SBF ARRESTED!! LIFE Behind Bars?! Here’s What Could Happen!

Well folks the day finally came the day We saw SBF being led out of a courtroom In handcuffs there were many who thought His media apology tour and political Antics would have afforded Him special Treatment I was trying to do the best I Could obviously that wasn't nearly as Good as I thought it was however based On the charges that were eventually laid Against him it's pretty clear that SBF Could be looking at decades if not life In prison so today I'm going to take you Through some of those charges what it Could mean for SBF his co-conspirators And the broader crypto space more Generally this is a video you don't want To miss Firstly it's important to catch up with Where we are right now in the whole FTX Case things are moving so fast that you Can be forgiven for missing some of the Finer details Over the past month since the bankruptcy Of FTX SPF has been doing something that Any lawyer will tell any potential Defendant not to do and that is talking A lot of talking TV interviews phone Interviews tweets DMS and Twitter spaces The guy has been cranking out Incriminating evidence so fast it's been Kind of hard to keep up Now this was about to come to a head on Tuesday when he was due to testify in Front of Congress

Many were wondering whether he would Perjure himself in Congress and thereby Add to the list of eventual charges in Front of him However it was too late on Monday Evening it was reported that SPF had Been arrested in the Bahamas and this Was in response to a formal request from The United States that was likely to Then request his extradition It was based on a sealed indictment that The southern district of New York sdny Had issued now why they decided not to Wait until after the testimony isn't Quite clear the additional perjury Charges would have certainly helped a Prosecutor add more to the case However it could also have precluded Sam From being a co-operator when it came to The broader investigation I.E they hope That Sam will eventually rat on his Co-conspirators Be that as it may the actual charges Were released on Tuesday and boy are They extensive it seems like Sam has Committed nearly every Financial crime In the book and he was charged not only By the SEC and cftc in civil suits but Also by the Department of Justice doj Criminally now needless to say these are The most serious of the charges so I Think it makes sense to go through them Here now the doj issued an eight count Indictment and yes you did hear that

Correctly I'll also note that the Charges in the document are deliberately Vague so that it gives prosecutors Leeway to assemble a case and bring more Specific allegations further down the Line So count one is the conspiracy to commit Wire fraud quite simply quote the Defendant and others known and unknown Did conspire Confederate and agree Together and with each other to commit Wire fraud What this means is that SBF and others Had devised a scheme to defraud Investors from the start of the FTX Exchange back in 2019 This wasn't someone who started out good And then saw the markets force him into Criminality it's someone who from the Beginning had a plan to defraud others I Mean according to sources SBF and Co Literally had a signal group called wire Fraud moreover what's interesting here Is that the charges explicitly mention Others that means that prosecutors know There are other people who are involved In the scheme and that they are likely To also be drawn into it and this Reminds me of a pretty powerful Statement that the U.S attorney for the Sdny Damien Williams said quote come see Us before we come see you Now not legal advice but guys you should Probably do as he says and this first

Count comes with a maximum prison Sentence of 20 years The second count is for wire fraud on FTX customers the one that affects all Of us what this shows is that from the Beginning of ftx's existence it has been Defrauding its depositors that is its Customers This continued right up until it filed For bankruptcy last month as I'm sure Most of you have become aware Sam was Incredibly liberal when it came to his User's deposits not only were these not Kept in segregated accounts but they Were also used to fund alamitas trades And debts to purchase real estate and Other Investments and even embezzled by The top brass now the exact nature of This fraud is laid out separately in the SEC suit which we'll get on to in a bit Anyways this wire fraud charge also Comes with a maximum prison sentence of 20 years Now count three is another conspiracy Charge in this case conspiracy against Ftx's lenders more specifically SPF and Others conspired to defraud those crypto Companies that had lent The Firm funds Either in crypto or Fiat This was by providing false and Misleading information to said lenders Like counts one and two this comes with A maximum of 20 years in prison Count four is for committing wire fraud

On these lenders and it also comes with A maximum of 20 years in prison so That's 80 years so far and we're only Halfway through all of the charges Count five was a conspiracy to commit Commodities fraud this is where the Cftc's civil case no doubt helped the Doj Quite simply because cryptocurrencies Like Bitcoin eth and usdt have been Viewed as Commodities by the cftc any Mishandling of customer funds or Manipulation of prices with these assets Is thereby Commodities fraud This is something that we will cover When looking at the cftc Civil charges But it mostly relates to ftx's Commingling of funds or more Specifically that these Executives at FTX knew that customer funds were used To fund trades at Alameda This count comes with a maximum of five Years Count six is conspiracy to commit Securities fraud this is where the doj Will have leaned on the sec's Civil Complaint for the fraud that was Committed against ftx's Equity investors All of those VCS High net worth Individuals and funds that lost hundreds Of millions of dollars when the exchange Collapsed they were lied to everything From the financial position to the Assets on the balance sheet and the use

Of funds and count six comes with a Maximum sentence of five years still Counting Now count seven is a conspiracy to Commit money laundering this was ongoing Since at least 2020 when SBF and his Co-conspirators agreed to hide the Proceeds of funds that were received From unlawful activity that alleged Illegal activity was the wire fraud of Customer funds in count two so SBF is Being hit with money laundering Conspiracy charges for trying to cover Up his initial embezzlement This count comes with a maximum sentence Of 20 years now the final count relates To campaign Finance violations and fraud We all know that Sam was trying to buy Political influence over the past two Years however something that we did not Know is that he was using customers Money our money to buy these politicians So good to know that I crowdfunded the Biden Harris campaign In all seriousness though this wasn't Only money to Democrats according to Williams Sam had funneled money to both Sides of the political divide this is Another thing that he actually admitted On his apology tour when speaking to Tiffany fong in an interview two weeks Ago he admitted that his Republican Donations were quote dark Anyways if convicted on this charge the

Maximum sentence is five years So if you've been keeping track the Maximum theoretical time that Sam could Be facing is 115 years in prison quite simply the Rest of his life and then some Behind Bars yes these are the maximums and Judges can be more lenient in some cases But given the amount of money involved As well as the number of victims I Wouldn't count on leniency if I was Sam That is of course unless he decides to Cooperate hmm So that's the charges from the doj However as I mentioned these could not Have been brought had it not been for The work of the SEC and cftc so let's Take a look at these separate complaints Shall we now I'll start with the SEC Complaint first and this is Securities Fraud because it's concerned with Misrepresentations involving FTX Equity Not cryptocurrencies take note Gary Gensler The charging document is almost 30 pages Long but I'll take you through some of The most important sections Firstly there's the question of when the Fraud started as was made clear in the Doj's charge sheet this started way back In 2019. it wasn't as the result of some Bad decisions made a few months ago this Was a long-running and premeditated Fraud that started when FTX made

Misrepresentations to their VC investors In the numerous raises that they Conducted To all these VCS Sam claimed that he was A quote responsible leader in the crypto Space who touted the importance of Regulations and accountability haha but As we now know SBF had from the start Diverted customer assets to Alameda it's Also pretty likely that the funds Invested by these VCS were also sent to The firm this information was hidden From all those VCS when doing those Multiple raises although to be fair the Folks at Sequoia probably didn't want to Interrupt his League of Legends game And it wasn't just the funds that were Being sent to Alameda it was also the Self-dealing These funds were also used To buy luxury property in the Bahamas For not only the employees of FTX and Alameda but for sbf's parents and other Business associates as we know in May of 2022 this fraud became even more Brazen As customer funds were used to prop up Alameda and meet the margin requirements Of the lenders remember the fraud Against alameda's creditors As if that weren't bad enough they then Go through the fact that ftx's top Executives embezzled these customer Funds in personal loans to themselves as You'll recall from the bankruptcy filing SBF got a one billion dollar loan from

Alameda nishad Singh got an over 500 Million dollar loan and Ryan salame over 50 million feel free to watch my video On the bankruptcy which will be in the Description for you guys Now the self-dealing doesn't stop there At point 26 it's further pointed out That billions in customer funds were Used in Venture Investments real estate Purchases and of course political Contributions remember the fraud of Campaign financing laws Further misrepresentations were made About the FTX risk engine and broader Risk management the risk engine would Make sure that the platform was fully Solvent however the only problem was That the risk engine Exempted the Biggest client on the platform Alameda So here they even refer to something Sam Said in that New York Times interview That quote I wasn't even trying like I Wasn't spending any time or effort to Manage risk on FTX I bet he's regretting That interview now and you can find out Exactly what else was said in it in the Video below The SEC filing continues with the Exemption that was given to Alameda more Specifically the exemption from Auto Liquidation Over the entire period of ftx's Fundraising efforts

2019-2022 SBF made material Misrepresentations to investors about The risk profile of the firm more Specifically that the collateral that Alameda deposited with FTX for the loans That they took out was in illiquid FTX Affiliated tokens I.E bags of ftt SRM Maps Etc Over here they explain the exact way in Which FTX diverted customer funds to Alamiga one of those was when customers Deposited funds into bank accounts that Were controlled by Alameda these weren't Properly adjusted in the books of FTX The other method by which customer funds Landed up in alameda's hands was through A quote line of credit which of course Was funded by FTX depositors the Separate bank account point is something That Sam has admitted to over a number Of interviews in the past few weeks Indeed he was trying to use this as an Excuse as to why there was this Discrepancy and blamed it on this quote Legacy issue but there was deception Here as well in that FTX instructed Users to deposit into accounts that were Not in the name of Alameda or FTX but Subsidiaries like North Dimension Etc I'm surprised bank fraud charges aren't In the sheet too Now perhaps the most shocking admission From the sec's document though is the Fact that this multi-billion dollar

Liability of Alameda was only reflected In fdx's books as an account called Quote Fiat that's right an Intentional misrepresentation in ftx's Internal systems to hide the liability If that doesn't screen premeditated and Intentional fraud then I don't know what Does Now something else that came out here is That not only was Alameda Exempted from The Auto Liquidation but they were also Allowed to run a negative balance Customer account at FTX effectively Being a debtor to the other users who of Course couldn't run negative balances This was facilitated through software That was apparently coded up at spf's Request When Alameda needed more money to fund Its risky bets or to increase its Lending then SBF would request that this Line of credit was further increased Over here meanwhile they talk further About alameda's exemption from the Liquidation feature now it's important To note that this was implemented back In May of 2020 so further proof of how Long running this fraud was meanwhile Over here the SEC covers the Dire Straits that Alameda was in during the May crypto crash if you'll recall this Was when Terror collapsed and it now Seems as if Alameda was in the same boat As many of these other crypto funds

What's actually quite surprising there Is that U.S investigators are also Looking into alameda's role in the Collapse of Terror if this is indeed True then it's further proof as to how Bad they were as Traders basically Causing their own insolvency Anywho the effect of the great Deleveraging earlier this year is that Alameda also got margin called and SBF Diverted FTX customer funds in order to Plug alameda's hole this only increased The total liabilities that Alameda had To FTX if you include the Fiat account In order not to disclose this liability To any potential lenders SPF directed Alameda to hide this from their balance Sheet it's crazy how Brazen this fraud Is when you think about it Over here they go over another Particularly important point that was Raised in many of the interviews SBF did Over the past month that's that whatever SBF did with those user funds was in Clear breach of ftx's terms of service Now I'm sure that you guys will remember That car crash of an interview on Good Morning America where SBF was asked About this breach of terms if you Haven't well allow me to jog your memory Here it says that the digital assets may Not be loaned to FTX Trading They can't be loaned out I

There existed a bar lending facility on FTX Yikes Now the complaint goes on to allege Further misstatements of fraud as it Related to the assets that FTX had Invested in quote FTX is fine FTX has Enough to cover all client Holdings we Don't invest in client assets even in Treasuries this was an Infamous tweet That was later deleted clear admission That he knew this was a lie and Incriminating Now the SEC goes on to mention a number Of other misstatements that were made to The public as they relate to the Security of user funds and how they're Being held He also told all those investors and Said in an interview with the Wall Street Journal that Alameda had no Preferential treatment something that we Now know to be a bare-faced lie Okay so that's a run-through of The Abridged version of the SEC complaint About as damning as they come if you ask Me I do encourage you to read through The whole thing yourself if you have Time and I'll leave a link in the Description to it for you but that is Not all folks of course we also have the Lawsuit filed by the cftc it's another 40-page document and a lot of it covers The same ground as the sec's complaint

However there were a few things that Stuck out to me here For one there were the additional Trading advantages that Alameda had over Others we already know that they had an Unlimited line of credit as well as Being exempt from the Auto Liquidation However they also had a speed Advantage Quote alameda's transaction orders were Received several milliseconds faster Than those of other API users and quote In the high frequency trading sector This is a significant time advantage This is something that other Traders had Long suspected and even questioned SPF On his response that this was because of A UI lag was laughable Moreover Alameda was also Exempted from Automated steps that were required to Confirm that funds were available before Placing trades according to the Complaint quote if other customers Placed several orders at once these Checks occurred in sequential order so That each transaction could be confirmed As viable This of course didn't apply to Alameda But the cftc mostly zoned in on the Brazen commingling of funds now for Those who don't know this is a massive No-No for any Commodities dealer or Market participant customer funds have To be in a dedicated and segregated Account that cannot be touched by the

Firm's broader operational account The facts are that Not only was FTX not Ring fencing the customer funds from Their own operations but they were also Sharing them with a completely separate Firm Alameda now this is something that Sam had actually admitted in a Twitter Space on his apology tour I sure don't Want to be his lawyer at this point So for those of you who have been Watching coffee zilla's videos he was Grilling Sam about ftx's terms of Service and how these funds were Eventually commingled with Alameda I'll Leave a link to that video in the Description as it is really quite Entertaining Sam said quote at the time we wanted to Treat customers equally and that quote That effectively meant that there was You know if you want to put it this way Like fungibility created Now this fungibility between margin Traders and ftx's regular users is not Only in contradiction to what he talked About before with coffee Zilla in the Same interview but also in direct Contravention of the terms of service The clearest admission yet from scam I Mean Sam that he was committing fraud And a tip of the hat to Coffee Zillow For extracting that admission well done Sir who knows maybe this admission will Be referenced in court and further

Charging documents that is unless Sam Decides to sing Okay that's it for the documents and the Charges but here are some of my own Thoughts on the matter I'm relieved to know that SBF is finally Facing the music this is something that Many of us in the crypto space were Worrying wouldn't happen given his Political connections and of course that Blitz apology tour however if there's One thing that these charges show us It's that he is being treated as the Monumental fraud and criminal that he is He's now Behind Bars facing an Extradition battle a far cry from the Multi-million dollar Penthouse he was in Just last week If he is to be convicted of all the doj Charges that have been brought against Him he is looking at some serious jail Time if he gets the maximum on all Counts then that is a life sentence and Then some now of course the doj is Looking to charge others as well indeed Many of the charges are conspiracy which Means that there are co-conspirators Now this is something Bernie madoff's Former attorney mentioned in an Interview on CNBC that they are looking To bring others in if that is the case And Sam does Spill the Beans then he Could get a more lenient sentence However given how angry everyone is as

Well as the scale and size of the fraud He would still be looking at doing some Serious time of course none of this will Really help those who lost most of their Money in the collapse but it could at Least prove an important turning point For the industry perhaps this episode Will lead to Stronger industry standards And Common Sense exchange regulation But whatever happens let's not forget That this was as a result of plain Vanilla commercial crimes embezzlement And fraud it had nothing to do with the Underlying assets whether it was made Off with stocks or bankman freed with Crypto bad guys will do bad things My Hope Is that the regulators and Politicians can appreciate that fact so Let's work to stop the fraudsters not The technology Now I would love to know what you guys Think how many years do you think Sam Will get who do you think is next to get Arrested and who would you rather Sam Share to sell with Hannibal Lecter or Perhaps some gentleman from MS-13 let me Know in the comments below now in the Description you can also find links to All the other places that you can follow Me such as Twitter telegram Instagram And tick tock If you want a preview of what videos are About to be released as well as a Breakdown of my personal portfolio then

You should also sign up to my free Newsletter all of that goodness is down Below Oh and if you would like to support the Channel then you should also check out My merch store that's where you can pick Up this magical little number and so Much more Finally if you think this crypto guide Did a fine job then smash up that like Button and don't forget to hit that Subscribe Button as well oh and don't Forget the Bell so YouTube can give you A bell as well till next time my friends Stay cool stay safe and stay Christmas Foreign


Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

Leave a Comment

    • bitcoinBitcoin (BTC) $ 37,184.00 0.19%
    • ethereumEthereum (ETH) $ 2,025.14 0.12%
    • tetherTether (USDT) $ 0.999773 0.05%
    • bnbBNB (BNB) $ 228.73 1.31%
    • xrpXRP (XRP) $ 0.605930 0.4%
    • usd-coinUSDC (USDC) $ 1.00 0.06%
    • solanaSolana (SOL) $ 55.92 1.36%
    • staked-etherLido Staked Ether (STETH) $ 2,023.28 0.05%
    • cardanoCardano (ADA) $ 0.376802 1.04%
    • dogecoinDogecoin (DOGE) $ 0.077890 1.7%