FTX crypto-king ordered to jail; bail revoked over harassment of witness

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Sam Bankman-Fried, who took billions from investors at now-bankrupt FTX to cover his losses at his Alameda Research hedge fund, all while transferring hundreds of millions to liberal politicians, has been ordered to jail.

A federal judge revoked FTX founder Bankman-Fried’s bail on Friday after prosecutors presented evidence that he was harassing a witness in the case.

Bankman-Fried’s political exploits were epic, in that he gave so much money to Democrats that he probably had an impact on state and national elections in 2022.

An AP reporter was in the courtroom on Friday and described the dramatic scene:

“Bankman-Fried looked down at his hands as Judge Lewis A. Kaplan explained at length why he believed the California man had repeatedly pushed the boundaries of his $250 million bail package to a point that Kaplan could no longer ensure the protection of the community, including prosecutors’ witnesses, unless the 31-year-old was behind bars.”

The judge said there was probable cause that Bankman-Fried had tried to “tamper with witnesses at least twice” since his December arrest. In one example, he showed a news reporter some writings of one of his former girlfriends, a key witness. In another instance, he sent an encrypted message to an FTX attorney.

“At the conclusion of the hearing, Bankman-Fried took off his suit jacket and tie and turned his watch and other personal belongings over to his lawyers. The clanging of handcuffs could be heard as his hands were cuffed in front of him. He was then led out of the courtroom by U.S. marshals,” AP reported.

Both Sen. Lisa Murkowski and the Alaska Democratic Party were recipients of the crypto-mogul’s largesse. Rep. Mary Peltola benefited by the pass-through aid from the Alaska Democratic Party.

Prosecutors say FTX CEO Bankman-Fried, with his ill-gotten gains, was the second-largest funder for the Democratic Party, and that he was second only to George Soros in funding liberal candidates and causes.

Current CEO of FTX, John Jay Ray III, who was brought in to clean up the mess, is the former Enron scandal cleanup expert.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented,” Ray wrote to the bankruptcy court earlier this year.

Although Bankman-Fried faces fraud charges, the Department of Justice has dismissed the charges for breaking campaign laws because the U.S. prosecutor had not properly listed those charges on an extradition request when it filed documents with the government of the Bahamas.

21 COMMENTS

  1. “…the Department of Justice has dismissed the charges for breaking campaign laws…” nothing to see here folks, move along.

    • gotta protect those political elites at all cost . other than killing people it’s the only thing the system is good for.

    • Since when does filing additional charges after extradition require that they be dismissed when they weren’t listed in the extradition petition? More malfeasance, election interference, and incompetence from the weaponized communist DOJ. garland gotta protect their benefactor…

  2. As per Investopedia …

    A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other’s best interests.

    A fiduciary may be responsible for the general well-being of another (e.g., a child’s legal guardian), but the task often involves finances—for example, managing the assets of another person or a group of people. Money managers, financial advisors, bankers, insurance agents, accountants, executors, board members, and corporate officers all have fiduciary responsibility.

    A fiduciary’s responsibilities and duties are both ethical and legal. When a party knowingly accepts a fiduciary duty on behalf of another party, they are required to act in the best interest of the principal (i.e., the client or party whose assets they are managing). This is what is known as a “prudent person standard of care,” a standard that originally stems from an 1830 court ruling.

    This formulation of the prudent-person rule required that a person acting as fiduciary was required to act first and foremost with the needs of beneficiaries in mind. Strict care must be taken to ensure that no conflict of interest arises between the fiduciary and their principal.

    In many cases, no profit is to be made from the relationship unless explicit consent is granted when the relationship begins. As an example, in the United Kingdom, fiduciaries cannot profit from their position, according to an English High Court ruling, Keech vs. Sandford (1726). If the principal provides consent, then the fiduciary can keep whatever benefit they have received; these benefits can be either monetary or defined more broadly as an “opportunity.”

    “Duty of Care” … Duty of care applies to the way the board makes decisions that affect the future of the business. The board has the duty to fully investigate all possible decisions and how they may impact the business. If the board is voting to elect a new chief executive officer (CEO), for example, the decision should not be made based solely on the board’s knowledge or opinion of one possible candidate; it is the board’s responsibility to investigate all viable applicants to ensure that the best person for the job is chosen.

    “Duty to Act in Good Faith” … Even after it reasonably investigates all the options before it, the board has the responsibility to choose the option that it believes best serves the interests of the business and its shareholders.

    “Duty of Loyalty” … Duty of loyalty means the board is required to put no other causes, interests, or affiliations above its allegiance to the company and the company’s investors. Board members must refrain from personal or professional dealings that might put their own self-interest or that of another person or business above the interest of the company. If a member of a board of directors is found to be in breach of their fiduciary duty, they can be held liable in a court of law by the company itself or its shareholders.

    “Investment Fiduciary” … While it may seem as if an investment fiduciary would be a financial professional (money manager, banker, and so on), an investment fiduciary is actually any person who has the legal responsibility for managing somebody else’s money. That means if you volunteered to sit on the investment committee of the board of your local charity or other organization, you have a fiduciary responsibility. You have been placed in a position of trust, and there may be consequences for the betrayal of that trust. Also, hiring a financial or investment expert does not relieve the committee members of all of their duties. They still have an obligation to prudently select and monitor the activities of the expert.

    Bottom Line … Is that SBF is grossly guilty of his fiduciary responsibilities and guilty of willful intent and egregious fraudulence, as well as purposefully trying to tamper with witnesses.

    As for Daddy’s Little Princess and Mary-P personal enrichment, they’re squeeky clean in the main-stream public eyes, but not necessarily from the perspective of many of us who witness the ethical and integrity transgressions. May the truth catch up to you soon!!!

    • Sounds good Jefferson, but SCOTUS called campaign donations “speech” which is free, apparently even extending to foreign nationals donating to American political races.

    • America does have the best formed government last 200 years. James
      Adams said “Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.” It can only work as intended under specific type of people. People today hadn’t grown up around God’s Word nor seeing their parents repentant and growing by His Word. The lack of God’s Word made todays generations into corrupted evil-bent narcissistic generations. And after voters including me voted for that 500 dollar campaign limit thingy I think that avenue to disallow outsiders ability to financially contribute to Alaskan candidates wouldn’t be a good idea.

  3. This shows you that a 5.2 million dollar contribution to Biden will only keep you out of jail for so long.

  4. He knows too much. He’ll be Clintoncided in jail, while the cameras are broken and the guards asleep.

    • Always seeking any corrupting precedent to get Americans further adrift from the original 1776 Constitutional expectations. America, who once welcomed the Kingdom of God, must now be made to pay for that by the envious Satan the devil godfather of God deniers.

  5. By dropping the campaign finance charges against Friedman the Dept of Justice has shown Americans just how politicized & corrupt they have become under the watch of Short Stairs Biden & lying Attorney General Garland.

  6. This guy needs to rot in jail ! Huge money laundering frontman for the govt causes that were poured into the democrat machine ! So many smoking guns it looks like a civil war battle ! I thinks even the dumbest folks are starting to figure it out ! Especially if The NY Times is starting to report some of this

  7. If the recipients of the donations havent or will not return the stolen donations they should be charged with receiving stolen property. This action alone would clean up the donation scams if it were enforced. Joe Lisa Maxine Mary etc.
    The lack of regulation and the total mismanagement of the entire scam questions the entire regulatory system regarding a very large scale “Krypto”scam which sheds a very dim light on those in charge especially the bribery expert at the very top who received the most all the way down to his pony soldier DOJ who will let the engineers skate.
    A real DOJ would be scrutinizing both of his parents involvement.
    He wasnt smart enough at his age and experience level to pull this off with his orgy buddies.

  8. Another very important failure by the US Prosecutor who failed to include the charges of breaking campaign donation laws.
    Who was that derilect? A first day new hire or did they leave that task for the janitor?
    Oh maybe he simply forgot. I think He was TOLD by the recipient of the biggest donation(FJB) to leave that one out so people will soon forget where the money went.

  9. Throw away the cell keys to this little, Democrat puke. And put him in a cell with a few big, horny weight-lifter inmates. Hell soon understand what it’s like to get screwed over. His parents, who are radical left-winger’s, can’t rescue him now.

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