FTX Boss Sam Bankman-Fried Accused of Stealing Billions from Customers and Lying About It

The Bankman-Fried Saga: From Crypto King to the Courtroom's Closing Arguments

Federal prosecutor Nicolas Roos presented his closing arguments this week, alleging that Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, had stolen billions of dollars from customers and repeatedly lied to conceal his actions. According to Roos, Bankman-Fried's web of deception eventually crumbled, leaving behind a trail of victims.

Almost a year ago, customers of FTX started experiencing issues with withdrawing their funds. It was later revealed that FTX had gone bankrupt with $10 billion missing. Prosecutor Roos, speaking in court on November 1, 2023, highlighted this fact. The closing arguments by the federal government were made public by Matthew Russell Lee from the Inner City Press.

Roos argued that Bankman-Fried had utilized customer funds from FTX to cover personal expenses, purchase properties, and even make political donations. He described this as a "pyramid of deceit" that eventually collapsed. Roos claimed that Bankman-Fried was aware that his actions were wrong but believed he could avoid any consequences.

Addressing the jurors, Roos stated, "He thought he was smarter, and could walk his way out of it. Today, with you, that ends."

According to Roos, Bankman-Fried had established a secret system that allowed his trading firm, Alameda Research, to use FTX customer funds without any risk of liquidation. Roos labeled this as theft, stating, "[It's] fraud. It's stealing plain and simple." He further accused Bankman-Fried of repeatedly lying on the witness stand and being unable to recall crucial details about his own business. Roos said, "Over three days, he took the stand and he lied. You'd have to ignore all the evidence."

Roos also recounted instances where Bankman-Fried allegedly used FTX customer funds to repurchase FTX stock and acquire luxury properties, despite being cautioned by his subordinates. The prosecutor accused Bankman-Fried of intentionally omitting negative information from balance sheets sent to investors and lenders, describing it as fraudulent behavior. Roos added, "He took the money and played roulette with it. He was stealing."

Bankman-Fried's defense of acting in good faith was completely rejected by Roos, who cited deleted communications and the defendant's own admissions of awareness regarding the issues. Roos dismissed Bankman-Fried's explanations regarding margin lending as false excuses, highlighting that customers had to explicitly opt into margin programs. In conclusion, Roos urged the jury to "let the evidence prevail over his storytelling. He lied. He is guilty. Reach that verdict: that he is guilty."

What are your thoughts on the federal prosecutor's closing arguments against Sam Bankman-Fried? Share your opinions in the comments section below.

Frequently Asked Questions

How Much of Your IRA Should Be Made Up Of Precious Metals

The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't need to be rich to make an investment in precious metals. You can actually make money without spending a lot on gold or silver investments.

You might think about buying physical coins such a bullion bar or round. Stocks in companies that produce precious materials could be purchased. Your retirement plan provider may offer an IRA rollingover program.

No matter what your preference, precious metals will still be of benefit to you. Even though they aren't stocks, they still offer the possibility of long-term growth.

Their prices are more volatile than traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.

How to open a Precious Metal IRA

The first step is to decide if you want an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should not be completed more than 60 days after the account is opened. Once you have completed this form, it is possible to begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.

For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing IRA.

To qualify for a precious-metals IRA, you'll need to meet some requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Additionally, you must make regular contributions. These rules are applicable whether you contribute through your employer or directly from the paychecks.

You can invest in precious metals IRAs to buy gold, palladium and platinum. But, you'll only be able to purchase physical bullion. You won't have the ability to trade stocks or bonds.

To invest directly in precious metals companies, you can also use precious metals IRA. This option may be offered by some IRA providers.

An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they aren't as liquid than stocks and bonds. It's also more difficult to sell them when they are needed. Second, they don’t produce dividends like stocks or bonds. Therefore, you will lose more money than you gain over time.

What is the best precious metal to invest in?

The answer to this question depends on how much risk you are willing to take and what type of return you want. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. For example, if you need a quick profit, gold may not be for you. If you have time and patience, you should consider investing in silver instead.

If you don't care about getting rich quickly, gold is probably the way to go. If you want to invest in long-term, steady returns, silver is a better choice.


  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
  • You can only purchase gold bars at least 99.5% purity. (forbes.com)

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How To

The History of Gold as an Asset

From the beginning of history, gold was a popular currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. In addition, because of its value, it was traded internationally. There were different measures and weights for gold, as there was no standard to measure it. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.

In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). The result was a decrease in foreign currency demand, which led to an increase in their price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They decided to sell some excess gold to Europe in order to do this.

Many European countries didn't trust the U.S. dollars and started to accept gold for payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold rose significantly over the years. Even though the price of gold fluctuates, it remains one the best investments you can make.

By: Jamie Redman
Title: FTX Boss Sam Bankman-Fried Accused of Stealing Billions from Customers and Lying About It
Sourced From: news.bitcoin.com/prosecutor-ftx-boss-sam-bankman-fried-stole-billions-from-customers-lied-about-it/
Published Date: Thu, 02 Nov 2023 20:00:05 +0000

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