ButterPotatoHead t1_j2tynqs wrote on January 3, 2023 at 10:51 PM

Reply to comment by barrinmw in Sam Bankman-Fried pleads not guilty to federal fraud charges in New York amidst renewed federal probe by fadufadu

I think one of the core issues is that there were two companies, Alameda Research and FTX. SBF ran the first one for a while, then supposedly stepped down, his co-conspirators started to run it, and then he ran FTX.

Alameda had what sounds like unlimited access to FTX funds and used them to make investments, fund loans and shore up losses. This is the source of many of the serious charges.

SBF is clearly trying to distance himself from Alameda and will probably try to blame malfeasance on the co-conspirators that ran it. Meanwhile they have already pled guilty and said they did things that they knew were wrong and SBF told them to do it. So I'm guessing that will be one of the main focuses of the lawsuits, if not the only one.

barrinmw t1_j2tyxce wrote on January 3, 2023 at 10:52 PM

Except, I believe there is evidence that he knew about the fiat account used for the entire fraud.

ButterPotatoHead t1_j2u0nxd wrote on January 3, 2023 at 11:04 PM

Well, whether or not he knew about it or used it will definitely be asked.

For a fraud conviction though they would have to show intent, like he said that he did not know about it but then used it, or something like that. And it would have to affect customers or investors.