Corrupt FTX Crypto Bro Takes Another Massive L

By | December 23, 2022

Ex-Alameda CEO Caroline Ellison and FTX cofounder Gary Wang plead guilty to fraud charges and are cooperating with authorities. Cenk Uygur and Rayyvana discuss on The Young Turks. Watch TYT LIVE on weekdays 6-8 pm ET.

Read more HERE:

“Caroline Ellison, the former CEO of Alameda Research, pleaded guilty to charges that carry up to 110 years in prison after striking a plea deal with the Justice Department.

It’s not likely that she will serve anywhere near the statutory maximum for the charges she pleaded guilty to because of the plea agreement she struck with prosecutors in the Southern District of New York, dated December 18.

Ellison faces seven charges that collectively carry a maximum prison sentence of 110 years. These include conspiracy to commit wire fraud, securities fraud, and commodities fraud. She also faces a charge of conspiracy to commit money laundering.”

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Disgraced FTX CEO Sam bakeman freed Known as SBF who has just been Extradited to the United States from the Bahamas has taken yet another massive L They just keep coming and honestly I Really think that he deserves them so His business partner and also his on and Off again girlfriend Caroline Ellison Just pled guilty to seven charges and Struck a plea deal with the United States justice department so Ellison was A co-founder of FTX and the CEO of Albedo research which is the trading Firm that SBF launched so Alameda Research was a key part of Sam begman Freed's scheme so billions of dollars of Customer funds were secretly moved from FTX to Alameda research starting as soon As FTX was founded so this was a Long-haul scam the scam from the very Beginning but SPF insists that you know This was due to confusing internal labor Sibling but in reality SBF was using Some of that money for himself from an SEC complaint released last night Bankman freed used Alameda as his Personal piggy bank to buy Luxury Condominiums support political campaigns And make private Investments among other Uses Ellison used these funds for Alameda's operations including Speculative trading strategies and Servicing alameda's debt to third-party Lenders FTX and Alameda were built from

The ground up on fraud NBC News reported That the collateral Alameda held for its Loans was mostly ftt a crypto token FTX Made and gave to Alameda which the hedge Fund then tried to prop up from the SEC Complaint on more than one occasion Alabida and Ellison at bankman Freed's Direction actively engaged in the Trading of ftt with the goal of Supporting the price of the token so as Part of Ellison's plea deal she waived Any defenses to the seven charges Against her so some of those charges are Conspiracy to commit wire fraud Securities fraud Commodities fraud and Conspiracy to commit money laundering so Ellison is facing up to 110 years in Prison for those charges and will be Forced to pay restitution inside a Reported that part of this deal Ellison Must cooperate fully with the Prosecutors the FBI and any other law Enforcement agencies she must also Provide documents records and evidence To prosecutors as well as testify to a Grand jury trial or at court trials when She is requested so there's also another Player in this and his name is Gary Wang He was another co-founder of FTX and he Also pled guilty to fraud and will be Cooperating with prosecutors Wang helped Create the special software which Diverted the funds from FTX to Alameda So I've never I've I've never gotten on

The crypto bandwagon I don't necessarily Believe in the mission of D5 I don't Necessarily think that crypto is the Solution to the problems with our Traditional institutional banking uh Organizations And one of the reasons I believe that is Because Crypto seems particularly you know It's particularly useful to people who Want to defraud people every every time I see crypto in the news it's this fraud Or that fraud and then people you know Urging crypto investors urging people That no no no it's it's not more Fraudulent it's somehow deeply less Fraudulent but then you see things like FTX Jank what are your thoughts All right let's talk about all the Surprising parts of the story uh first Of all Caroline Ellison turns out to be 28 and not 12. Um so she's the youngest looking 28 year Old I've ever seen and I think that uh Sam bankman freed is questionable for Dating her just based on on that fact Alone okay now I get it she's actually Turns out to be 28 but I don't believe It okay and uh and number two can we Bring the whole country together in this Holiday season on agreeing the Sandbankment free needs a haircut [Music] Okay so let's I think I think we can

Finally get bipartisan agreement here Number two can everybody stop with the Three names Like uh Marjorie Taylor green and the Sam bankman free I got it AOC became Popular I got it right slash I'm from Now on I'm Jake Deere Uber CKU not a big Deal CKU okay and you have to call me That I'm forcing everybody to call me That I'm gonna come you know what I'm Gonna come make up names and we're gonna Have like five names I'm Gonna Make You Guys say all of that uh anyways uh now On to the real stuff uh he's screwed So she ran Alameda she was the CEO That's where they moved the money so That they could uh invest your money for Their own profit and oops they lost it So she was in a world of trouble facing 110 years that's why she cuts this plea Deal and as part of the plea deal she Must testify truthfully and cooperate With the federal government so Sam Bankman freed will get plenty haircut in Jail soon now he's out on 250 million Dollar bail to give you a sense of how Much money they have stuffed in their Pockets uh from this scam God knows how Much of it they hid but I mean his Arrogance was stunning and I mean even Look at that comment that ravana read You guys I mean he's like or I think it Was in the story uh in another part Sorry

Where he was like oh the 10 billion Dollars uh that I that we moved from FTX To Alameda well that was just like and Then ravana mentioned that he called it Something like uh it's just a Bureaucratic mistake right Oops did I lose for 10 million dollars Dude where's my 10 billion no that's not A little mistake that's a giant giant Fraud and you're in a world of trouble Especially now that your girlfriend's Turned on you yeah things are are not Looking good for him but I will say Jake To your point about the three names I've Been fighting against that for a long Time I mean I've reduced it down to one Name just ravana no first no this one Name I'm fighting against the the Tyranny of of the three named people Um Ray I always knew that about you I Mean when I saw you I thought rayvanna On name alone power to the people I'm a true patriot that's right Um okay but so getting more into the Story you know it really seems like The entire economy is a scam it feels Like that more and more every day uh but So why is it only SPF Ellison and the Other co-founder Wang who are going to Be punished and that could be answered By looking at who it was that they Scammed so the New York Times reported Ftx's list of investors spans powerful And well-known investment firms Nea ivp

Iconic Capital third Point Ventures Tiger Global uh so on and so forth other Ones include BlackRock Um but these firms fell for the scam Um so uh New York Times also reported That four FTX investors who declined to Be identified probably because they were Embarrassed said they were shocked by The company's sudden collapse they said They had properly researched the Company's financials which showed a Healthy growing business that provided An easy to use platform for people to Buy sell and store crypto and that they Were completely in the dark about ftx's Possible self dealings with Alameda you Know but despite what they're claiming And what they're saying to sort of cover Their own asses for the massive Embarrassment that they've been caught Up in the warning signs were there and They should have been transparent and Obvious especially to these investors Um ramnik Aurora one of ftx's top Executives described a video meeting Last year between bankman freed and Partners at a top Venture firm in the Meeting bankman free delivered a Well-received presentation while Simultaneously playing a video game the Entire partner meeting he was playing League of Legend at the same time I mean I mean I can't really say much because I'm playing Among Us on my other screen

Right now while I'm presenting the story But I mean if you are an investor and You are investing in someone who's not Even focused enough during a Presentation to you that he's playing Video games You deserve to be scammed at that point In my opinion you got what was coming to You that you didn't pull out immediately And you continued to invest in him and Continue to believe in his project it's A joke I really I I think it's just a Complete joke I think the investors Really deserve some sort of you know Punishment for propping up these Businesses you know it's the same thing That we saw with wework it's the same Thing we saw with um Elizabeth Holmes They invest in a person who they think Is interesting or quirky or cool and They're willing to dump you know Billions of dollars into their projects Without really looking into what those Projects are or how they work Uh and that way the people who make Those projects are able to advertise Them because of course the investors got Scammed here but there's also normal People who use the crypto exchange FTX Who lost all of their money if you or Most of their money who will never get Any of that back And the investors helped create that They helped allow that to happen so I I

Think they should there should be some Sort of you know repercussions for them Too of course it's never going to happen Um but you know Jank what are your Thoughts yeah look uh FTX apparently was Running this scam for a long time but no One ever called him out on it until Those investors joined later in the Process and it's one thing when you rip Off the average American no one cares And they let you do that for a long long Time but when he ripped off Sequoia and SoftBank and BlackRock these are some of The biggest names on Wall Street You're not going to get away with that Be the only thing you'll ever get busted For if you're stealing in America at This kind of if you're stealing over a Million bucks the only way you're ever Going to get busted is if you steal from Rich people if you steal from pensions You steal from the average American You're free to go you're celebrated You'll become a hero right uh but if you Steal from the big Banks you're you're Not long for this world and and he Didn't get it uh rayvanna because In his world people were throwing money Billions of dollars at his feet he could Do anything he can play video games he Probably could have taken a dump on the Table and they would have been like oh Bravo genius genius and so this goes to Two giant myths in American Media

And debunking them uh number one is the Great man myth the myth of meritocracy That all the Legends are so smart and The people's and the richest people are The smartest people even if they look Like jackasses and need haircuts and Play video games during investor calls No they are geniuses because they are Rich right well what we saw with Elon Musk turn out not a genius and if you Read some of those emails or the people That were giving him billions at a time Turns out they're not Geniuses either They're just like I don't know I think Elon makes a lot of money I don't want To lose out homo fomo if you were Missing out here take all my money on a Dumbass uh purchase of Twitter that has No just about returning your profit okay And then on uh FTX and all the examples You gave ravana no these people are not Great men they did not Merit all the Money they have some might have but Overall a lot of them were already rich To begin with the right place right time And you could see it it's now it's clear To us we could all see it with our own Eyes they were all jackasses how do you Get rooked by this guy if I saw Sandbankment freed and he's like uh yeah What else man I'm just transferring the Money wherever uh but cryptos Um oh you're gonna make so much yeah I Wouldn't put my money on that cloud but

All these Great Men made that mistake And then the second myth is uh that uh That we don't need those thinking Regulations that's what they always tell You right Dera you're like oh you jump To red tape uh bureaucracy uh too much Regulations so can you have too much Regulations of course you can is this an Instance of that no there's almost no Regulations in crypto and it turns out If you don't have regulations and Another word for regulation is laws if There are no laws the criminals are Going to come pouring in and that's Exactly what happened Yeah and with FTX specifically it's Interesting because Sam bankman freed People like him you know were against Regulation until the very end when you Know Sam vegman fried saw the writing on The wall he wanted some kind of he was Then advocating for regulation because He was hoping that like the big Banks You know in the 2009 financial crisis That he was going to be able to benefit From some sort of bailout which uh Didn't happen so I'm totally for crypto Regulation it's you know the wild west Out there and people are it's the number One uh form of fraud that people in Their 20s and 30s are falling victim to Right now and the you know Congress is Being bought out by these crypto Lobbyists to not do anything about it

It's shameful you need to take action we Need to protect you know the American People who who you know might get Involved in these crypto get rich quick Schemes but they don't deserve to have Their lives ruined because of that same Bank but freed probably does deserve to Have like fruit after this any last Thoughts Jake yeah and remember he uh When he said he won a regulation that Was all bs anyway uh he admitted to a Reporter later yeah I gave money to Democrats but it was for PR I I didn't Actually want to do any regulation I Said that I wanted regulations so that The Press would write positive things About me And that's another uh telling part of Our society the Press overall is a bunch Of Schmucks that'll believe anything a Rich person says especially if they give Money slash bribes the Democratic Politicians and he also said oh of Course I gave the Republicans too but I Hid that one because that wouldn't be Good PR but they were all bribes just so That he could keep running the scam Until they made the mistake of taking From rich people thanks for watching The Young Turks I really appreciate it Another way to show support is through YouTube memberships you'll get to Interact with us more there's live chat Emojis badges you've got emojis of me

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