12 Burst results for "Sam Trabuco"
"sam trabuco" Discussed on Bloomberg Radio New York
"Felt like he had a lot to offer. He was never super explicit about what it was about me that he wanted within his company, but it felt like, okay, well, I have a lot of experience. I worked places for almost, you know, maybe this is part of the reason why Sam ultimately wanted me to join the company. That November, Brett touched down at Linden Pindling International Airport in the Bahamas. Brett was looking forward to some getting time with Sam to discuss his new job, but that was easier said than done. Sam was working all the time, but working meant he was always in the office, always on a call. was He on podcasts. He was on interviews with media. He was talking to investors. He was always on a call talking to other people, and so was largely unavailable. Brett didn't have much luck connecting with the other executives either. Sam had surrounded himself with old friends. was There Gary Wang, the company's chief technology officer. He was one of Sam's friends from The Frat at MIT. Gary, he showed up to the office around 5 p .m., and he apparently stayed until something like 4 a .m. And I am more of like an 8 to 5, 8 to 6 kind of person, as I think most humans are. There was Nishad Singh, the director of engineering. Sam knew him from high school. Nishad was more the person who actually talked and was responsible for dealing with a lot of like the personnel issues that maybe Sam Gary or didn't want to deal with themselves. But Nishad only got in at 1 p .m. And so he was also extremely busy. He didn't see much of Caroline Ellison. By now, Sam had made her co -CEO of Alameda alongside another one of Sam's college friends, Sam Trabuco. They were in a separate little building from FTX. And so, you know, I basically didn't see them at all unless, you know, you ran into them, you know, as you were leaving. Brett to began wonder what he'd got himself into. So I found myself in that office not being able to talk to any of the people I flew all the way to the Bahamas to talk to and thought, this is kind of a waste of time. After the trip to the Bahamas, Brett felt a little funny, but startups could seem weird to new hires.
"sam trabuco" Discussed on Bloomberg Radio New York
"My colleagues said to me, hey, Brett, you worked at Jane Street. Do you know this Sam Bankman -Fried guy? And I said, I do. Why? Brett Harrison had last seen Sam at his Jane Street going away party. Sam had said he was leaving the finance world behind. And they said, well, do you know he is a multi -billionaire, founder of a crypto exchange? Brett decided to reach out. They exchanged a few texts catching up. Then, a few months later, Sam got back in touch. What he said was, if you'd like to come to FTX, we would love still to have you, which was a very strange text because we had never talked about the idea of me coming It was strange, borderline arrogant. But Brett wasn't uninterested in FTX. The possibility of being on the ground floor of a company shaking up how finance worked was exciting. I said, well, sure, well, if you would still love to have me, let's talk about it. His job was going to to be set up the US arm of FTX as president. He knew this was a young company, and he he had felt a like lot to offer. I mean, he was never super explicit about what it was about me that he wanted within his company, but it felt like, OK, well, I have a lot of experience. I've worked places for almost a decade prior to joining FTX and FTX US. Maybe this is part of the reason why Sam ultimately wanted me to join the company. That November, Brett touched down at Linden Pindling International Airport in the Bahamas. Brett was looking forward to getting some time with Sam to discuss his new job, but that was easier said than done. Sam was working all the time, but working meant he was always in the office, always on a call. He was on podcasts. He was on interviews with media. He was talking to investors. He was always on a call talking to other people, and so was largely unavailable. Brett didn't have much luck connecting with the other executives either. Sam had surrounded himself with old friends. There was Gary Wang, the company's chief technology officer. He was one of Sam's friends from the frat at MIT. Gary, he showed up to the office around 5 p .m., and he apparently worked until something like 4 a .m. And I am more of like an 8 to 5, 8 to 6 kind of person, as I most think humans are. There was Nishad Singh, the director of engineering. Sam knew him from school. high Nishad was more the person who actually talked and was responsible for dealing with a lot of the personnel issues that maybe Sam or Gary want didn't to deal with themselves. But Nishad only got in at 1 p .m. So he was also extremely busy. He didn't see much of Caroline Ellison. By now, Sam had made her co -CEO of Alameda alongside another one of Sam's college friends, Sam Trabuco. They were in a separate little building from FTX, and so I basically didn't see them at all unless you ran into them as you were leaving. Brett began to wonder what he'd got himself into. So I found myself in that office, not being able to talk to any of the people I flew all to the the way Bahamas to talk to and thought, this is kind of a waste of time. After the trip to the Bahamas, Brett felt a little funny, but startups could seem weird to new hires.
"sam trabuco" Discussed on Crypto Critics' Corner
"And then I talked to his dad later in the day. How much money were they giving you? They were talking about, I've said this before, they were talking about a billion dollars, which seemed, you know, a lot of money, but certainly would be manageable in the context of the size of the business. But later in the evening, that number went from a billion to four and a half billion. And then I said, okay, that was obviously a problem, and it's a bigger problem than they want to admit to. And so I made the decision that evening. I got on my phone, I booked myself a JetBlue flight down to the Bahamas, and I wanted to see for myself what was going on. You know, listen, I put my name and reputation at stake. I introduced Sam to a lot of people. Brett and I, one short year ago, and I believe you were there with us, we had Crypto Bahamas at the Baja Mar Hotel. Brett and I organized a dinner for the likes of Tony Blair and Bill Clinton and a whole host of luminaries. One short year ago, he fast forward, it's sort of still hard to believe that we're where we are right now. And so I needed to see it for myself. And so I went down there and I would say that the war room was despondent. And this was an exchange that should have no duration issues. That means for at least several days before FTX declared bankruptcy, at least according to Scaramucci's version of the story, and the lawsuit also alleges he was down there and part of those talks to get emergency fundraising. He knew FTX was insolvent. I don't know what's going to happen, right? I want to clarify, as usual, that we're not lawyers, we don't pretend to be, we aren't going to suggest that we would have any better idea of what's going to happen with any of this than anyone else. What's being described sounds like fraud. It sounds like a breach of fiduciary duties. It sounds like fraud. It sounds like criminal. And I don't know how that plays out. We're going to get an idea based on how the co-defendants in the FTX Alameda stuff who have already pled, what happens to them? I don't know yet. Nobody knows. I can presume they're going to get a lot less time than SPF. I really believe that. I don't know if it'll be true. We're going to find out. My belief is strongly that they will see a significantly less amount of time in prison if they get prison time at all. Outside of Sam Trabuco, who we still haven't heard from, I think when he does decide to appear, we'll be doing a lot of time in prison. We should add, in the interest of journalistic fairness, that lawyers for Joseph Bankman and Barbara Fried issued a statement to several outlets where they say, these allegations are nonsense. That house we lived in and referred to as our house and that was paid by FTX funds was in no way criminal or fraudulent, yada, yada, yada. And then they throw in some stuff about how, uh, John Ray is wasting all this money and this is a distraction. This is meant to inflame people right before our son goes on trial. And so some version of that is their statement. And that's, that's the liberty I'll give it. And we've talked about this before as well. They already put it down in writing. They can say whatever they want now. I don't really fucking care if they deny it. You sent the emails, guys. You sent the emails. You literally put it in writing. The one thing you shouldn't do- Out of context, Cass. Yeah, out of context. My fat ass, dude. We've said it before. I don't know if you're going to do crime like this on this level, if you're going to be doing, you know, moving tens of millions, hundreds of millions of dollars at a time in the name of, you know, crime. I mean, sorry. Um, not of the, not of the criminal sort, but if you're going to be doing this, don't write it down. It's super simple. Do a phone call. Like, why wouldn't you do a phone call instead? Idiots. You guys are law professors. Are you- What if the lines are tapped? Right. I don't know, man. These guys are law professors. It's hard to believe, but it makes you question everything. And this is, this is the last point I want to make. It makes you question everything. These guys had crazy reputations in Silicon Valley and the education world, right? Upper education world. They, they were well known for their, for their essays and their, their statements about tax law and, and freed particularly about criminals and, you know, treating them correctly and all this stuff. It didn't take that much money for them to completely give up their reputation and do the exact opposite of what they'd been teaching for decades. That's crazy. That's crazy. And it's not just them. And, and, and I hope people realize that. Like, it just makes you question everything so much more because who, who, who are you going to rely on now? People are going to throw away their decades long reputations in academia and everything that they once stood for, for some millions of dollars in some property. I mean, that is, that says something. And, and I don't know if that's an American societal issue. It's a global issue. I don't know, man, but it's troubling to me. There's certainly issues with many of the elites in America. I think both Joseph Bank and Barbara Fried spent a lot of time around people who were richer than them, who they thought they were smarter than, and had at some level a belief that this was finally their chance to be both smart and rich. Warped, warped and sad. And certainly a statement on the, the, the way academia, higher education in America works, especially at these private institutions. It's super sad and super corrupt. And if you want to stop that, if you want to do something about, you know, if you want to do something to stop this kind of gross academia stuff, this fraud, donate to Castcoin guys. It's super simple. Anyway, I think that's going to do it for this episode. Remember, hit the like and subscribe button and all that stuff. I hate it when people say it, but I know I have to. Thanks for listening.
"sam trabuco" Discussed on The Crypto Overnighter
"Rockstar Energy Punched, bringing a bold and unapologetic flavor packed with energy through a blend of B vitamins, guarana extract, and 240 milligrams of caffeine to fuel what's next. Rockstar Energy Drink. Good evening and welcome to the Crypto Overnighter. I'm Nick Ademus and I will be your host as we take a look at the latest cryptocurrency news and analysis. So sit back, relax, and let's get started. And remember, none of this is financial advice. And it's 10 p.m. Pacific on Sunday, September 3rd, 2023. Welcome back to the Crypto Overnighter, where we have no sponsors, no hidden agendas, and no BS. But we do have the news, so let's talk about that. Tonight we delve into FTX's mysterious multi-million dollar transfers and asks what it means for the platform's future. Then we unpack the emotional confession from the former BitBoy Ben Armstrong and the implications for his career in the crypto community. Plus, we explore why Ethereum's co-founder is dumping MakerDAO, how Grayscale is hoarding Ethereum in an intriguing manner, and the absurdity of the UK's crypto inheritance tax. Folks, if you think this FTX story is just about transfers, you're in for a ride. Wait till you hear about the yachts and courtrooms. Hit that subscribe button, you're not going to want to miss this. Bankrupt Exchange FTX has been making some eyebrow-raising moves lately. A cold wallet owned by the exchange transferred almost $10 million in altcoins from Solana to Ethereum since August 31st. The altcoins involved include Link, Sushi, Luna, and Wi-Fi. These transfers were conducted via the wormhole bridge. The reasons behind these transfers remain undisclosed. In another development, a recent filing revealed that FTX's debtors used company funds for internal cash payments to executives and direct transfers to the American Yacht Group. The list includes over $900 million in transfers to Sam Bankman-Fried, labeled simply as cash payment, $15.5 million in cash transfers, and a $3.5 million transfer to ex-Alameda CEO Caroline Ellison. The filing also showed a $2.5 million payout to the American Yacht Group for ex-Alameda co-CEO Sam Trabuco. Now here's what I'm thinking. The movement of $10 million in altcoins from Solana to Ethereum is significant. Solana has been touted as an Ethereum killer, yet here we have FTX moving assets back to Ethereum. What does that tell us about the confidence level in Solana's ecosystem? We're going to be talking more about Solana and Ethereum in a later segment. For now, the $900 million transfer to Sam Bankman-Fried is another red flag. This isn't pocket change, it's nearly a billion dollars. It's hard to ignore the distrust this breeds, especially when the Justice Department alleges that Bankman-Fried quote, misappropriated and embezzled FTX customer deposits. The $2.5 million yacht for Sam Trabuco is the cherry on top. It's a glaring example of how too much power can lead to questionable decisions. Trabuco announced his resignation a few months before the company's collapse, and yet he walks away with the yacht. But just when you thought the financial maze couldn't get more intricate, another key player makes a move that could be a game changer. Robinhood is a platform that's no stranger to making headlines. And here they are, making headlines again. The common thread here, FTX founders in their complex web of financial and legal entanglements. Robinhood's decision to reenter the scene not only alters the landscape, it adds another layer of complexity to the ongoing saga. Robinhood repurchased a significant stake previously owned by FTX founders Sam Bankman-Fried and Gary Wayne. The shares, amounting to $55 million, were initially seized by the U.S. Marshals Service as part of a criminal case against Bankman-Fried. The repurchase cost Robinhood $605 million. The shares were owned through a holding company called Emergent Fidelity Technologies. Wayne pled guilty to multiple charges, including wire fraud and conspiracy to commit securities fraud. SBF, on the other hand, continues to plead not guilty to similar charges. The repurchase agreement was approved by the U.S. District Court for the Southern District of New York. Now let's dig into the implications of this massive repurchase. First off, Robinhood's willingness to spend $605 million to buy back these shares speaks volumes about its aggressive growth plans. But what's even more intriguing is the timing. This move could be seen as a strategic play to distance themselves from the legal entanglements surrounding FTX and its founders. And let's not forget the role of the U.S. government here. The involvement of the Marshals Service in seizing and then selling these shares back to Robinhood could be perceived as the government having too much control over private assets. This is especially concerning for anyone that values financial freedom and is wary of government intervention. Robinhood's $605 million repurchase is more than just a business transaction. It's a complex web of legal, ethical, and financial considerations that could have far-reaching implications for the crypto world. And as always, it's crucial to stay vigilant and question the motives behind such significant moves in the crypto landscape. All that said, there may be something of a silver lining for some people here. As I recall, when FTX tumbled, those Robinhood shares were worth around $585 million, which by my calculations means there's some $20 million in profit here. That money should be going to FTX's creditors, another $20 million towards making things right. I mean, I hope that money isn't going to the federal government or the Marshals Service. They certainly don't need it more than the creditors do. Ever wonder what happens when the idols of crypto reveal that they've got feet of clay? Ben Armstrong's emotional spill is up next. Like and follow so you're always in the loop.
"sam trabuco" Discussed on Daily Crypto Report
"It's 8 a.m. Eastern, September the 3rd, and this is your daily crypto report. Bitcoin is down slightly at $25,927, ETH is down slightly at $1,633, and Binance Coin is down slightly at $214. As a person with a very deep voice, I'm hired all the time for advertising campaigns. But a deep voice doesn't sell B2B. And advertising on the wrong platform doesn't sell B2B either. That's why if you're a B2B marketer, you should use LinkedIn ads. LinkedIn has the targeting capabilities to help you reach the world's largest professional audience. That's right, over 70 million decision makers all in one place. All the big wigs, then medium wigs, also small wigs who are on the path to becoming big wigs. Okay, that's enough about wigs. LinkedIn ads allows you to focus on getting your B2B message to the right people. So, does that mean you should use ads on LinkedIn instead of hiring me, the man with the deepest voice in the world? Yes, yes it does. Get started today and see why LinkedIn is the place to be, to be. We'll even give you a $100 credit on your next campaign. Go to linkedin.com slash results to claim your credit. That's linkedin.com slash results. Terms and conditions apply. Ethereum co-founder Vitalik Buterin has sold his remaining 500 MakerDAO tokens worth around $580,000. This move followed MakerDAO's CEO Rune Christiansen's announcement of plans to re-implement the project on a new blockchain, potentially based on Solana. Christiansen highlighted the technical quality of Solana's codebase, its resilience following recent events, and successful forks like Pyth Network as reasons to explore Solana. He also proposed MakerDAO's new chain as a bridge between Ethereum and Solana, enhancing the multi-chain economy's network effect. A recent filing from FTX's debtor showed that the company funds were utilized for personal cash transfers to executives and other payments. The list includes over $900 million transferred to former FTX CEO Sam Bankman-Fried as cash payment, $15.5 million in cash transfers, and a $3.5 million transferred to former Alameda CEO Caroline Ellison. Notably, there's a $2.5 million payout to the American yacht group for ex-Alameda co-CEO Sam Trabuco, who purchased a boat before resigning from the company. These revelations are all part of ongoing legal proceedings against SBF with allegations of misappropriation and embezzlement of customer deposits. While prominent crypto venture capital firm Paradigm is parting ways with its CFO Nathan Apsell and their general counsel, this announcement comes from an internal email that was obtained by the publication of the block. COO Alana Palmedo expressed gratitude for their contributions, mentioning the growth and achievements Paradigm has seen during their tenure. Katie Byber, the chief legal officer who joined over a year ago, will continue to lead the legal team. Paradigm intends to announce a new CFO in the coming months with no reduction in overall headcount, considering recent hires in other areas. And finally, in September 3 crypto projects, Apecoin, Aptos, and Optimism are set to unlock a total of over $100 million worth of tokens into the circulating supply. The governance token of Apecoin DAO Ape will release 40 million Ape tokens on September 17, with the majority of these tokens going to launch contributors. Optimism's OP will unlock 24 million OP tokens at the end of September, where 33 million core contributors and investors will receive portions of those tokens. And Aptos's APT will release 4.5 million tokens on September 12, which is 2% of their circulating supply, valued at 25 million. Community members and the Aptos Foundation will receive those tokens. Well, that's all for us today. Visit us at dailycryptoreport.io for sources and links. And listen to us everywhere else you podcast under Daily Crypto Report. Hey, my name is Lovan Rumph, and I've been working my ass off as a celebrity stylist by day. And a podcast host by night. At the Low Life Podcast, it's all about keeping it real. We're talking fashion, beauty to religion, sex, drugs, mental health. I mean, there's no topic off limits here and vulnerability is mandatory. You can find my podcast, The Low Life, that's L-O, no W, everywhere and anywhere you listen to your podcasts. New episodes are out every Thursday. We'll see you then.
"sam trabuco" Discussed on Crypto Critics' Corner
"And Lifeboat was around before EA existed, but it shares many of the same philosophies and crypto people were super into that as well. So it's like a certain brand of person, a fear-mongering individual, seems to be quite attracted to these. That's not to necessarily suggest, as you said, that it was founded with those principles at top of mind. I do want to talk about, though, how much this affected SBF, the way he did business. In case you're unaware, SBF and Tara McElhay, who founded Alameda Research, they're both effective altruists. And so was Caroline Ellison. So a lot of the people involved in or she sort of was. I know Sam Trabuco as well, like a bunch of these people who were involved in this were effective altruists, and they took it very, very seriously. There's a document shown in one of these lawsuits or whatever, where it shows that Sam Bankman-Fried made a list of what he was doing that was harming people versus the good that he was doing or future good that he could do and how he was trying to weigh those concerns and weigh them actually monetarily. It wasn't just some weird system that he invented. He was actually weighing every dollar and cent as a good or bad thing. To me, that is proof positive that this philosophy played a key role in how he ended up committing fraud. Yes. But I think also you should detail how those effective altruists were very specifically involved right at the very founding of Alameda Research, because I think that kind of points at some of these issues, because Tara and some of the other people they were able to connect Sam with was the money that got Alameda Research to where it was, right? Yeah. No, I mean, that's it. Exactly. And I think a community in general was also, a lot of them were the cheerleaders for SPF, right? The benefits they were receiving were millions of dollars in donations, and ultimately that is how they measure whether their goal is succeeding or not. So again, the reason I want to talk about this, though, is because after acknowledging it, so if you go back, William McCaskill, you said there's another, sorry, who's the other gentleman involved in the beginning of EA, the founding of EA? Well, there's, I think, several people who come before McCaskill. Like I would point towards Toby Ord at Oxford and Peter Singer as both like effective altruists and stronger philosophers and writers than McCaskill. But McCaskill's like particular place of prominence in this story comes because in the United States, he acted as what a friend of the show, David C. Morris, called an effective altruism power broker, where he was connected to so many of these groups, so many of these funders and so many of these things that even in 2018, when effective altruists leaders were warned about some of Sam Bankman-Fried's improprieties, including his lies and sleeping with subordinates, it was McCaskill that like pushed to keep Sam Bankman-Fried centered in kind of this effective altruism community under this belief that like Sam Bankman-Fried would eventually be able to bring all of these other benefits to their broader community, that it was worth sacrificing and perhaps some of these earlier points in order to achieve this bigger goal. And that I think is kind of the rod at the heart of effective altruism, right? And like the reason it can be really hard to create like a coherent utilitarian moral philosophy is that it becomes really easy to use the ends to justify the means in a way that allows the means to just continue getting worse and worse and worse. And that is compounded if you effectively place an infinity on one side of your balancing scale by saying, no, this will kill all humans who will ever live in the future. And so represents the thing that it would be okay if we killed 90% of humans now, if it meant saving that entirety of humanity forward, right? It's possible to concoct that kind of justification when you get really into kind of the long-termist EA stances, and that has just obvious harms. Well, it's funny that you say this because I'm looking, so just to be clear to everyone, McCaskill did address this right around when FTX collapsed back in November. So he did address this, and what he specifically said talks about what you are exactly suggesting. He says, for years, the EA community has emphasized the importance of integrity, honesty, and the respect of common sense moral constraints. If customer funds were misused, then Sam did not listen. He must have thought he was above such considerations. A clear thinking EA should strongly oppose ends justify means reasoning. I hope to write more about this soon. In the meantime, here are some links to writings produced over the years. So he specifically says that ends justify the means isn't a healthy EA perspective. And yet, right? Like it's hard for me to fathom EA existing if you don't have some level of ends justify the means. If you don't have some, well, you have to weigh out the good versus the bad. That's part of the whole thing. And that has to be met with ends justify the means because otherwise you don't really have a philosophy at all. So it's a confusing kind of backwards statement to me. I feel confident that that statement from McCaskill was not written by a philosopher but by a public relations executive. Because like I kind of already alluded to here, like common sense, moral, whatever, isn't something that exists a priori, right? Like the fundamental basis of the philosophy that drives this is that you determine what's moral by assessing on balance it's good and it's bad. And there's variations of utilitarianism like rules-based utilitarianism where you modify that statement to say this type of action as a rule is more good than bad. And that gets around some of the issues but still fundamentally to presume that there was an obvious set of moral actions that the EA community agreed on and that Sam Bankman freed was clearly in violation of is particularly suspicious in light of the fact that time reporting suggests that William McCaskill personally advocated to keep Sam Bankman freed in the community after he knew he was violating common sense moral frameworks by lying and sleeping with his subordinates. Again, my issue with this statement now and that he's back, that he has not addressed any of this is that at the end of this statement in November, he specifically says, I was probably wrong. I will be reflecting on this in the days and months to come and thinking through what should change. He also says, if FTX misuse customer funds, then I personally will have much to reflect on. Sam and FTX had a lot of goodwill and some of that goodwill was the result of association with ideas I have spent my career promoting. If that goodwill laundered fraud, I am ashamed. So if he's so ashamed and he feels like his ideas about this philosophy indeed helped create this fraud, which is kind of like what is being suggested, I don't think anyone has denied that now at this point that the philosophy helped drive their decision making. Why has he not said anything about it? Why is he not saying like, look, I am wise? I mean, I know why, right? Like you said, there's legal reasons and other things. He was an unpaid advisor and all that for the Founders Fund. He was involved in other ways. I am sure they've accepted who knows how many donations. So I'm sure there's some legal reason for this, but that's such a bullshit excuse, especially when your whole shit is about your philosophy. I'm not surprised. I'm not even disappointed. Why would a cult address allegations against the cult? I do just want to ensure that people keep this perspective in mind as he tries to come back into the public fold and the public sentiment. We're talking about the philosophy of effective altruism and all these things and taken just as like a philosophy, as a thing you're thinking about and perhaps using like personally to guide yourself may have somewhat limited harms. I think what's particularly interesting in this case is how some of these social dynamics have developed around effective altruism. There's another community that calls themselves the rationalists and many of the people in this community that congregates in places like Les Rung consider themselves effective altruists. And like these communities often have a type of norm where you're expected to kind of present your ideas in a certain way, address other people's ideas in a certain way, and it's a sort of kind of epistemic detachment that you're supposed to maintain when you're interacting with it.
"sam trabuco" Discussed on CoinDesk Podcast Network
"Back in April, like the tensions were starting to boil over in which, according to his telling, at least he and other key executives on the team seeing started Sam Beckman -Friede's behavior as increasingly erratic and increasingly leading to arguments and outright fights among the crew, right? Not physical fights, I should note, but just back and forth that were less than pleasant. So yeah, you do get a bit more of a picture of the dysfunction that we've heard about from within the FTX empire through some of these highlights that are excerpted in the Times piece. It is just wild to see that more details keep emerging from what, again, remains a very compelling, fascinating Shakespearean story of downfall and of craziness. Yeah, wild stuff. The trial is... Go ahead, Jen. Go ahead. I was just going to say the trial is starting in October, and we should remind the audience that Ellison is a star witness against SBF. Will? The last thing I was just going to say to add on to what Zach said, even before the Brett Harrison things, there was stuff going back to 2018 and 2019 when Alameda Research was getting off the ground. There was a key split at that time. A lot of people saying that Sam Beckman -Friede's behavior was domineering and just led to a dissolution of a lot of the early key team members. People don't know that because it was a firm that no one really cared about at the time, but went on to become FTX, the behemoth that's running Super Bowl commercials. And now we have this entire downfall playing out in New York Times in one day, certainly Netflix. Well, let's go to the other stories we have with SBF because there's a few more headlines we have to read about. Let's. I'll do it. So FTX now helmed by John J. Ruth III is seeking to call back some $1 billion in cash, stocks, and other assets from former executives, including Sam Beckman -Friede himself. The lawsuit alleges that the fraudulent transfers of cash and shares, finance, political donations, real estate buys, you name it. There's also some strange details relating to Sam Beckman -Friede's brother and some aspirations around making an effective altruist colony on a tropical island. Some more crazy, strange details emerging from this story in the form of a fresh lawsuit with a big old number attached to it. Jen, I'm going to toss it to you. Another day, another FTX drama, and when we spoke yesterday about the current FTX leadership trying to get funds back from multiple different organizations that receive money from them, I think this is just all part of the bankruptcy proceedings. I think as much money as they can get back, they will get back as people don't want to be attached to the name FTX anymore. They don't want to be attached to all of this drama that's happening. And so if the money still exists, it will go back. I think, of course, this is a little bit different than what we spoke about yesterday. This Sam involves Beckman -Friede, his family members, others on the leadership team. That island piece is absolutely insane. Lawrence and I chatted about it a little bit on First Mover this morning. He was just kind of dumbfounded by this. How do you buy an entire island? There are people who live there, probably. You can't just turn it into a bunker for you and the rest of the effective altruists should there be an apocalypse one day. It's just like an absolutely insane turn to the story that, again, Zach, you can't write like I can't wait to see this turned into a movie and see all the different ways the story turns play out on on a big screen. There are some other really weird notes in here. Four hundred thousand dollars went to an entity that produced YouTube videos about effective altruism. I believe there is another thirty thousand dollars, which is small change when we look at the numbers here that that went towards a book that wasn't going to investigate something about humankind. I don't have it in front of me, but it's just absolutely wild. And the last wild point I will point out before kicking it off to you, Will, was Sam Beckman -Friede's brother Gabriel was the founder of an advocacy group called Guardians Against Pandemics. I believe we've spoken about it on the show before, which raised twenty two million dollars. This now says that most of that came from Sam Beckman -Friede himself, Will. Which probably meant that it came from a loan from FDT tokens or just from customers themselves. That's the thing with these whole lawsuits, right? We continue to see that there's been a large commingling of this, right, though, because they've either turned state's witness and turned in and they're going to take the plea deal and it's probably not going to be a very comfortable sentence, even though they have given into the plea deal or you're on the other side with Sam Beckman -Friede, who is going to go to this trial with all these headlines heaped on top of them. Now, the last part that's sort of interesting to me, and we've talked about this yesterday, is how this works on Chapter Eleven Sense, right? So John Jay Wright III is working to get all this money back on behalf of all the customers at FTX. But the question is, like, can you get all this money back? Because a lot of times it has been issued out and maybe they were poor deals, but they were deals nonetheless, and it might be outside that window. So again, if you are a Chapter Eleven expert, a legal expert, and want to talk to us on it, we'd love to hear from you because I don't get how they get this money back. I don't know. Zach? Wow. That was a nice call to action. That was very smooth. I don't know. I didn't read the legal document. I just read some of the stories. But where in the world is Sam Trabuco, right? The former co -CEO of Alameda. Is it in this document? Does it say where Sam Trabuco is besides being over water, as you famously said one time? That to me remains sort of an under -discussed aspect of this whole saga. Where is Sam Trabuco? That's why I want to know. I don't know if it's in there. I'll do some control effing a bit later on in the document itself. But if you guys know, I ask you, what do you think about that angle? That's going to be a great fake tweet one of these days from some account that changes his handles and his profile pic, Sam Trabuco arrested or something like that. We don't know. I haven't heard anything about it since. It's really odd because everyone else, again, took the plea deal. Everyone took the plea deal here, except for Sam Egbert Fried, so why has he not appeared on the scene? Maybe he's got clean because he quit early and got out of it. I don't know. Jen? I don't know. Your guess is as good as mine. That'll be for season four. That'll be for season four, guys. After the trial, we're breaking this up, we're breaking the FTX story into seasons now. Got to save some good stuff for later. All right, I'm going to do a promotion about something that we're doing that you guys should definitely check out. Mining Week presented by Foundry kicks off on Monday. CoinDesk is going to take a closer look at an industry at a crossroads. Check out features on everything from everything about mining, policy, energy consumption, what mining has to do with skulls and hot tubs. Now I'm intrigued. It's all coming your way next week. 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"sam trabuco" Discussed on Bloomberg Crypto
"Yeah, and I do believe that where the money went is still a mystery. But what seems like very plausible is that Alameda was lost a lot of money trading. I mean, and some level or another that seems to be the case. And you know, this is something that, like I said, I never really heard people talk that much about Alameda, but you know, of course, Sam had a background at the famous quant trading shop Jane street as did some of his colleagues. And so the presentation of Alameda was that it was sort of like this market neutral quantitative trading shop. And I'm pretty sure on the Alameda website, they also talked about that there were a market neutral firm. So not taking big directional that one way or another. But that being said, and you know, if you're like thinking, okay, let's go back and think more about red flags. I do recall, you know, and people have since pointed these out, but I do remember thinking at the time that the former CEO of Alameda Sam trabuco. Who left the company earlier in the earth, some point this summer. He did have these threads that did not seem like very quantity, did not seem like market neutral. And one of the threads that people point to if I recall is like basically like, oh, we went long Dogecoin ahead of Elon's SNL, which maybe, you know, maybe a fine trade, although I think that was the peak. But it's like, oh man, this is not exactly what I thought. What my impression of what Alameda was doing. And I thought what he was doing was making markets and collecting spreads between the price of a coin on one side and a price of a coin on another side or the price of a coin on a centralized exchange versus the price on the DeFi exchange. So I did, you know, I didn't think too much about it, but I did think, I guess it did seem different than what I thought Alameda was doing. We'll be right back with more from Bloomberg's Joe wiesenthal. These days, every new potential higher can feel like a high stakes wager for your small business. You want to be a 100% certain that you have access to the best qualified candidates available. That's why you have to check out LinkedIn jobs. LinkedIn jobs helps find the right people for your team faster and for free. Add your job and the purple hashtag hiring frame to your LinkedIn profile to spread the word that you're hiring. Simple tools like screening questions make it easy to focus on candidates with just the right skills and experience so you can quickly prioritize who you'd like to interview and hire. It's why small businesses rate LinkedIn jobs number one in delivering quality hires versus leading competitors. LinkedIn jobs helps you find the qualified candidates you want to talk to faster. Post your job for free at LinkedIn dot com slash performance. That's LinkedIn dot com slash performance to post your job for free. Terms and conditions apply. Change can be disruptive, but a Bloomberg we think bigger. Our sell side solutions combine trading and automation with market leading data so you can evolve, scale, and embrace change. This is Bloomberg for the sell side. Visit Bloomberg dot com slash sell side. You said to Friends of the show, Katie and Tim, that one of the signs that crypto is immature is that it's too hard to launder money. Yeah. Without getting caught. Well, this is something I mean, I've been, you know, from day one. It's like this is the question. It's like, well, what is crypto good for, right? We've probably both of us have asked this question of a million guests like, okay, it's fun as journalists that we like looking at the lines going up and down. And it's probably fun to trade big swings. But what is it good for? What is the point of any of this? And you know one of the things you hear, particularly from the Bitcoin side of the world, just like, well, it's good for censorship resistant payments. Doing the payments that the state doesn't want you to do. Doing the payments that would Venmo or PayPal or zell or your bank would kick you off for, right? Trustless money. And yet it doesn't seem to be that good for that either as far as I can tell. And so like, you know, even the sort of like bare minimum things that like crypto proponents often say, which is like, well, person a gets in person B money and persons you can't say no. I'm not even convinced that that's true because again, I think the context we were discussing was like, there was a big test of this with the Canadian trucker protest earlier this year and a lot of that money got to seized or blocked. And that was people trying to donate to the protesters. And so regardless of what you think about the protesters, mission or caused, it struck me as kind of a test of crypto's as particularly Bitcoin's main claims. And I don't think everybody lived up. They didn't really have a way of getting Bitcoin to the protesters in a way that was trustless and could avoid blockage. Well, one of the things that the truckers did is they put a bunch of wallet addresses on their signs and the size of their trucks and they were like, get send us money a year and then various regularly says, we're like, we're just going to launch this walk down. But you don't want the other hand. I think I remember so after that happened, I remember seeing these discussions, even among many sort of Bitcoin profound, oh, they shouldn't have made the wallet address just so public. Which fine, maybe. But I don't think I ever saw a great alternative. Right. Solution, and you know, it's like, okay, let's say you are going to be the focal point for dispersing the money. I'm going to send it to you and you know who the truckers are privately and you're going to disperse it. How do I trust you? How do I know you're not going to pocket it? Et cetera. And so even if you could find a way around the public wallet, episode is like, you still have the problem of trusting the intermediaries. So it's very tricky. And so I thought that that was like a pretty good test of whether Bitcoin's core claims of censorship resistance could be defended and I thought it was lacking. Is there anything that you're seeing in the response to the fallout from algorithmic stablecoins, three hours capital of Celsius Voyager, SPF, FTX that is suggesting what the next crisis could look like. So we did actually have one thought on this specific question, which is that one of the things you're hearing about now in the wake of FTX is this concept where they say, okay, crypto entity is particularly centralized ones. If they're going to be centralized should produce some sort of proof of reserves. And this idea that with cryptographic technology, you don't necessarily have to reveal your entire balance sheet or all of the items on it, but you can prove your solvency in some way. And so you have some snapshot of coins that are yours, and you can prove your solvency. And the first thought that went to my mind was, sure, you might be able to do that. But how do you know that the marks are true? And of course, in tread fi, you know, 2008, 2009, it was always like level one level two level three. Mark Smith, Mark Smith. That's right. And we saw that a bit with FTX because part of the story is how much of the FTT and serum tokens they had. And I think many people would say that those coins were marked to myth. You know, if the next stage of, okay, lessons learned from FTX, every exchange has to sort of like have some sort of cryptographic proof of solvency. Then I think the next crisis after that could have something that was like, yeah, but where do these prices come from and how reliable are they? Because we do see that, of course, with the FTT and serum question with FTX, and I'm not sure that like a proof of reserves had it been in place for FTX, would have necessarily been robust against that failure. Thank you so much for coming on the show. Thanks for having me. You can find more of Joe's work on the Bloomberg terminal and on Bloomberg dot com. And of course, on the aud lots podcast as well as the odd lots of newsletter and be sure to check out our twice weekly news lots of Bloomberg crypto. This is Bloomberg crypto, a daily podcast from Bloomberg and iHeartRadio. For more shows from iHeartRadio, visit the iHeartRadio app, Apple podcasts, or wherever you get your podcasts. Send us your comments, questions or suggestions for the show to crypto
"sam trabuco" Discussed on Bloomberg Radio New York
"Want to know whether federal prosecutors are going to draw the line at just giving out too. To Gary and to the former CEO of Alameda research Caroline Ellison, who was also bankman Friedrich's girlfriend. I want to know if they're going to give any more of those sort of agreements to other executives. We know that there's been a number who have been lining up at the door to try and get one. And I wonder if there's, you know, if you listen to stand back and freed his public statements, he just kind of like, I didn't know what I was doing, some mistakes were made. There's no ill intent. I want to see if there's any truth to that. I mean, I guess that will only come out in a trial or something along those lines. We leave because of time here in the markets of movement. Other than any Morrison, thank you so much with any mass. Folks, a single best long article, carefully researched without any of the Paul, you and I have talked about this this stupid crypto drama. There's none of that. It's just like people. This is the reporting we have on Brett Harrison, Amy Wu, Sam trabuco, et cetera, the actual people that facilitated this FTX scandal. Again, look for that on Bloomberg. It's all over our system today. I'll get it out on Twitter. At some point, as well, I've been more animosa as well. Paul, this market was moving off inflation, but I think the gentle mathematician from Cleveland maybe moved the discussion forward with going 50. That kind of jumped out. Yeah, and you kind of see that in the futures here with the S&P off 1.2% in the NASDAQ off of 1.5%. So again, just think about the data the last three days, CPI, retail sales, PPI, you can read that as inflation is still here. Yeah, it's coming down yet, peaked the boys still out there. And if you're the fed, what do you do? You know, what do you do as a ten year yield out to a December 30 high yield really round trip in it here? I'm bringing up the fame BT MM screen. I got a 6 month T Bill 5.00%. Sounds like we should
"sam trabuco" Discussed on Bloomberg Radio New York
"For her big take is anime masa investigative reporter for Bloomberg news and her big take piece is essentially an inside look at the relationship between Sam bankman freed and his best friend, I think we can say certainly a business partner his name is Gary Wong. And he thanks for being with us before we get into the nitty Gritty of what's happening as a result of the implosion of FTX, help me understand the relationship between bankman fried and Wong. I mean, who is Gary Wong? Sure, so up until now, very little has been known about Gary Wong, though he played an absolutely essential role at FTX. Not only did he cofounded along with Sam bankman creed, he was the chief technology officer, and as we illustrate in the big take, he was really responsible for most of the technology underlying FTX. And he's now returned on SBS and is working cooperating with the government as it builds a case against Sam. So he's not alone in cooperating and turning, I guess you could say against embankment freed and giving prosecutors what they're searching for, right? Carolyn Ellison is also involved here, right? That's right. So both Gary and Caroline Ellison, who was head of Alameda at the time of the bankruptcy, are both cooperating with the government. And while some more information has been known about Caroline, Gary was a little bit more of a mystery, but we reached back in time into how he built up his relationship with SBS, how they met at math camp and kind of progressed through college together to illustrate just what a dramatic turn this relationship has taken. So you mentioned math camp there. How did this relationship again? It began back in 2008 when both Sam and Gary were high school students and they attended a very prestigious but very niche camp for extremely academically like mathematically gifted students. And they met one summer doing these problem sets and attending these graduate level and undergraduate level math classes as high schoolers over the summer 2008. And then they would go on to overlap again at mass camp in 2010 and Sam trabuco, who also co headed Alameda before leaving at all to Caroline Ellison, attended the same camp as well. So it was kind of a way that they forged these early friendships. So it's a bond there, and I'm sure that bankman fried had a pretty strong reaction when Wong to use your term kind of flipped and sided with prosecutors to try to maybe get less strict punishment if that's a way of characterizing what may be in store for the two of them. Can you tell me a little bit about the reaction that bankman fried had when he learned of mister Wong's actions? To him, it felt like kind of a betrayal in some ways to see this happen. And as we have cited there in this story, lawyers have kind of described the psychological effect of what it's like as the government builds its case. It can be extremely powerful to have a cooperating witness, certainly like Gary and Caroline Ellison. In this case, because someone like Sam might feel the walls closing in on him seeing these very close confidants of his turn. So did mister Wong kind of sense what was happening and act a little preemptively? Did he seek legal counsel beforehand assuming that this is the way in which it was going to unfold? We described the scene that unfolded in the penthouse where Gary had these lawyers fly in and then he dramatically kind of surprisingly to Sam leaves the penthouse. So that was really in some ways the end of the end of their relationship so far. And now it's beginning a new, much grislier chapter. Yeah, very quickly here. What do we know about the timeline of this case? In October, the case will go to trial, Sam bingman fried has pled not guilty to the charges against him and the next chapter will be that trial in October. All right, Danny, thank you so much for being with us. Congratulations on your big take piece. It's an inside look at the relationship between Sam bankman fried and his friend and business partner Gary Wong as the trial of mister bankman freed as you just heard from any he is set to unfold this fall around the collapse of
"sam trabuco" Discussed on Bloomberg Crypto
"I mean, he did have a really impressive resume prior to joining FTX U.S.. He had worked at Jane street. We've talked about as this very elite quantitative trading firm. And that's where he met Sam bankman fried. He'd actually trained Sam bankman freed in a programming course for traders. He was above him. When they were at James street. And he also was that Citadel. This is a guy who had an incredible pedigree. I mean, he's 2° from Harvard. In talking to him about this, he was like, yeah, it's the weight of my past accomplishments. The success I've had at other places that has helped me get to where I am today. So he really wants people to look at the whole picture and not just focus on his time at FTX U.S.. Among the inner circle as it were at FTX, you know, the people who really lived in The Bahamas, you had someone named Gary Wang, who has kind of come up a lot, especially recently, what do folks need to understand about Wang, what was his role and how did he come to know back when freed in the first place? Gary Wang is this powerful, but very elusive figure within the FTX empire. He and Sam bankman freed met at math camp and then later attended MIT together. So just in general, doing smart person stuff together. And Wang yes had a an extremely powerful position within FTX. He was not only a cofounder, but he was also the chief technology officer. And yeah, very quiet dude from what we know, he really, I don't think he ever gave. Any sort of media interview. And he wasn't the most involved manager from what we know. And that kind of left space for other executives to step in and one of those was in the shot saying. And nashad Singh was also on the engineering team. Yeah, so Hughes head of engineering for FTX. And he had gone to high school with Sam bankman free and his little brother Gabe. That's how Sam knew him. He had gone on to Berkeley, both he and Gary considered to be very gifted, coders, and has been credited with allowing Alameda to essentially have an advantage on FTX with trading advantage. Using code. In the sense that he was the person who allegedly enabled Alameda to be exempt from the risk position controls that everyone else trading on FTX was subject to. Yeah, that's right. It was a GitHub account, you know, that you could trace the code to a GitHub account under his name. And GitHub is where folks, especially engineering teams, they use it to collaborate on code. It's almost like Google Docs, but for software. Now, so that was the engineering team. There were a couple of other important execs. And I am particularly fascinated with Sam trabuco. Now, the reason that I'm fascinated with some is because he like Bret Harrison seemed to have extricated himself from the FTX Alameda orbit before there were any real signs of trouble. He was the co CEO of Alameda research. Is that correct? Yeah, that's correct. Both he and Harrison were part of this mass exodus of CEOs that happened in early fall 2022. Where really the market downturn in crypto was helping to clean out C suites at various various crypto companies. So yeah, I mean, there is this question about tribute, you know, he seems to be keeping a low profile, there is a big question of whether he is collaborating with authorities, the way Gary Wang and his former co CEO, Caroline Ellison, the way they have and they've both taken guilty pleas at this point. So yeah, I mean tribute in theory would seem to know a lot. But yeah, there is this question I think a lot of the people who are still out there who haven't publicly struck deals yet. Their argument, at least this is the case with Brett Harrison, is that there was this wall up around the inner circle. I mean, one of the most shocking things to me that came out of my interview with Harrison was that he didn't know about major deals involving his own company that he found out about FTX U.S.'s bailout agreement with BlockFi from the news. So to me, that was shock aiming the president. Exactly this company. You're ostensibly in charge. Yeah, and he said he hadn't talked to Sam in months before he stepped down, you know, that there was just this communication breakdown. So yeah, I mean, the argument here is, all right, well, you know, I was not part of the inner circle, therefore I did not know about any sort of alleged wrongdoing happening here. Up next, more from Bloomberg reporter Hannah Miller on the very many FTX power players on what they're up to now. These days, every new potential higher can feel like a high stakes wager for your small business. You want to be a 100% certain that you have access to the best qualified candidates available. That's why you have to check out LinkedIn jobs. LinkedIn jobs helps find the right people for your team faster and for free. Add your job and the purple hashtag hiring frame to your LinkedIn profile to spread the word that you're hiring. Simple tools like screening questions make it easy to focus on candidates with just the right skills and experience so you can quickly prioritize who you'd like to interview and hire. It's why small businesses rate LinkedIn jobs number one in delivering quality hires versus leading competitors. LinkedIn jobs helps you find the qualified candidates you want to talk to faster. Post your job for free at LinkedIn dot com slash performance. That's LinkedIn dot com slash performance to post your job for free. Terms and conditions apply. Imagine working on that breakthrough idea of yours uninterrupted for hours on end. 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"sam trabuco" Discussed on Crypto Voices
"Thoughts just on generally how this reverberates through the market. And everything, but there's so much, obviously, that's going on in the past few weeks. We can probably save that pontificating for the end. So let's move it forward then. So obviously, here we are. Next big shoe to drop was FTX. So I'll just leave them broad to start. How have you been feeling in the markets? These last few weeks? Yeah. Interesting. I was in a pretty dark and depressed place to be honest. From the time that I finally had to file against Celsius at the beginning of July, and then when they counter sued me out of appropriate order, by the way, we sued them in state court before the bankruptcy. They should have responded to our claims, which is basically what their claims are in the bankruptcy case against me in state court. They didn't weird legal move that should be looked down upon. Now everything with my cases currently in the bankruptcy court, FTX really sad. I think it changes our industry fundamentally and we'll see what the reverberations of that are over the next few years. It's a whole different level. Compared to what happened with Luna and Tara, Celsius Voyager, it's really sad. Two months earlier, I would have had a very significant sum of 7 figures on FTX international and would have been completely screwed. Thankfully, I misplayed the Ethereum merge. And after a major hit decided that I wasn't going to be trading any more after mid September for at least 6 months, taking a 6 month hiatus. So I had no money on any exchanges when this all happened. Thankfully. But yeah, as I said, I think earlier, there was one person that I'm very close to in the world that was a very early person at Alameda. Before FTX, I think, was even accepted. And me being me based on everything that I know, and from what I've heard, you know, I don't have many opinions on Sam and stuff, but I do think that. We're not getting like people aren't really comprehending the real story, which is that I think that he really was FTX ing all day every day for the last year and a half and Caroline and Sam were running Alameda and there was this accounting mishap, but I think that the only people that would have potentially known of like, I do believe the story that things were happening in such a way that Sam didn't realize I do believe that because I've seen it from like being at an executive level in another multi $10 billion crypto company and how people treat different pieces of accounting and oversight and you wouldn't believe how bad and how little some of that stuff exists. But I do believe him, I personally do when I watch him on these streams and he says, I didn't realize what was happening. I can, I feel that energy. I really do. And I feel like the only people that would have noticed would have been Caroline seeing that shit was shit was like, oh shit, we lost a lot of money. This hasn't been debited. Let's just not tell anyone because hopefully we'll make the money back. I have no idea. I think it's super weird that Sam trabuco has not has been silent this whole time. I think that the fact that he left when he did and stepped away, it would be flabbergasting to me if he didn't basically see this realize basically pulled a JSON. Like I did with Celsius a year and a half early. He just did it 6 or 9 months earlier. Saw something was super fucked and was like, peace I'm out, you know? Maybe that's not the case, but something in the universe is telling me that it is the same as like my situation with Celsius. And if that's the case, fuck him. It took Celsius a year and a half and many, many, many other mistakes to go under in a much smaller way than FTX did. And if Sam knew shit was going down and knew there was like an accounting issue and then 6 months later and then left and then 6 months later this happened, fuck him. I hope that that's not what happened. But that's my theory. Interesting. So I actually like to hear a little bit more about why you think it's why do you think it's possible? And we probably all see in this orc chart of all of the entities that are related and I only seen it once briefly. Like it's not on the top of my. The takeaway is it's a mess, right? There's like entities and they're geographically distributed and it is a mess. I've dealt with so many lawyers in my life. I would love to know who the fuck were their lawyers who were advising them because usually I won't let lawyers do things unless I have a general grasp of what's going on and they had so many entities. It was out of control. I don't know, man. It's so weird. You know, my takeaway, right? It's probably overly complex. And so it sounds like you think it's plausible that Sam just he wasn't in the weeds enough to see the mechanics here. With regard to certain things about Alameda's trading positions, yes. I think that I think that what he should have realized 100% is when binance wanted to be bought out of their FTT 9 months ago or whenever the fuck it was. STT is something where and I think that this is like the most important takeaway that people should take from me in terms of how I see the crypto space about what happened is that as soon as binance wanted to get out of their FTT position. STT immediate FTT ability to be a collateralized asset with any liquid able value. It becomes 100% dependent on how much money Alameda FTX or other stakeholders in FTT are willing to put by walls up for. And because basically that's how that's how the governance token model and ecosystem works. If you have seriously concentrated token allocations, even in the one to 7% range, but a number of them in a specific tokens ecosphere, that centralizes not risk, but it's centralizes the ability for the market cap of that coin to change very quickly. And for him to not have realized that if they were using FTT in the way that they were, it absolutely should have been