Sam Bankman-Fried SUED, Charged, & Arrested as Binance Melts | FTX Fraud.

praise the Lord Sam bankman freed is not

only now arrested 6 p.m last night in

the Bahamas but also the commodity

future trading commission just filed a

lawsuit against him the SEC is filing

charges the Department of Justice is

finally charges holy smokes in this

video we're going to talk about what's

going on with Sam bankman freed some of

the charges against him we're also going

to talk about massive outflows from

binance including the halting of a very

popular stable coin you know my opinion

on stable coins has been staying away

from these coins folks let's get into

talking about this so first sandbagment

freed was arrested last night Monday in

the Bahamas uh charges include wire

fraud wire fraud conspiracy Securities

fraud Securities fraud conspiracy money

laundering uh he's so far the only

person that has been charged he's

scheduled to appear in court today the

arrest was completed at the request of

the United States government which

implies that at some point he'll be

extradited to the United States and

we'll probably see some sort of uh

delayed prosecution generally in

situations like this even though an

individual has the right to a speedy

trial their lawyers usually encourage

them to uh delay the trial and waive

their right to a speedy trial so they

can prepare their defenses while at the

same time the other side to prepare

their prosecution which I will say

they've already had a month to prepare

their prosecution this FTX stuff has

been going on for way too long and that

probably said in 20 different videos and

on interviews I can't wait for this guy

to end up in jail now many people though

like a person like uh we won't mention

uh Bill Ackman says hey I kind of trust

the kid and I remember replying to this

on Twitter and saying this is ridiculous

that guy bare minimum is criminally

negligent now here's something to know

when you're running an organization and

you're managing people's money you might

not intentionally be committing fraud

but when I said it on the interview and

with Yahoo finances if you put a shotgun

on a table that's a loaded gun and it's

on a dining table and kids are around

and it's pointing at one of the kids and

you just happen to walk away and

somebody else you know like a little

child accidentally pulls the trigger

you're still being criminally negligent

for having created that situation and I

believe that's exactly what happened in

this situation sandbagmatfried was a

complete idiot with the processes he set

up at FTX while fooling everyone on Wall

Street that he had one of the safest

platforms around anyway uh what we have

now is also a potential rumor that a

whistleblower helped lead to some of the

charges coming out against sandbagment

Freed's providing potentially evidence

we don't actually know that with

certainty yet but that is a belief at

this point we are expecting Regulators

to look into potential Market

manipulation claims especially around

Luna and the ftt token I find that

actually quite interesting because this

is now regulated is coming in and

setting a precedent that listen if you

manipulate markets

we don't care if you're in a regulated

market or not we will come for you

that's actually a big shift for the

crypto industry again the cftc is also

now suing sandbagment free they're also

suing his quad trading firm Alameda

research which of course Carolyn she's

she runs that one boy I can't wait to

see her arrested either honestly uh

Maxine Waters was expecting at the house

Financial Services committee to

interview Sam bankman freed by Zoom

today

she released a statement saying the

following I'm surprised to hear that SBF

was arrested in the Bahamas at the

direction of the U.S attorney for the

southern district of New York it's about

time the process to bring Mr Sam bacon

free to justice has begun however as the

public knows my staff and I have been

working diligently to secure sbf's

testimony before Congress tomorrow

morning this is Joe she's been pushing

for that working on it and so far Sam

begman freed had agreed to testify today

some folks are saying that they didn't

want they arrested Sam begman freed on

purpose right before this because they

didn't want him having more of an

opportunity to to potentially poison

juries uh to to go on this sort of PR

pitch of hey I'm just a dude who made a

mistake right they wanted to shut him up

and honestly what's crazy is I was

standing at the New York Stock Exchange

with fintech TV yesterday and I was

talking to Vince and and I looked at

Vince I go Vince I a can't believe this

guy's not in jail yet and B he needs to

shut the f up and Vince looks at me he's

like it's ridiculous that they're

letting this guy talk so much he's so

dumb that he's talking so much uh and uh

and and now that's uh that's finally

done anyway although sandbankment freed

must be held accountable the public

deserves to hear directly from Mr

bankman freed says uh uh says Maxine

Waters here uh as his actions have heard

over a million people honestly I think

we've heard enough from him and I think

he's incriminated himself enough in

plenty of podcast interviews where he's

backed himself into uh

essentially describing his fraud which

is uh which which it's pretty nice to

finally see these charges coming out

here's the SEC the SEC today charged Sam

begman freed with orchestrating a scheme

to defraud Equity investors those are

people who invested in uh FTX but then

also uh uh you know the the individuals

who use the platform as well the crypto

trading platform of which he was the CEO

and co-founder investing you know those

titles mean something Co means something

means you're the chief executive like

the buck stops with you Shady stuff

happens under you you can't just pretend

oh I didn't know the buck stops with you

it's your job to know

in this investigations as to other

security law violations and other

entities and persons relating to

misconduct are ongoing that's a tease

right there to potentially further uh

arrests and charges coming we're going

to talk about uh binance by the way in

just a moment but according to the sec's

complaint since at least May of 2019 FTX

raised more than 1.8 billion from Equity

investors including about approximately

1.1 from 90 based U.S investors wow 90.

that's uh yeah that's 10 10 millish on

average each there a little bit more

and this representations to investors

SBF promoted FTX as a safe responsible

crypto asset trading platform

specifically touting ftx's sophisticated

automated risk measures yeah to which

apparently we found out that Alameda is

exempt from the margin requirements and

rules and the measures in other words

there are back doors that Exempted his

own trading firm from the margin

requirements and the liquidation

requirements that he touted it's so

disgusting this is so so disgusting I

mean this is this is so blatant uh I I

can't wait to see this person uh 20

years in prison or more the complaint

alleges that in reality SBF orchestrated

a years-long fraud to conceal FTX

investors the undisclosed diversion of

FTX customer funds to Alameda research

has privately held crypto hedge fund and

the undisclosed special treatment

afforded to Alameda like I just

mentioned including providing Alameda

with a virtually unlimited line of

credit funded by the platform's

customers and exempting Alameda from

risk mitigation measures margin calls

and the undisclosed risk stemming from

ftx's exposure to Alameda significant

Holdings of overvalued illiquid assets

such as FTX Affiliated tokens like ftt

complaint for further alleges that SPF

used commingled FTX customer funds at

Alameda to make undisclosed Venture

Investments lavish real estate purchases

in the Bahamas for his friends his

family employees

and large political donations publicly

to Democrats and then He suggests also

equally in Hidden channels to

Republicans uh Because he believes that

gave him a more favorable impression to

the media it's so disgusting we allege

that SBF built a house of cards on a

foundation of deception while telling

investors it was one of the safest

buildings in crypto says Gary Gensler

the alleged fraud committed by SBF is a

Clarion call to crypto platforms that

they need to come into compliance with

our laws well get to it SEC compliance

protects uh I I imagine they're working

on it but boy like let's let's yes let

us get more compliance I mean maybe

there I think they might be bound by

Congress here so I don't I don't know

but it's taken a while anyway compliance

protects both those who invest yes and

those who invest in the platforms yes

with time-tested safeguards such as

properly protecting customer funds

separating conflicting lines of business

it also shines a light into trading

platform conduct for both investors

through disclosure and Regulators uh

through examination Authority yep that's

true you get that blessing from the SEC

we're going through a reggae filing for

our

house hack uh startup you can learn more

about that by going to househype.com and

read the accredited uh

purchase a private placement memorandum

there

that's a solicitation this video is not

to those platforms that don't comply

with our Securities Law so the sec's

enforcement division is ready to take

action okay and we kind of get the idea

here I really want to talk about uh

binance uh do quick little skim here

operated under a near of uh legitimacy

but as we allege that veneer wasn't just

thin it was fraudulent that's actually a

big statement there risk controls failed

very real risks uh in in a misuse of

funds unregistered securities

the sec's complaint seeks injunctions

against further security law violations

an injunction that prohibits

sandbankment freed from participating in

issuance purchase offer or sales

Securities except his own personal

account disgorgement from all ill-gotten

gains a civil penalty and an officer and

director bar which means you can no

longer be like a CEO or CFO or whatever

it's pretty big

now uh let's talk binance for a moment

because that's uh that's pretty big as

well uh so we've got uh we've got some

binance news and a lot of it is writing

after this arrest here of Sam bankman

free because uh you know I've made some

videos talking about how CZ is is you

should be skeptical of of some of cz's

decisions including hiding in Dubai how

much staff do they really have why do

they when they go to show their offices

to to reporters is almost nobody there

oh they're all virtual and remote

workers

and uh uh you know why why uh why does

CZ never want to come to the United

States because he's worried about being

arrested over here they're there and who

actually owns binance nobody really

knows because there's so many entities

involved uh reports by Bloomberg show

that anybody who's tried to sue binance

has has tried and failed because they

can't even figure out who to serve the

papers to because the ownership is so

Arcane for binance

oh I would if I had any dime on binance

like I've been saying for months get off

get off like get everything off exchange

and that's actually exactly what's

happening after a binance halted usdc

withdrawals citing a coin swap update

coming by the way that sounds really

really bad and Shady uh net outflows for

the past week and binance have hit

3.7 billion dollars nearly two billion

dollars in just the last 24 hours in the

last 24 hours those one day withdrawals

are coming in 18 times higher than usual

and there's a potential Department of

Justice investigation a new one it's

already investigations uh coming to

binance

CZ of course on Twitter is reiterating

the firm's Outlook saying things like

ignore the fun keep building binance

coin is down 3.45 on the week while

Bitcoin and ethereum are up five to six

percent of the week you've got Market

maker jump trading polling funds from

binance 18.4 million out in 24 hours

123.4 million out in seven days eight

times more trading volume uh on binance

than on coinbase but coinbase has

actually seen a small inflow over the

last 24 hours although still almost a

half a billion dollars of outflows in

just the last week uh people are getting

off exchange finally and it's sad that

it's taken this you know these sort of

collapses here but I don't think the

pain is over for crypto uh we we really

do need ethereum and Bitcoin to Trend up

to save binance in my opinion not that I

think they deserved saving but I do

think there are a lot of people on

binance and I don't want to see anyone

else hurt but uh

you know uh here's uh what is this a few

thumbs up people who fail to see the FTX

insolvency now calling for everyone else

to be insolvent out of PTSD uh no I I I

mean I think it's out of reasonable

safety right I think it's very

reasonable of course by Nancy uh you

know CEO is oh don't worry we're safe

but that's what we've heard every

platform say Voyager digital holos you

were going to be safe uh binance uh FTX

said you were safe everything was fine

went bankrupt soon after Voyager went

bankrupt soon after block fight don't

worry everything's fine we're processing

withdrawals everything's fine 12 hours

later we're freezing withdrawals and

we're going bankrupt people are

panicking because it's their money

[Music]

you know nobody wants to lose their

money you know this I think is so odd

that 62 billion dollar asset and net

worth item here uh just look I

understand it says debts and a here

which I think is odd because why would

it not have a number right why would it

not say zero if the debts were actually

zero but here it says asset slash net

worth

those are not the same thing assets are

assets things that have value net worth

is assets minus debts so asset slash net

worth is is not

this this seems like it was written by

somebody who has no accounting

background I I don't trust this as far

as I could throw it

CZ says Fudd helps us grow I see what

he's doing I mean he's really trying to

kind of take the momentum of anger uh in

in the crypto community and suggests but

don't worry we're the White Knight you

know Come Grow With US meanwhile he's

limited responses to people who follow

him or are mentioned by him

uh you know goes back into some of the

2017 history about how they were flooded

against in 2017 and survived uh you know

whatever uh on usdc we have seen an

increase in withdrawals however the

channel swap from uh Bax to B USD to

usdc requires us going through a bank in

New York in USD the banks are not open

for another few hours we expect the

situation will be restored in a few

hours when the banks open these

conversions are one to one no margin or

leverage involved okay so he's you know

obviously trying to address the concerns

that people have it's just still

concerning that really all of a sudden

usdc conversions are all of a suddened

out working because the withdrawal were

so bad I think there's Panic going on

here I would not be

in any platform right now crypto not

your keys not your crypto uh these are

some incredible developments though

we'll see how developments move on uh

sandbankment freed

and uh folks there you have it thank you

so much for watching make sure to

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