Oh man, some bankman fraud has just been ordered released from jail. This comes after the SEC complaint revealed that Carolyn Ellis and his girlfriend and another top executive have potentially worked will have worked with authorities to turn Sam Bankman Freed in and reveal his lies and the corruption at the now bankrupt trading platform FTX which is pretty disgusting, especially since FTX it was one of the few brokerage platforms that actually Incorporated trading view into their platform trading view by the way. Still a great technical analysis tool, but boy you don't have to do much technical analysis on this Market to know which direction it's going and that's straight down. So what do we have here? Well, this just out minutes ago.

Uh, sandbagment Freed to be released on 250 or 250 million dollar bail I wonder where First of all, they're getting 250 million dollars from I'd really like to know that he's apparently going to go live with Mommy and Daddy in Northern California and he's going to get to wear an ankle bracelet as he's on house arrest. So I guess you'll get to see him in Video Game World which is kind of remarkable that he's getting released because this stuff's probably going to be uh, you know. uh I would guess this trial is going to take one or two years before, uh, criminal sentencing is actually completed and then he's remanded to to real prison. But uh, let's take a look at a little bit of the news release.

Sam Begman Freed will be released on 250 million? uh million dollar bail deal I Guess technically though, if your bail's 250 ml, you probably isn't it. 10 down payment. Usually you get you get like a bail bond maybe? which would mean the parents would stuff to come up with like a 25 million dollar down payment for a bond if they were to get a bond anyway. Uh, a New York Federal judge ruled Thursday It was indicted in the Southern District of: New York on eight counts including: Securities Fraud and money laundering.

The judge would require strict supervision following his release to his parents home in California His parents both Stanford Loft professors or were present in the courtroom. Bankman Freed was a flanked by two a U.S Marshals dressed in a suit and a Time and they would put up equity in their home to partially satisfy bail conditions. I See Okay, so uh, again, you're gonna have to somehow. So even if you got a bond for 25 mil, I mean they'd have to have a really expensive home for that even to do damage to that 25 million dollar bond editored yet I I Don't know I Don't know I'm sure they've also hid money away Anyway, as part of the release, Sam Begman Freed would be released into the custody of his parents homes.

Uh, Begman Freed has previously claimed that he was down to a mere one hundred thousand dollars uh, and that he sees his net worth as negative. At the same time. We have, uh, some information that, Uh, well. the SEC released the complaint against him and uh, dang it.

hold on a second. Let me pull it up over here. The SEC released the complaint against him and I want to show it to you? We'll do it on this one. Yeah, there we go.

Oh, that's much better. The complaint was highlighted by Compound 248 on Twitter So shout out to them thank you for this. Let's go ahead and take a look at some of the highlights of the actual complaint against him. Uh, right, as we go into this: I Want to just quickly remind you that, uh, we have a holidays coupon going on for the amazing programs for long-term wealth building, especially real estate investing.

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and if you have bundle requests, send me an email at Kevin Meet Kevin.com We'll get you a bundle. Uh, that's customized in case you don't see a bundle that works for you. So what do we have here? Bankman Freed and uh Wang improperly diverted customer assets to Alameda Research? We already knew this right. Alameda Research was Sam Bankman Freed's hedge fund Wayne Created and participated in the creation of software code that allowed Alameda to divert FTX customer funds.

So in other words, they knew exactly what they were doing. They designed code that automatically moved money over to Alameda so they knew they were gambling with customer money. Which is exactly what they said they were not doing just a blatant lie. it's blatant fraud.

This, by the way, just to be clear, is the SEC complaint, which is a form of a lawsuit. These are the allegations by the SEC put together with the help of Sam Begman Freed's one-time girlfriend uh Carolyn Ellison and uh. Let's go ahead and go through some of the other details I Want to show you I Suppose I could show you quickly the press release as well. This is the SEC press release on that.

The SEC also did charge Carolyn Ellison and Gary Wang the former Chief technology offer officer at FTX for their roles in the multi-year scheme to defraud Equity investors. Apparently, they had started cooperating with authorities and as a result of that, these other executives are also expected to be released on bail. Take a listen list. Federal Prosecutors endorse plans to allow Gary Wang and Carolyn Edelson to post bail after both pleaded guilty to supporting a multi-billion dollar fraud allegedly perpetrated by Sam Bankman Freed uh and uh in connection.

Basically with with their cooperation with authorities, they're expected to maybe get reduced sentence uh and uh and have struck plea deals though the details of those uh of the police for them uh, haven't come out yet and then uh, It's not clear if Sam Beckman Freed has any kind of plea deal yet, but let's go back to the SEC complaint and the allegation here. So Ellison Interim, in turn used misappropriated FTX customer funds for Alameda's trading activity and Bankman Freed used customer funds to make undisclosed Venture Investments lavish real estate purchases and large political donations. In essence, Bankman Freed and Wang placed billions of dollars into FTX customer funds in Alameda Bank Manfred then used Alameda as his personal piggy bank to buy luxury condos, support political campaigns, and make private Investments among other things. This again back to the Uh.

SEC lawsuit here: Ellison Embankment at Bankman's Direction caused Alameda to borrow billions of dollars from third party lenders backed by Ftt. Remember the hell that causes Okay, if you're borrowing money backed by Ftt and Ftt goes down, then your collateral goes down which makes you more likely to be margin called. If you're collateral and Ftt goes down, then the value of the company FTX could go down. but if the value of FTX goes down, the value of Ftt goes down and you get this death spiral between the two.

It's really bad. Uh, and and that's why a lot of people are now raising eyebrows at the BNB thinking does Finance do this? You know Binance obviously says they don't but but you know this and and there are a lot of uh, you know, uh, analytic platforms that are saying no, You know Finance is different and so we'll see what happens with Binance. I've done quite a few videos on Binance, just type meet Kevin Binance into YouTube You'll see him Let's keep going with a lawsuit here. Ellison Acting at the direction of Bankman Freed engaged in automated purchases of Ftt tokens on various Platforms in order to increase those prices and inflate the value of Alameda's collateral.

Listen to this. So basically they could print the Ftt token potentially, then, uh, like, uh, taking having a you know, using as much Ftt token as I want and then use customer funds to go buy the Ftt token to make it seem like that inflation was not happening by Pro propping up the value of the Ftt. the FTX token. Crazy.

Bankman freed. uh and uh, uh. Bankman freed and Wang with Ellison's knowledge and consent, had Exempted Alameda from risk mitigation measures. so margin calls and they basically had an unlimited line of credit funded by the platform's customers.

When prices of crypto assets plummeted in May Alameda's lenders demanded repayment on billions of dollars of loans. Look at that, they had billions of dollars of margin calls. basically. despite the fact that Alameda by this point had already taken billions of dollars of FTX customer assets, it was unable to satisfy those loans.

So they already screwed up robbing people of billions of dollars, gotten margin, called on those billions of dollars, and then still had not enough money to satisfy the margin calls. Despite the fact that they were freely using customer funds, Bankment Freed with the defendant's knowledge, directed FTX to divert billions of dollars of more customer assets to Alameda to ensure Alameda maintained its lending relationship. So then they funneled potentially the rest of the money over from FTX to Alameda. Keep in mind at one point, I kid you not Sam Bankman Freed wanted to open a stock brokerage and he would have done the same thing people who bought stocks on FTX would have probably just seen their their actual shares their actual collateral moved to Alameda It's disgusting.

I Mean this is a huge fraud. it's so bad. Gensler is now coming out saying crypto firms must do more to segregate customer funds. Really like look I respect the SEC But like yes, yes and if we had clear regulation, it would be easier for that to happen.

So, but that's not his fault, you know? I Think Congress needs to step up their game and actually get in and start regulating. do their freaking job. This Brazen multi-year scheme finally came to an end when FTX Alameda and their tangled web of Affiliated entities filed for bankruptcy on November 11, 2022. Sam Bankmanfried owned more than 90 percent of the company, with Wang owning about 10 of the company.

Bankman Freed was the CEO of Alameda from its Inception until around October 2021, at which time Ellison Carolyn Ellison and Sam Trabuco became co-ceos now. Sam is this guy who buys a bunch of restaurants and uh, he. He kind of became like a HomeTown hero because he had so much money to donate to political entities. I Wouldn't be surprised if he should be ready for uh, an SEC lawsuit coming his way as well.

you know he. He typically post pictures of him out at the beach. Yeah, you know, while while crises are happening and unfolding around in the crypto world. uh uh, just crazy.

uh okay, what else we have in and around? May Sam Bankman Free directed FTX Engineers including Wang to exempt Alameda from the Auto Liquidation feature of Ftx's spot margin trading Services Wow in May of 2020. that's interesting. This has been going on the the exempting from margin since the Covid pandemic. Alameda was the only customer Exempted from Ftx's automatic liquidation.

we are at arm's length and we don't get any different treatment from other market makers. says: Sam Bankman Freed Straight line. Uh, actually that was Ellison saying that uh Carolyn Ellison Saying that although Sandbagment Freed has claimed that as well. yeah, Sam Bankman Freed.

You're saying there are no parties that have privileged access. both of these just uh, complete fraud. uh and and and so wrong. Alameda was not required to pay interest on the liability reflected in the Fiat Ftx.com account.

In other words, even though they were borrowing customer accounts, they weren't even paying interest on it. Crazy! Alameda's portion, which accounted to more than an eight Uh, which accounted to more than eight billion dollars in FTX customer assets has been had been deposited into Alameda-controlled bank accounts and then was initially moved into different accounts at the FTX database. However, because this change caused Ftx's internal systems to automatically charge Alameda interest on more than 8 billion dollars of liability, Freed directed that Alameda's liability be moved to another account that would not be charged interest. Oh, God It's so fraudulent.

it's so bad, so bad. Uh, some more notes here from the complaint: I'm just going through mostly the highlighted segments right now. I've read a lot of this and I want to get you the uh. The most interesting pieces: A lot of allegations about Alameda manipulating the market price of Ftt and as a result further inflating the value of its collateral.

Touched on that as well. A little bit Ftt was offered and sold as an investment contractor. These are basically the claims by the SEC against them to suggest that these were potentially really Securities which then this becomes Securities Fraud, right? Defendants Bankment Freed valued the Ftt Affiliated token at its trading prices, but collateral deposited by Alameda was not worth the value assigned to it. Alameda and FTX collectively owned the majority of these tokens and only a small portion of the Ftt Affiliated tokens were in circulation.

Okay, now that's really important because remember, if you own 99 of let's say a hundred dollars, right? Let's say we have a hundred. We'll try to do a real example here. Okay, let's say I say this, uh, headset cover right here is worth a hundred dollars. but I'm going to sell you one 100th of it for a thousand dollars.

Well, now all of a sudden, technically the value of this. If you buy 1 100th of this for a thousand dollars, the value of this just skyrocketed to a hundred thousand dollars. So you created a market value for me by paying me a thousand dollars for one one hundredth of this case. Now can I go to the market and sell this for the other Ninety nine thousand dollars? Of course, not because it's not worth that, but because somebody paid me a thousand dollars.

I Can reasonably say on my balance sheet, well, it's worth the ninety Nine thousand dollar asset. That's the kind of stuff that they were doing at the balance sheets or on the balance sheets for FTX and Alameda see value their Ftt token at trading prices. but collateral deposited was not worth the value assigned to it because they owned the majority of the tokens and it could never actually be sold for that much. Listen to this.

Alameda Actually programmed automatic trading tools or Bots to conduct trades and execute transactions to purchase Ftt at specific prices. So I mean to me, those sound like limit orders so for them to call them Bots It would have to be like there has to be more. probably fraud to it, right? I'm sure there is, but it's interesting because what you're really seeing here is you're seeing the: SEC allege that Sam Bankman Freed had Bots to pump up his own token on more than one occasion Alameda and Ellison at Bankman Freed's Direction actively engaged in the trading of Ftt with the goal of supporting the price of the token on occasions Alameda adjusted the trading parameters of its trading bots in order to support the price of Ftt. This is disgusting.

fraud. Ftt was offered and sold as an investment contract. This is again going back to this being a security. Okay, we read that segment already.

We read that segment already. That was the Bots segment loans loans from Alameda totaling more than 1.3 billion dollars, including two instances in which Bankman Freed was both the borrower and his individual capacity and the lender in his individual capacity. so he's lending to himself Ellison knew or was reckless in not knowing about these loans. Bankman Freed used commingled funds from Alameda to make large political donations and purchased tens of millions of dollars of Bahamian real estate from South Wang executed the promissory notes.

Uh, different promissory notes. excuse me totally more than 224 million dollars. They were not intended for his personal use, but were instead used by Sandbankment Freed for other purposes including: Venture Investments However, Wang did withdraw two hundred thousand dollars for his own purposes. Loans were poorly documented and at times not documented at all.

Remember these folks would use disappearing messages in in uh, like slack Communications They would use disappearing messages because they knew they were a fraud. FTX Customers withdrew approximately five billion dollars from the platform in one day. At the same time, Bankman Freed sought emergency funding and eventually had to file for bankruptcy. This is the this is probably.

this could potentially go down as one of the greatest frauds of a century. Uh, it's it's crazy I Wanna how much was the Bernie Madoff Ponzi Bernie Madoff Let's find out: 64 at one point, he was worth 64.0 That was bigger than if his net worth was 64 billion. At one point, that was actually even bigger. All right, Well, it's certainly the biggest fraud of a decade.

Uh, uh. Money missing from clients accounts was about 65 billion, about 14 of which has been recovered. Jesus Christ Well folks, all I can tell you now is use coupon code holidays and join me because this morning in the course member live stream I went through a clear outline. Watch the live stream If you join today, watch live stream.

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