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harlequinn77 | 3 years ago

It looks like a pretty clear cut case of embezzlement and fraud.

They're both crimes.

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HDThoreaun|3 years ago

It really looks a bit less clear cut than you’re saying. First I’m not sure he’s subject to American financial laws at all since ftx was offshore. Second he has some sort of explanation of alameda just taking a margin loan and he had no idea that the collateral was worthless. Would that fly in the us? Probably not. In the Bahamas? Who knows.

influxmoment|3 years ago

Let's not be silly. The criminal himself admitted he stole the money. It's not rocket science. If your banker tells you he used your savings for his holiday it's not ambiguous

The problem is both his parents are Stanford professes and lawyer. He business partner father is a MIT professor. NYT and WSJ are trying to coving up the stolen money. This is what makes it complicated and why he might not be charged

JohnFen|3 years ago

>I’m not sure he’s subject to American financial laws at all since ftx was offshore.

He almost certainly is. Under US law, it doesn't actually matter where you're based. If you are engaging in substantial activity in the US, and have a presence in the US, then you are within the jurisdiction of the US, at least for that portion.

BLKNSLVR|3 years ago

FTX.us was also dragged down by the last ditch flick of the Balrog's flaming whip

hnfong|3 years ago

The GP does have a point though.

According to some, supposedly cryptocurrencies was the solution to get around financial and banking regulations, and the only truth was written on the blockchain ledger. "Smart" contracts will make traditional contracts based on the legal system obsolete. At least for those cases, it can be argued that those people waived their rights to recovering economic loss via the legal system by using cryptocurrencies.

That said, I don't buy it. But maybe a desperate lawyer could try to argue that...

whyoh|3 years ago

>The GP does have a point though.

No. What happened at the company FTX has nothing to do with blockchain and smart contracts. It could have been an online exchange for euros or dollars or Pokemon cards. Violating the ToS and stealing users' funds is a crime.