The FTX Conspiracy is Deeper Than you Think

Tonight the founder of collapse cryptocurrency 
exchange FTX Sam bankman freed remains in a jail   Cell in behind the Bahamas as he waits 
for extradition to the United States   And the possibility of spending decades 
behind bars but what about his parents   I'm surprised so few are asking whether either 
of them could be in legal Jeopardy welcome back   Everybody to altcoin daily we keep you updated 
on the entire cryptocurrency Market on a daily   Basis Sam bankman freed the FTX founder has been 
indicted on eight criminal charges including fraud   And conspiracy next to be indicted Caroline 
Ellison CEO of Alameda and Sam bankman Freed's   Ex-girlfriend you're gonna use very little math 
um use a lot of like uh Elementary School math   I think like every week or so uh something like 
weirder than the previous week would happen for   Me A lot of it was just about sort of uh yeah 
readjusting my expectations and uh being open   To whatever happened trying to think of a good 
example of a trade where I've lost a ton of money   Um Sam Trabuco the ex-ceo of Alameda before 
Caroline took over to be clear I'm uh so I   Work for uh Alameda uh not FTX uh yeah they're 
both founded by Sam McAfee uh but yeah completely   Different uh the the quite robust Chinese wall 
between the two uh and yeah so I have no access   To what uh the decision-making processes uh yeah 
Barbara freed and Joe bankman Sam bankman Freed's   Loving parents also seemingly involved in the 
FTX organization prosecutor is involved in the   Investigation of bankrupt cryptocurrency 
firm FTX and now looking into the parents   Of former CEO Sam bankman freed it's over their 
alleged involvement in The Disappearance of the   Equivalent to 12 billion dollars in customer 
funds seems pretty likely to me that people   Like Caroline Ellison will be indicted over the 
FTX fraud the question is will spf's parents be   Indicted I guess first of all we should get to 
know Barbara freed and Joe bankman a little bit   And you tell me do you think they will be indicted 
Freed's Father Joseph bankman works at his attacks   Law professor at Stanford though he's announced 
he won't be teaching at the University next year   The father bankman worked for FTX for almost 
a year deeply involved in the business in its   Early days he helped the company recruit 
its first lawyers last year he joined the   FTX staff in meetings on Capitol Hill he 
consulted FTX employees on Tax Matters   And also at a large focus on ftx's charitable 
operations his mom Barbara freed retired from   Teaching at Stanford was the head of a political 
advocacy Network called mind the gap which she   Helped start to support Democratic campaigns 
and causes her son was among the donors for the   Network meanwhile bankman freed and his parents 
together bought real estate in the Bahamas worth   121 million dollars now bankman freed has 
maintained in an interview of the New York   Times that his parents quote weren't involved in 
any of the relevant parts of the business such as   The balances of risk management both parents 
have remained in the Bahamas and it has been   Reported they have told their friends their 
son's legal bills will likely wipe them out  

But putting aside their son's legal bills what 
about them particularly the dad could he be   Charged with any crimes it's true sbf's parents 
working closely with the FTX organization has   Been well documented for years not just recently 
when FTX blew up but for years ever since FTX   Burst into the public eye for instance venture 
capitalist Katie Han went to Stanford with sbf's   Mom and Dad who taught her everything she 
knew she knew SPF as a baby and her parents   Facilitated them investing together your story is 
really interesting to me and we were talking about   This a little bit backstage so Katie actually 
went to the Stanford law school and studied   With Sam's mother and father and father but they 
had actually never met in person until just now   Well and for a couple decades for right yeah I 
ever met she knew Sam when he was a little kid   Or Kevin O'Leary Mr Wonderful himself disclosing 
his involvement in FTX in 2021 and revealing one   Of the initial things that attracted him to the 
FDX business was spf's parents compliance lawyers   And I have to disclose I'm a paid spokesperson to 
uh to FTX and a shareholder there too because we   Mentioned them and big advocate for Sam because 
he has two parents that are compliance lawyers   If there's ever a place I could be that I'm not 
going to get in trouble it's going to be at FTX   By the way listen to Joe bankman listen to sbf's 
Father talking about how one of the big names that   He rubbed elbows with and actually taught at 
Stanford was Peter Thiel the founder of PayPal   Here he's talking about how he helped Peter pay 
less taxes in business I've had people like Peter   Thiel I suppose probably the best known student 
I think I can reveal he once told me that uh My class was his most valuable because uh he 
was able to put a lot of his PayPal stock uh   In an IRA Joe bankman was heavily involved 
in FTX at least that's the way it seems to   Me but like let's be sure before we indict 
anybody let's ask the current FTX CEO in   Charge of the bankruptcy cleanup John J Ray 
this was just a few days ago listen to John J   Ray and the Congress members talk about how SPF 
would bring his dad to meetings and definitely   Hired his parents is there any evidence of 
his parents involvement in the operations   We're investigating that uh as well as any 
other you know players in the email Slack   You know there's a signals it's a it's billions 
of Records it's a very vibrant environment   Um so I hear that you haven't discovered 
that I mean it would seem interesting that   Uh that they didn't either give legal advice or 
business advice or parental advice Maybe well   Well certainly clearly you know I get our first 
day papers we indicated that uh that Mr bankman   Had given legal advice okay had he been an 
employee of FTX has been reported uh you   Know I don't know if he actually had an employee 
status uh we certainly received payments from uh   The family did receive payments okay that sounds 
like employment to me you got a payment for okay   Well I I raised that because on December 8 of 
2021 I met with Sam bankman freed in my office   Which I will note was just immediately before 
he came down to the hearing he was at least 15  

Minutes late and his father accompanied him uh in 
that meeting uh I asked and focused on what types   Of Regulation he was under his engagement with 
regulators and how that affected FTX um people   Aren't looking enough at sbf's parents and family 
listen to how financially literate Joe bankman is   This is him back in 2008 in front of Congress and 
the oversight committee talking about hedge fund   Regulation and what the regulations should be 
to avoid things like fraud oh the foreshadowing   I've been asked to provide an overview of hedge 
fund taxation focusing on some of the benefits   Of hedge fund managers my testimony however will 
also include uh private Equity Fund compensation   Agreements and tax benefits since they're quite 
similar managers in both these fields receive a   Management fee typically set at two percent of 
the amount under management they also receive   A profit's interest typically set at 20 percent 
of the fund's profits the profit's interest is   Sometimes called the carried interest or simply 
a carry the management fee is taxed as ordinary   Income the profit's interest is taxed as capital 
gain if and to the extent the fund itself is   Recognizing capital gain if it's long-term capital 
gain that's at a tax rate of 15 percent as opposed   To the 35 percent maximum tax rate on ordinary 
income in addition Kerry is exempt from payroll   Tax the way to think about it is to think of 
the choice are some sons and daughters face when   They decide upon a career if they're smart and 
ambitious they might become doctors or scientists   Or lawyers these occupations and countless other 
occupations are going to produce income that's   Taxed at ordinary income rates alternatively they 
could go into the fund industry and recognize some   And in some cases most of their income at capital 
gain rates that's simply unfair it violates a   Common sense maximum that if you have two people 
earning the same amount you ought to tax them at   The same rate it's also inefficient it reduces the 
size of our economic Pie by distorting the career   Choice our sons and daughters are going to make 
it's sometimes argued that hedge fund managers   Ought to be and private Equity managers 
ought to be compared to entrepreneurs as   I mentioned my written testimony I don't think 
that comparison is apt hedge fund managers are   More similar I think to investment bankers or 
to Executives at public companies all of whom   Recognize income at ordinary income rates 
spf's mother who's a Stanford law professor   Her moral ambiguity molded Sam's responsibility 
deficit disorder watch this clip juxtaposed with   News of FTX collapse and fraud quote from 
Barbara freed the philosophy of personal   Responsibility has ruined criminal justice and 
economic policy it's time to move past blame Foreign Foreign So why is it that it seems so many people 
agree that at the very least out of sbf's   Parents at the very least Joe bankman will 
be indicted like SPF was indicted and it's   Because the indictments on SPF so many of them 
are conspiracy indictments that matters listen  

To this former Bernie Madoff attorney tell 
you why the conspiracy charges matter well   What stands out most is that many of the 
charges are conspiracies you can have a   Conspiracy with yourself you have a conspiracy 
of at least two people and what I suspect is   Going to happen is there will be what we call 
a superseding indictment where there will be   Other defendants charged who conspired with the 
main defendant here and there'll be additional   Charges but the fact that there are numerous 
conspiracies uh leads me to believe that this   Investigation is far from being open if your 
plan planning to attend Bitcoin conference   2023 let's hang out it's going to be epic use 
code altcoin daily 10 off this is the biggest   Bitcoin conference in the world use code altcoin 
daily 10 off so is spf's mother or father next in   The federal indictments on fraud and conspiracy 
we think there's a good chance and will continue   To keep you updated subscribe to the channel 
join the altcoin daily team see you tomorrow


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) $ 26,257.00 0.44%
    • ethereumEthereum (ETH) $ 1,594.35 0.33%
    • tetherTether (USDT) $ 0.999253 0.13%
    • bnbBNB (BNB) $ 211.19 0.08%
    • xrpXRP (XRP) $ 0.500858 0.16%
    • usd-coinUSDC (USDC) $ 1.00 0.1%
    • staked-etherLido Staked Ether (STETH) $ 1,594.68 0.57%
    • cardanoCardano (ADA) $ 0.244863 0.4%
    • dogecoinDogecoin (DOGE) $ 0.060308 0.59%
    • solanaSolana (SOL) $ 18.96 0.31%