Sam arrived at an American prison to serve his sentence
Curly-haired Sam, the former “future Rockefeller” and CEO of the bankrupt FTX exchange, has been extradited to the US from The Bahamas However, for Sam, things got much worse as two of his main accomplices, Caroline Ellison and Gary Wang, began to testify to the feds. Due to the fact that sentences can be reduced for substantial assistance in the investigation, hopeless fraudsters decided to take advantage of this.
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Sam's main defense was that he allegedly “knew nothing” about the financial chaos that the company was experiencing — chaos that Sam himself had caused. It might work because the sentence for being a fool is less severe than the sentence for being a liar and a thug. Caroline's initial testimony, unfortunately, suggests that Sam was lying: he not only knew about the “holes,” but also personally instructed her to fill them with client money.
Sam also made massive investments that had nothing to do with stock exchanges or funds (particularly in real estate and political donations). And, once again, from client funds.
It should be noted that not this fall was fatal for Sam and FTX. He began to transform a massive trading platform into a typical “Ponzi scheme” as soon as the exchange was launched. The account of the merged client funds reached billions of dollars in the spring of 2022.
Sam also lied about not having control of the situation. Caroline and Gary Wang claim that he was fully aware of all processes. Furthermore, the Alameda fund served as Sam's “personal wallet,” with an unlimited line of credit from FTX. The crash was only a matter of time.
Nevertheless, despite how agonizing the current bear market is for everyone, it still serves as a “dropper” for a “patient” who is seriously infected with scam viruses: not only Bitcoin tourists, but also outright fraudsters, continue to leave the market.
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