah, a person that ognored rules from both, the SEC and
             | FTC, is a perfect candidate to run a _bank_. Sounds
             | plausible so, in the sense of that being Elon 's plan.
        
         | bombcar wrote:
         | There have been a number of cases in fintech of basically
         | "buying" a banking license by buying some small bank.
        
           | graeme wrote:
           | That would appear to be the case here, with the difference
           | being that the purchaser in this case is a foreign bank known
           | for its ties to a large criminal enterprise (Tether/Bitfinex)
        
       | miked85 wrote:
       | I can't imagine any average person trusting that bank at all,
       | based just on its appearance.
        
       | siftrics wrote:
       | Which set of supposed regulators approved this purchase?
       | 
       | Find them. Investigate them.
        
         | JumpCrisscross wrote:
         | > _Which set of supposed regulators approved this purchase_
         | 
         | I would bet none. This looks like an illegal transfer of
         | control. If shown, that gives us the thread with which to
         | finally topple Tether.
        
         | codehalo wrote:
         | From the article:
         | 
         |  _"The fact that an offshore hedge fund that was basically a
         | crypto firm was buying a stake in a tiny bank for multiples of
         | its stated book value should have raised massive red flags for
         | the F.D.I.C., state regulators and the Federal Reserve," said
         | Camden Fine, a bank industry consultant who used to head the
         | Independent Community Bankers of America. "It's just
         | astonishing that all of this got approved."_
         | 
         | So much for regulators/regulations.
        
       | toddm wrote:
       | Looks like a Laudromat.
        
       | 71a54xd wrote:
       | Finally, slightly honest less-softball coverage of this outright
       | criminal...
        
       | [deleted]
        
       | lowbloodsugar wrote:
       | From the wapo article, talking about real estate in the Bahamas:
       | 
       | "Literally, the day it occurred, they called and said, 'Let me
       | know. I will pay cash,'" Hillier said. "People see opportunity."
       | 
       | Huh. It's almost like how rich people buy property is:
       | 
       | 1. Create a ponzu scheme or other financial shenanigans 2. Get
       | money from peoples. 3. Spend proles' money on ridiculous assets
       | and property 4. Declare said scheme bankrupt 5. Step in and buy
       | assets for pennies on dollar.
       | 
       | Ideally, step 4 happens during a financial crisis so that proles
       | can't get access to borrowed money, thereby reducing competition
       | for assets.
        
       | [deleted]
        
       | robryan wrote:
       | Similar case in Australia where they bought a company that
       | already had a financial services license:
       | https://www.theguardian.com/australia-news/2022/nov/23/ftx-b...
        
       | kyrra wrote:
       | https://www.wsj.com/articles/sam-bankman-fried-ftx-team-amon...
       | 
       | FTX and it's executives donated $70 million to politicians as
       | well (in the last 18 months). SBF donated $40MM to Democrats, and
       | a different executive donated $23MM to Republicans.
       | 
       | They were trying to buy all kinds of influence.
        
         | alvah wrote:
         | "and a different executive donated $23MM to Republicans"
         | 
         | The different executive donated to his girlfriend, who is a
         | Democrat but was running as a Republican. Make of that what you
         | will.
        
         | conorcleary wrote:
         | Let's hear what Ken Griffin has to say about the GOP receiving
         | FTX money.
        
           | GameOfFrowns wrote:
           | >Let's hear what Ken Griffin has to say about the GOP
           | receiving FTX money.
           | 
           | Did the GOP directly profit from those donations or did it go
           | to a specific PAC to support the campaign of a specific
           | politician who a had personal connection to FTX Digital
           | Markets co-CEO Salame? There is a report that suggests the
           | latter[0].
           | 
           | [0]https://www.theblock.co/post/160714/crypto-booster-
           | michelle-...
        
         | samtho wrote:
         | Not discounting any of the stuff that FTX has done or will come
         | to light, but this practice of supporting "both sides" is a
         | very common, by-the-book strategy for any special interest
         | group or organization looking to buy influence and is flushed
         | with money.
        
           | harry8 wrote:
           | Well depending on how you define both sides.
           | 
           | They are buying the regulation for themselves and against the
           | people and yes this is very common and the people _hate_ it.
        
           | skrebbel wrote:
           | I'm still baffled that this kind of corruption isn't frowned
           | upon more. People are buying influence. How is that supposed
           | to be OK or normal?
        
             | ncallaway wrote:
             | I think it's frowned upon by many. It's extremely
             | challenging to address since Citizens United made it legal,
             | and the courts have chipped away at efforts to make it more
             | transparent.
             | 
             | I'm absolutely unhappy with the result. We legalized
             | bribery and rank corruption. It's awful for the system.
             | 
             | What do you think it's not frowned upon?
        
               | wpietri wrote:
               | I think their point is more that it's not frowned upon by
               | people with lots of power and/or money. US policy very
               | often aligns with the interests of the rich, and being
               | able to buy the policy they want is very much in the
               | interests of the rich.
        
             | greesil wrote:
             | Unavoidable now because of the Citizens United court
             | decision. Of course it's bad, but what are you gonna do?
        
               | joe_the_user wrote:
               | Yes, Citizens United articulated a system where "money
               | for access/attention" is the dominant paradigm of
               | American democracy.
        
               | stephc_int13 wrote:
               | Make noise about it.
               | 
               | If you believe this is wrong, that is.
        
               | skrebbel wrote:
               | I don't know, it's not this prevalent everywhere so it is
               | possible.
        
               | nradov wrote:
               | Yes, it is _possible_ to amend the US Constitution to
               | carve out an explicit exception in the 1st Amendment for
               | political donations. So far Congress hasn 't made a
               | serious effort to do so.
        
               | yccs27 wrote:
               | I'm not really familiar with the US constitution, but
               | doesn't the 1st Amendment only protect speech, petition
               | and assembly? Is there some part I'm missing or did a
               | court classify campaign donations as speech?
        
               | krustyburger wrote:
               | https://en.wikipedia.org/wiki/Citizens_United_v._FEC
        
               | ncallaway wrote:
               | It wasn't this prevalent here either until recently.
               | 
               | The Supreme Court has decided that Congress isn't allowed
               | to regulate this kind of behavior. The Court has also
               | chipped away at bribery statutes, narrowing them
               | significantly.
               | 
               | Unfortunately, without a constitutional amendment, new
               | justices on the Supreme Court, or a revolution, there's
               | not a lot that can be done. I support an amendment, but
               | with the current court it's... we have a long way to go.
        
               | dgfitz wrote:
               | Or the "honest and honerable" politicians stop accepting
               | donations they know are evil.
               | 
               | Ah never mind, we all know they can't help it.
        
               | watwut wrote:
               | Money matter in campaign. Politicians accepting these
               | have massive advantage over those who don't- so they end
               | up more winning.
        
               | bloomingeek wrote:
               | In my opinion, this is the voters fault. Read up on the
               | candidates, talk to other voters, if the candidate's ad
               | is all fluff and no substance, don't vote for them. STOP
               | believing non-journalistic cable TV channels who only
               | profit from eyeballs and not the facts.
        
               | ncallaway wrote:
               | There are honest and honorable politicians that don't
               | take such money.
               | 
               | They often lose to the politicians that do take the
               | donations. Because they don't have the money necessary to
               | compete in the election.
               | 
               | So, there's a survivorship bias. _Elected_ politicians
               | are much more likely to be taking those donations. That's
               | why the system is so problematic. It drives out honest
               | and honorable politicians, and rewards corrupt ones,
               | which further reinforces the idea that all politicians
               | are corrupt. They're not, but under this system most
               | elected politicians are.
        
               | trompetenaccoun wrote:
               | Band together with other citizens and demand an end of
               | this! Also since we're at it corporations aren't persons.
               | The founders of the US were very vocal about giving power
               | to the people, the laws were never intended to grant
               | personhood to legal entities for the purpose of enabling
               | unlimited political lobbying by their wealthy owners.
        
               | erik_seaberg wrote:
               | What kind of organization should citizens be allowed to
               | create to promote a political position, if not a
               | corporation?
        
               | bobbylarrybobby wrote:
               | One with limited spending power appears to be the gist,
               | to everyone but the Supreme Court
        
               | ben_w wrote:
               | A political party, surely.
               | 
               | (Also, despite that I am not much of a fan of the UK
               | political system, I do like that it has _extremely_ low
               | limits on election spending).
        
               | greesil wrote:
               | If by citizens you mean citizens with a fuckload of
               | money.
        
               | greesil wrote:
               | Banding how exactly in a way that would have sufficient
               | impact to change this? It's not trivial to start a
               | massive political movement. I gotta pay my mortgage, etc.
        
               | tiahura wrote:
               | Maybe I'm dense, but what difference does it make whether
               | it was SBF or FTX making the donations? Why implicate
               | Citizens United?
        
         | jzmorganchase wrote:
         | Pretty wild but I worked with the other executive here Ryan
         | Salame at a different company before he worked at Alameda/FTX a
         | few year ago. He was a fairly junior so it's sort of surreal to
         | see that he became co-CEO and had enough liquid wealth to be
         | donating $20m+ for political campaigns.
        
           | vkou wrote:
           | Given how FTX was buying it's executives houses, I doubt that
           | was his liquid wealth, I think he was just dipping into the
           | FTX customer deposit piggy bank.
        
             | jzmorganchase wrote:
             | Yep that's the most likely scenario outside of secondary
             | stock sales or personal sales of large amounts of FTT.
             | 
             | What's weird about him though is he wasn't listed as one of
             | the "close insiders" who allegedly knew about the transfers
             | of customers funds from FTX -> Alameda despite being "co-
             | CEO" and there from the beginning of FTX's creation.
        
       | from wrote:
       | Interesting how almost no one commented on the actual article
       | here. I think this ownership probably has to more do with the
       | fact that mainstream banks don't want to get near crypto
       | exchanges than some kind of corrupt conspiracy. The current
       | regulatory system relies on outsourcing AML/KYC to banks but I
       | guess no one ever thought about what happens if someone is rich
       | enough to just buy a bank. Plenty of 5 employee credit unions
       | around just waiting to be acquired!
        
         | quickthrower2 wrote:
         | Well life imitates art: Axecap buys a bank in Billions!
        
         | _trampeltier wrote:
         | Buy something if you have the money. It's called free market.
         | So it's not by accident like this, it's not a bug, it's a
         | feature.
        
       | sschueller wrote:
       | My question is why the NY times is still running a summit where
       | SBF is currently still scheduled to speak.
        
         | 2OEH8eoCRo0 wrote:
         | He hasn't been convicted let alone charged with a crime (yet).
         | When he is, his actions weren't violent. He's not a
         | radicalizing figure and letting him speak doesn't hurt anyone
         | (as opposed to an Alex Jones type).
        
           | MomoXenosaga wrote:
           | Honestly I actually doubt he did anything he can be charged
           | with. The whole point of crypto is that you are investing in
           | something ABSOLUTELY NOBODY wants to take responsibility for.
           | 
           | I find it amusing that there is now a call to apply the same
           | rules for crypto exchanges. Didn't everyone hate traditional
           | finance a few months ago?
        
             | VagueMag wrote:
             | He signed up customers with documented agreements saying
             | that their funds would be segregated and not lent out, and
             | then he used the U.S. banking system's wire infrastructure
             | to have their money sent _directly_ to his hedge fund
             | Alameda Research instead of the exchange FTX.
        
               | lazide wrote:
               | Cite? If so, that's amazingly dumb.
        
               | VagueMag wrote:
               | This was one of many admissions in his text exchange with
               | Vox. You can see an example wire here https://twitter.com
               | /EventLongShort/status/159346927091841434...
        
               | treis wrote:
               | That doesn't really make a lot of sense. Customers sent
               | him dollars to buy crypto. So any dollars that came in
               | were almost immediately turned into crypto. The only way
               | for those crypto assets to be missing is if the crypto
               | was transferred.
        
               | VagueMag wrote:
               | The dollars were used to purchase a _claim_ on crypto
               | payable by the exchange FTX. But it is not at all clear
               | at this point that if someone sent money to them ( "them"
               | being some kind of quantum superposition of FTX and
               | Alameda Research) and used it to purchase Bitcoin on the
               | exchange, that FTX ever did anything other than update a
               | number in their internal customer-facing ledgers. They
               | had only $639,000 in Bitcoin on their balance sheet in
               | their bankruptcy filing. And obviously the crypto is not
               | all sitting at FTX ready to meet customer withdrawals or
               | they would never have paused them in the first place.
        
             | lazide wrote:
             | He admitted to using client funds against the stated TOS.
             | Embezzlement, Fraud, whatever - a crime did occur,
             | regardless of if it was crypto, and every country I've run
             | across has laws against that.
             | 
             | Untangling how to charge him, and where, and digging up
             | concrete enough evidence to file an indictment is going to
             | take awhile of course. The post-bankruptcy CEO seems to be
             | finding plenty.
             | 
             | As with a lot of non-violent crime, it takes awhile to
             | arrest someone because there is a lot of paperwork. When
             | the suspect has a lot of cash and lawyers, it takes longer
             | because they need to make sure there isn't an angle they
             | are missing that could get them off.
        
               | Animats wrote:
               | > As with a lot of non-violent crime, it takes awhile to
               | arrest someone because there is a lot of paperwork. When
               | the suspect has a lot of cash and lawyers, it takes
               | longer because they need to make sure there isn't an
               | angle they are missing that could get them off.
               | 
               | Yes. The investigation has to happen before the arrest.
               | With violent crime, it's usually clear what happened; the
               | question is who did it. With white-collar crime, sorting
               | out what happened is complicated. With FTX, it's really
               | complicated. Prosecutors only get one chance; if they
               | take someone to trial on early evidence and lose, they
               | usually can't come back later and try again.
               | 
               | But it doesn't all have to be figured out. Just enough
               | for a long sentence. Known overt acts, such as buying
               | US$300 million of Bahamas real estate with company funds
               | and putting the real estate in a family name, are
               | probably enough for grand theft.
        
               | treis wrote:
               | What he's admitted to are loose financial controls and by
               | the letter of the law it's not illegal to be bad at your
               | job. Obviously no one really believes his "whoopsie
               | poopsie accidentally lost a few billion" story but
               | technically he hasn't yet admitted to a crime.
        
               | lazide wrote:
               | Nope. Mishandling customer funds _yourself_ against _your
               | own stated use of said funds to customers when you
               | gathered those funds_ is one of those crimes above,
               | depending on specifics.
               | 
               | Bad financial controls is if someone else _whoopsie_
               | accidentally steals or mishandles the funds. Which at
               | least per a cite provided earlier, he admitted to doing
               | it himself.
               | 
               | To be able to claim a lack of culpability for this
               | requires a degree of plausible ignorance about what the
               | left and right hands were doing. He seems to be working
               | hard to chip away at any sort of plausibility there.
        
               | treis wrote:
               | He doesn't have to claim anything because he's presumed
               | innocent. To nail him for wire fraud you need to prove:
               | 
               | >(1) that the defendant voluntarily and intentionally
               | devised or participated in a scheme to defraud another
               | out of money;
               | 
               | >(2) that the defendant did so with the intent to defraud
               | 
               | https://www.justice.gov/archives/jm/criminal-resource-
               | manual...
               | 
               | Thus far he hasn't admitted to either and so hasn't yet
               | admitted to a crime.
        
               | lazide wrote:
               | You're making claims I never did.
               | 
               | Wire fraud != fraud, theft, or embezzlement.
               | 
               | It's a specific sub-type of fraud, and your link is
               | pointing to a specific list of elements within a certain
               | jurisdiction.
               | 
               | Even then, that vox conversation cited above combined
               | with what we already know is likely to be enough to prove
               | at least embezzlement.
               | 
               | Here is a link to some elements of the crime for that if
               | you're interested.
               | 
               | https://www.law.cornell.edu/wex/embezzlement
               | 
               | Based on what we've seen so far, _unless he somehow can
               | convince a Judge or Jury that he didn't know what was
               | happening_ , it would be very implausible someone
               | couldn't get a sizable conviction somewhere on one or
               | more of those charges. But we won't know for sure until
               | the situation has been analyzed. But he sure isn't
               | helping himself.
               | 
               | Which is why I said what I said. He could of course have
               | no defense and sit there mute for the entire trial, but I
               | can't imagine a Jury would be all that convinced by it,
               | if the prosecution provided even the most basic set of
               | evidence that seems to be lying around all over the
               | place.
        
             | beiller wrote:
             | What would happen if everyone's starbucks phone wallet
             | balance suddenly vanished because starbucks YOLO'd all the
             | funds on Dogecoin? Would that be fraud? Or would they just
             | get away with Oops moneys is gone, all your balances are
             | now zero.
        
           | piva00 wrote:
           | Statistically speaking there's assuredly at least 1 person in
           | this whole fiasco that lost most to all of their life
           | savings, stolen from them, by this guy.
           | 
           | This is an extreme form of violence, not physical but
           | definitely psychological, your whole life of work savings was
           | wiped out and taken by this guy.
           | 
           | Holding the view you hold is why white-collar crimes are
           | viewed so leniently compared to what you'd call violent
           | crimes. Just because the effects of it are more abstracted
           | away doesn't make them lesser, people might commit suicide
           | over this. They might never recover the amount of money lost
           | for the rest of their lifetime. It's a perpetual torture for
           | those who got the shortest end of the stick. How is that non-
           | violent?
        
             | 2OEH8eoCRo0 wrote:
             | It's not my view that he hasn't been charged or convicted,
             | it is an objective fact.
             | 
             | What is the definition of violence?
             | 
             | > behavior involving physical force intended to hurt,
             | damage, or kill someone or something.
        
               | MichaelCollins wrote:
               | > _What is the definition of violence?_
               | 
               | You've already conceded that words can hurt people (Alex
               | Jones), so why are you trying to backpedal that now?
        
               | JumpCrisscross wrote:
               | > _words can hurt people (Alex Jones)_
               | 
               | Equating money losses with violence dilutes the term, and
               | has a history of slipping into hurt feelings and
               | blasphemy being tantamount to violence. There are crimes
               | which may rise to the severity of violence. That doesn't
               | make them violence. Alex Jones incited violent. He,
               | himself, was never violent. SBF perpetuated a massive
               | fraud. He has not been connected with any violence.
        
               | notahacker wrote:
               | Yeah. I see SBF coming up with some sort of self-
               | exculpatory bullshit to a fairly hostile line of
               | questioning; something unlikely to hurt anyone other than
               | maybe SBF
               | 
               | I don't see him excusing himself by explaining that
               | regulators aren't real, they're just actors playing a
               | role in an evil New World Order conspiracy to take
               | people's guns away, and if he does, I don't see the NYT
               | Dealbook summit attendees being the sort of people that
               | turn up on their doorsteps as a result. And FTX is far
               | too dead for him to harm people's wallets any further by
               | persuading them to park their money in it.
        
               | zoklet-enjoyer wrote:
               | I don't believe Alex Jones ever incited violence. SBF
               | destroyed the net worth of a lot of people.
        
               | brookst wrote:
               | Are you suggesting that if _any_ words can harm people,
               | _all_ words must be considered harmful?
        
               | MichaelCollins wrote:
               | I'm saying Bankman-Fried has hurt a few orders of
               | magnitude more people than Alex Jones, and allowing him
               | to give interviews and flippantly defend himself is going
               | to cause a lot of emotional trauma.
        
               | justincredible wrote:
        
           | [deleted]
        
           | automatic6131 wrote:
           | >When he is, his actions weren't violent
           | 
           | If you steal $10 from a local shop (sorry, $1000 in
           | California now) you'll be in jail before the end of the week.
           | Steal $1,000,000,000 eight times over and you.. get to speak
           | at a NYT conference?
           | 
           | I don't know, I just want some consistency from the justice
           | system. That's not too much to ask for, or expect, really.
        
             | hotpotamus wrote:
             | > That's not too much to ask for, or expect, really.
             | 
             | Please tell me what reality you live in and how to get
             | there. Hell, just look across this site to see all the
             | advice that ethics are for those who like staying poor.
        
               | maxbond wrote:
               | It's quite simple, you take a clear eyed look at the
               | problems in the world and you say, "I don't need to
               | accept this, this can and should be fixed." You'll no
               | doubt encounter people saying silly stuff like you cited,
               | because some people operate on the basis of "the most
               | cynical take is the correct one;" you ignore these people
               | and continue to focus on the problems at hand. Similar to
               | how, if you want to start a business, there are likely
               | people in your life who will shoot down every idea that
               | you have; you stop asking those people for advice.
        
               | lazide wrote:
               | One challenge with that approach is if you're not
               | careful, someone might start identifying you as a threat
               | because of that behavior, and start attacking you using
               | the BS and lies that a great many others are susceptible
               | too (or outright violence).
               | 
               | What we're seeing now is the part of the larger cycle
               | where folks get more and more insistent that they're
               | warped world view is correct (and it wouldn't surprise me
               | if we get more violence than we got on Jan 6th later
               | because of it), since they can't acknowledge that they're
               | wrong and something bad is happening because of it, which
               | will cause more bad things to happen.
               | 
               | It is imperative more people stand up and provide
               | counter-pressure, because otherwise they will win.
        
             | KptMarchewa wrote:
             | I believe that stealing from financial systems should be
             | less harshly punished than stealing directly from people,
             | small businesses etc.
             | 
             | Whole point of financial system is risk management, while
             | corner shop owners should not deal with theft risk at all.
        
               | from wrote:
               | I mean yes it's true that JP Morgan isn't going to go
               | bankrupt if they cash some bad checks but at the end of
               | the day that's money that could go to opening new
               | branches, hiring employees, paying bonuses or depositors
               | more interest. The cost to society is the same it's just
               | distributed over a larger number of people.
        
               | MichaelCollins wrote:
               | I bet more than one corner shop worker had money in FTX.
        
               | KptMarchewa wrote:
               | Sure. If you put your money slightly outside regulated
               | banks, you implicitly accept the risk of losing it.
        
           | chrisco255 wrote:
           | He stole billions of dollars in client funds.
           | 
           | That's far more damaging than a delusional rant on some
           | obscure internet radio station.
        
           | mvdwoord wrote:
           | Not violent directly perhaps. I agree that letting him speak
           | now won't hurt anyone, physically for sure.. but theft and
           | destruction of wealth is not without consequences, in real
           | life.
           | 
           | If, through my actions, you become financially ruined, I may
           | not have kicked, beaten, or raped you, but is the harm
           | comparable? Is it violence?
        
           | mahart wrote:
           | It is an alleged massive fraud going on a public relations
           | tour pre-trial, which not every defendant gets. I guess we'll
           | see if NYT allows him to sail through it sympathetically.
        
           | zoklet-enjoyer wrote:
           | He has admitted to the crimes. There's no doubt that he
           | committed a massive fraud. They gambled with customer funds
           | and lost billions of dollars.
           | 
           | Alex Jones isn't dangerous. He's just a weird guy who likes
           | to rant about stuff. Sam Bankman Fried is a thief.
        
           | latchkey wrote:
           | I personally view financial theft as a form of violence.
        
             | 2OEH8eoCRo0 wrote:
             | Good for you? The law and society at large doesn't.
             | 
             | Violence - behavior involving physical force intended to
             | hurt, damage, or kill someone or something.
        
               | maxbond wrote:
               | I think most understand violence to include things like
               | intimidation, emotional abuse, and imprisonment. The
               | expression "physical violence" is a reflection of this
               | broader understanding - there wouldn't need to be
               | clarification, otherwise.
               | 
               | I think of violence as the use of force or implied force
               | to limit the agency of another. I'm not sure I'd call
               | this violence but I can see where they're coming from.
               | 
               | Maybe ask for clarification instead of being rude and
               | dismissive, or simply leave your sneering judgement
               | unsaid. You may be find this view uninteresting, but I
               | find your snark exhausting. I could just as easily say,
               | "oh you're snarky, good for you?" Additionally GP added
               | to the conversation, and your snark detracts.
        
           | mlindner wrote:
           | > When he is, his actions weren't violent.
           | 
           | He stole tremendous amounts of people's money. I hope you're
           | as forgiving to him as you are towards to the people who
           | caused the 2008 economic collapse. At least they weren't
           | actively stealing people's money.
        
         | Overtonwindow wrote:
         | Surely they'll pull him. The NYT may act like its above the
         | people, the politics, but even this would be an overreach.
         | However, if SBF is committed to showing up, then it could be
         | the paper's moment to shine. However I don't think the Times
         | quite has the nation's confidence that it once enjoyed ..long
         | ago.
        
           | fidesomnes wrote:
        
           | Bubble_Pop_22 wrote:
           | > then it could be the paper's moment to shine
           | 
           | The NYT having SBF speak at one of their conferences would be
           | the paper's moment to shine?
        
             | Overtonwindow wrote:
             | Yes. If a tough reporter really nails him down with a tough
             | interview, it could be a shining moment for journalism. If
             | they fawn over him, as some have suggested of recent
             | coverage, then it will be a failure. The NYT should keep
             | him, dare him to show up, and then do their jobs: Hold his
             | feet to the fire.
        
               | MrRiddle wrote:
        
               | eli wrote:
               | The summits are about making money not news.
        
               | m348e912 wrote:
               | Even if it is a money-making endeavor, the NYT could
               | slightly mend its journalistic reputation with some hard-
               | hitting questions to SBF. They have been soft-handed so
               | far in their reporting on SBF and FTX and it reeks of
               | major bias and conflict of interest.
               | 
               | In case anyone doesn't know what I am referring to, here
               | is some background.
               | 
               | https://www.publish0x.com/making-cents/whats-wrong-with-
               | the-...
        
           | chrchang523 wrote:
           | Note that they aren't pulling him:
           | https://twitter.com/andrewrsorkin/status/1595517635441090565
        
         | siculars wrote:
         | As a lure, so they can arrest him in the US? Clicks? Otherwise
         | not sure why.
        
           | VagueMag wrote:
           | They've said they expect him to attend virtually from the
           | Bahamas.
        
           | KptMarchewa wrote:
           | I don't think he's that stupid.
        
             | polygamous_bat wrote:
             | Then again, I've been telling myself the exact same thing
             | since the start of this saga and I have been proven wrong
             | every single time.
        
               | KptMarchewa wrote:
               | Yes, but no - putting aside the whole organizational,
               | accounting etc failure, he just doubled the stakes each
               | time he could.
        
           | loeg wrote:
           | I believe the US has an extradition treaty with the Bahamas.
        
         | fredgrott wrote:
         | tongue-in-cheek how else does DOJ get him to a location to
         | arrest him in the easiest way possible?
        
         | [deleted]
        
         | fisherjeff wrote:
         | I obviously can't speak for everyone, but personally, I am
         | _much_ more interested in what he has to say now than I was
         | pre-collapse.
        
           | returnInfinity wrote:
           | Yes, same. Sorkin says he won't hold back.
        
             | MichaelCollins wrote:
             | This is a huge red flag. Bankman-Fried is acting like the
             | fix is already in.
             | 
             | I won't believe this guy is actually going to prison until
             | they slam the iron bars closed behind him.
        
               | galangalalgol wrote:
               | I doubt any organized crime was using FTX. And if they
               | were, he seems mart enough to pay them back first. But if
               | there was some smallish organization of contraband
               | dealers using FTX and he didn't know? White collar prison
               | isn't his worst case outcome.
               | 
               | As said earlier he has bribed the right big fish. But
               | ignoring angry medium fish can be a problem. Also those
               | might not be bribes. It might be a way to launder money
               | into campaign contributions. Not that you really need
               | that in the US now.
        
               | HWR_14 wrote:
               | If you're trusting what SBF is implying about a fix being
               | in, well I have some FTT to sell you.
               | 
               | The guy is going to jail. If you want to make a bet on
               | it, I'm willing to do so.
        
           | kerng wrote:
           | Yeah, interviewing is fine but should be police/feds, not a
           | publicity event where he can further his own agenda.
        
           | cypherpunks01 wrote:
           | All he seems to be able to say is that yes, he did YOLO with
           | customer funds, and he is really sorry and wishes he didn't
           | do that.
        
             | HWR_14 wrote:
             | Has he moved on to wishing he didn't do that? I've only
             | heard him say he wished the YOLO worked.
        
           | wslh wrote:
           | He can say that they were testing a new AI system that failed
           | while they were sleeping...
        
           | PragmaticPulp wrote:
           | Yes, but you also seem to know more about the story than the
           | average person. When SBF lies or gaslights, you can see right
           | through it.
           | 
           | Different story for the average listener, who will be
           | listening to most interactions with an open mind and
           | susceptible to whichever person tends to be more charming or
           | persuasive.
        
             | fasthands9 wrote:
             | I would withhold judgement. For all we know the interviewer
             | (who is going to be much more prepared and informed than
             | people here) is going to press him in front of thousands of
             | people why he stole people's money and lied about it. Let's
             | see.
        
               | partiallypro wrote:
               | Given it's Andrew Ross Sorkin, he probably won't.
        
             | bioemerl wrote:
             | I'm not a fan of protecting people from themselves. Let
             | them speak.
        
             | guywithahat wrote:
             | While I have little confidence in the average NYT reader I
             | think people need to be able to make up their own minds,
             | and Sam has an important and relevant perspective which we
             | should be able to take into account, even if he might frame
             | it in a way that makes him look good
        
               | dontknowwhyihn wrote:
               | He's a criminal fraudster.
        
               | raegis wrote:
               | Can you point to any one thing he said which no one else
               | has said before? Maybe an insightful comment to help
               | understand his "relevant perspective"?
               | 
               | He got a degree from MIT, did a year at Jane Street, but
               | is unable to keep basic financial records??? This doesn't
               | make sense to me, and seems like obvious fraud.
        
               | actionablefiber wrote:
               | I don't think he has any special wisdom to impart, but I
               | really like the potential payoff opportunity. Something
               | really funny could happen! Like a pie in his face or a
               | profoundly self-unaware quip that sends the crowd into
               | half shrieking laughter and half boos.
        
               | largepeepee wrote:
               | It's not like he hasn't been talking or typing.
               | 
               | His lawyers probably reckoned he was talking way too
               | much, was too much of a liability and dropped him
               | immediately.
               | 
               | The real question is he keeps receiving positive media
               | coverage? They keep trying to frame him as, just a "dumb
               | kid and his friends" that "accidentally misplaced
               | billions" - when in fact, it is pretty obvious he planned
               | most of it, by how his complex corporate structure was
               | and the constant deleting of evidence every step of the
               | way.
               | 
               | Not to mention how he gave himself over a billion of
               | personal loans and spending millions on bribes towards
               | the end for hopes of political protection when he knew he
               | was running out of rope to hide his scam.
        
               | brookst wrote:
               | Not sure where you're seeing this coordinated effort to
               | frame him positively. Im sure there are some takes like
               | that, but there is also:
               | 
               | https://www.wsj.com/articles/ftx-sam-bankman-fried-sit-
               | in-th...
               | 
               | https://www.axios.com/2022/11/16/ftx-sam-bankman-fried-
               | incom...
               | 
               | I'm seeing plenty of critical coverage. Are you really
               | not seeing that?
        
               | cstejerean wrote:
               | Headlines like "Sam Bankman-Fried's Plans to Save the
               | World Went Down in Flames" paint him in a more positive
               | light than he deserves IMO. There were no plans to save
               | the world.
        
             | actionablefiber wrote:
             | Is that true? I have to think that the average attendee of
             | the New York Times's DealBook summit is probably going to
             | be fairly high-information. I don't think the "average
             | person" will even know about this conference much less care
             | enough to watch the speeches.
        
             | HWR_14 wrote:
             | > Different story for the average listener, who will be
             | listening to most interactions with an open mind and
             | susceptible to whichever person tends to be more charming
             | or persuasive.
             | 
             | That doesn't matter. Who cares how the public sees him? All
             | that's going to matter is how a jury sees him shortly. And
             | the prosecution will be able to present evidence.
             | 
             | In the meantime, let him keep speaking on the record and
             | admitting to things. And providing a show for those of use
             | who are paying attention.
             | 
             | Besides, I'm not sure how many "average listeners" are
             | going to be tuning into the NYT event. I assume it's mostly
             | people who have been following the story.
        
             | throwaway09223 wrote:
             | This is true of basically every public figure.
             | 
             | I guess you're suggesting the NYT shouldn't let him speak,
             | to protect us from ourselves? That's a startling position.
        
               | watwut wrote:
               | They are not letting me speak. They are not letting
               | average fraudster waiting for court day to speak. Given
               | that, yes, they should be able to not let speak whoever.
               | 
               | They are selecting very few people to speak and rejecting
               | huge amounts of other people.
               | 
               | But the other real thing is how you introduce the
               | speaker. What do you say about the speaker in your
               | materials, whether you promote him as trustworthy or not.
        
             | gumby wrote:
             | It's an interview not a talk (see my other comment)
        
           | senthil_rajasek wrote:
           | A congressional commitee hearing would accomplish it.
        
           | partiallypro wrote:
           | I'm not interested at all, going by his Twitter, it will all
           | be complete nonsense. Hopefully he's intercepted by the FBI
           | and finally brought to justice.
        
         | andy9999 wrote:
         | Why would other people agree to share a stage with a guy who
         | has possibly/probably(?) committed a massive fraud?
        
           | dragonwriter wrote:
           | > Why would other people agree to share a stage with a guy
           | who has possibly/probably(?) committed a massive fraud?
           | 
           | Netanyahu or SBF?
        
           | dmix wrote:
           | There's plenty of journalistic value in interviewing him and
           | the audience will be very interested in hearing it.
           | 
           | I'm not sure what being outraged over his interview is going
           | to achieve Signalling you disagree with what he did? To
           | protect people from his hearing his dangerous words? To
           | punish him?
           | 
           | IMO hearing his rationale, seeing how he convinced people,
           | the lies he tells himself, etc should all be analyzed and
           | publicly scrutinized. It's not like he's promoting some new
           | venture or something.
        
             | partiallypro wrote:
             | Forget about the journalists, other speakers and
             | interviewees are attending...why would THEY want to be
             | associated with this?
        
               | dmix wrote:
               | Associated with what? An interview being done with a
               | public figure?
               | 
               | They aren't suddenly friends with the guy because he gave
               | a virtual interview over Zoom at the same event as them.
               | 
               | You don't need to be constantly publicly showing your
               | outrage to make it clear "x person bad". We get it. We
               | know he's bad. Even without such brave moral heroics.
        
             | bink wrote:
             | Will he be paid for the appearance? Journalism usually
             | precludes paying for an interview.
        
           | ls15 wrote:
           | Did you look at the list of speakers? I think that most of
           | them are used to being around fraudsters.
        
           | spookthesunset wrote:
           | For personal entertainment? I dunno?
           | 
           | I mean something is gonna go down, might as well be there for
           | the popcorn.
        
           | nathias wrote:
           | otherwise the stages would be empty
        
         | [deleted]
        
         | PragmaticPulp wrote:
         | The claim is that they'll use the opportunity to grill him with
         | hard questions and check his lies on the spot.
         | 
         | In reality, I have a hard time believing that after watching
         | Kanye West's recent media tour where he steamrolled his
         | interviewers and used their platforms to repeat his claims over
         | and over again. Even the podcasts where interviewers supposedly
         | pushed back the most (Lex Fridman is often given as an example)
         | barely resulted in Kanye acknowledging the pushback and didn't
         | stop him from repeating his points over and over on the
         | platform.
         | 
         | The NYTimes event is especially weird because it's not being
         | held up as a "watch us grill this liar" but rather "come hear
         | talks from this impressive lineup of accomplished people!"
        
           | candiddevmike wrote:
           | SBF is probably paying for the best personal brand repair
           | money can buy. He knows if you can achieve the cult like
           | following of Elon or Trump you can become untouchable with
           | the right bribes.
        
             | dmix wrote:
             | SBF's name is the reputational equivalent of Bernie Madoff.
             | 
             | You think people are going to help him make a comeback or
             | convince people to give him more money?
             | 
             | His only counsel now is going to be criminal lawyers. No PR
             | firm or conference interview could save this dude's
             | reputation.
        
               | marvin wrote:
               | His PR team bought the New York Times. It's ludicrous to
               | think that they're giving him this positive treatment
               | without bribes. Well, not bribe-bribes, of course, but
               | rather the kind of bribes that _very_ rich and well-
               | connected people can afford.
        
           | akira2501 wrote:
           | I have a hard time believing that Kanye West, a public
           | entertainer with decades of media experience, is a reasonable
           | bellwether for how SBF is likely to perform under similar
           | circumstances.
        
         | readthenotes1 wrote:
         | Perhaps so that he will come to the US so he can be arrested
         | here?
        
         | gumby wrote:
         | He's being interviewed by Sorkin so even if FTX hadn't crashed,
         | it would have been as interesting* and enlightening as SBF's
         | interview with Levine. It will be even better now, and I will
         | enjoy reading the transcript.
         | 
         | * TBH my only interest in the whole things is Schadenfreude,
         | like checking out a car crash in the street. The sector is so
         | tiny that even if FTX brings the whole thing down it'll be a
         | largely invisible ripple on a macro scale.
        
         | alexpetralia wrote:
         | I am surprised the NYT didn't de-platform him.
         | 
         | Actually, I am not surprised the NYT did not de-platform him.
        
           | brookst wrote:
           | Who has the NYT deplatformed? What platform do they even
           | comtrol?
        
             | dmix wrote:
             | Getting people kicked off speaking events is a common
             | 'deplatforming' tactic.
        
               | brookst wrote:
               | Great. Who has the NYT deplatformed?
        
               | dmix wrote:
               | What's your point?
               | 
               | That NYTimes takes a stand against deplatforming? At
               | their own summits? Or in their newspaper's opinion
               | pieces?
        
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