WOW
Crypto CEO Accidentally Describes Ponzi Scheme--UPDATE--Bankman-Fried arrested in the Bahamas on money laundering and fraud charges.
- Thread starter ogc163
- Start date
WOW
I'm buying the dip lol
it seems like he's making the case that the U.S can't prosecute him because he didn't defraud customers.
FTX US was fully solvent.
FTX international didn't defraud any U.S customers so the U.S doesn't have jurisdiction.
The_Unchosen_One
Superstar
Now SBF's dad has lawyered up
Crypto firms Genesis and Gemini charged by SEC with selling unregistered securities
The SEC alleged on Thursday that crypto firm Gemini, founded by the Winklevoss twins, and Barry Silbert's Genesis offered and sold unregistered securities.
KEY POINTS
- The Securities and Exchange Commission alleged in a complaint that crypto firms Gemini and Genesis offered and sold unregistered securities.
- It’s the latest in a series of recent enforcement actions initiated by SEC chair Gary Gensler since the collapse of FTX in November.
- Gemini, founded by the Winklevoss twins, and Genesis, owned by Barry Silbert’s Digital Currency Group, have been in a battle over the fate of $900 million worth of customer funds.
“Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws,” SEC chair Gary Gensler said in a statement.
Gemini’s Earn program, supported by Genesis’ lending activities, met the SEC’s definition by including both an investment contract and a note, SEC officials said. Those two features are part of how the SEC assesses whether an offering is a security.
The SEC says the Earn program netted the companies billions of dollars in crypto assets. The agency is seeking permanent injunctive relief, disgorgement, and civil penalties against both Genesis and Gemini, and noted that “investigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.”
The two firms have been engaged in a high-profile battle over $900 million in customer assets that Gemini entrusted to Genesis as part of the Earn program, which was shuttered this week. Genesis suspended withdrawals after the failure of FTX in November caused a rush for the exits across the crypto universe, and the firm has yet to allow Earn customers to pull their funds.
“The U.S. retail investors who participated in the Gemini Earn program have suffered significant harm,” the SEC complaint read. More than 340,000 investors have been affected by the freeze.
In the first three months of 2022, Gemini made around $2.7 million in agent fees off Earn, the SEC complaint alleges. Genesis would use Gemini users’ assets for institutional lending or as “collateral for Genesis’ own borrowing,” the agency said.
Over the same period, Genesis paid out $166.2 million in interest to clients, including Gemini, on $169 million of interest income, the SEC said.
Tyler Winklevoss and Cameron Winklevoss (L-R), creators of crypto exchange Gemini Trust Co. on stage at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Genesis’ institutional borrowers included Three Arrows Capital and Sam Bankman-Fried’s Alameda Research, both now bankrupt.
Representatives from Gemini and Genesis parent Digital Currency Group declined to comment.
Gemini, which was founded in 2015 by bitcoin advocates Cameron and Tyler Winklevoss, has an extensive exchange business that, while beleaguered, could possibly weather an enforcement action.
In a tweet, Tyler Winklevoss said Gemini is “working hard to recover funds” and called the SEC’s action “totally counterproductive.”
But Genesis’ future is more uncertain, because the business is heavily focused on lending out customer crypto and has already engaged restructuring advisers. The crypto lender is part of DCG, the conglomerate controlled by Barry Silbert.
SEC officials said the possibility of a DCG or Genesis bankruptcy had no bearing on deciding whether to pursue a charge.
It’s the latest in a series of recent crypto enforcement actions led by Gensler after the collapse of FTX, Bankman-Fried’s crypto exchange, late last year. Gensler was roundly criticized on social media and by lawmakers for the SEC’s failure to impose safeguards on the nascent crypto industry.
Gensler’s SEC and the Commodity Futures Trading Commission, chaired by Rostin Benham, are the two regulators that oversee crypto activity in the U.S. Both agencies filed complaints against Bankman-Fried, but the SEC has, of late, ramped up the pace and the scope of enforcement actions.
The SEC brought a similar action against now bankrupt crypto lender BlockFi and settled last year. Earlier this month, Coinbase settled with New York state regulators over historically inadequate know-your-customer protocols.
Since Bankman-Fried was indicted on federal fraud charges in December, the SEC has filed five crypto-related enforcement actions.
Digital Omen
All Star
All these crypto fukkers are dikk riding fakkits who love the attention
Indictments, investigations, allegations: Let me jump on twitter like a little hoe and try to explain everything!
It's like kids when they get caught: no he did it first! I didn't do anything! waaahhh!!
FOH, STFU and let your lawyer give a statement. How hard is that?
I think what pisses me off is they tweet and podcast their crimes and still nothing happens
I wasted $500 on ether and litecoin, can't even imagine people that invested their life savings, pension funds, etc
I knew SBF would get off with a slap on the wrist, out on bail and now up in some Manhattan condo blogging away
Dudes doing football numbers for weed and this a$$hole...never mind
Indictments, investigations, allegations: Let me jump on twitter like a little hoe and try to explain everything!
It's like kids when they get caught: no he did it first! I didn't do anything! waaahhh!!
FOH, STFU and let your lawyer give a statement. How hard is that?
I think what pisses me off is they tweet and podcast their crimes and still nothing happens
I wasted $500 on ether and litecoin, can't even imagine people that invested their life savings, pension funds, etc
I knew SBF would get off with a slap on the wrist, out on bail and now up in some Manhattan condo blogging away
Dudes doing football numbers for weed and this a$$hole...never mind
ADevilYouKhow
Rhyme Reason
FTX Executives Expressed Concern Over Use of Customer Funds, Documents Show
Documents obtained by The New York Times provide new details about the discussions among FTX’s top leaders before the cryptocurrency exchange collapsed in November.
ogc163
Superstar
This joker is bugged out
ADevilYouKhow
Rhyme Reason
FTX admits to $415 million hack and ‘substantial shortfall’ of customer funds
FTX has disclosed for the first time a shortfall of customer funds on the FTX and FTX U.S. platforms, in a meeting with debtors on Tuesday.
www.marketwatch.com
Duckberg
Hood Critic
The Power Circle
See what had happened was...FTX admits to $415 million hack and ‘substantial shortfall’ of customer funds
FTX has disclosed for the first time a shortfall of customer funds on the FTX and FTX U.S. platforms, in a meeting with debtors on Tuesday.
Duckberg
Hood Critic
The Power Circle
The joke is becoming a reality - the same dollars are being leveraged to keep all of cyrpto afloat.
ADevilYouKhow
Rhyme Reason
The Unknown Hedge Fund That Got $400 Million From Sam Bankman-Fried
After the collapse of FTX, prosecutors and lawyers have scrutinized its discredited founder’s huge investment in Modulo Capital.
