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SBF’s Jailhouse Gambit: Will Trump Answer His Call?

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  • SBF seeks a pardon from Trump, sparking controversy in the crypto community.
  • Despite efforts to reduce his sentence, SBF’s chances of a pardon remain slim.
  • The outcome could significantly impact public perception of crypto and future regulations.

Convicted FTX founder Sam Bankman-Fried, known by his initials SBF is allegedly making a bid for a presidential pardon from Donald Trump. This unexpected move has drawn sharp reactions from various corners of the crypto community. Rumors about a potential pardon gathered steam after hush-hush meetings by his parents, Stanford Law School professors Joseph Bankman and Barbara Fried, with key figures in Trump’s orbit.

But later, the disgraced founder became more emboldened, talking publicly about his retrial in a phone interview, becoming active on X, and conducting an unauthorized interview with Tucker Carlson that ultimately landed him in solitary confinement.

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SBF's Jailhouse Gambit: Will Trump Answer His Call? 2

SBF was sentenced to 25 years in prison for the forfeiture of $8 billion from FTX customers. Since then, more than two dozen letters were filed to plead for the judge’s leniency. Bankman-Fried’s legal team also requested US District Judge Lewis Kaplan to punish him for not more than 6.5 years, citing his mental state and charitable deeds.

SBF vs. Ulbricht: Analyzing the Pardon Plea

While there’s no official confirmation from the White House, Trump’s pardon of Silk Road founder Ross Ulbricht and the evolving stance on cryptocurrency are seen by many as the next potential chapter in Trump’s pro-crypto narrative.

Experts say Bankman-Fried, who has described his sentence as “draconian,” lacks the same grassroots support that Ulbricht got from libertarians and crypto enthusiasts.

Despite efforts to reduce his sentence, political insiders view his chances of a pardon as slim. While Trump has shown a willingness to pardon controversial figures, SBF’s actions, which triggered a prolonged “Crypto Winter,” have left him largely ostracized by the crypto community.

While Bankman-Fried’s pardon plea remains a long shot, it highlights the complex intersection of politics, finance, and the crypto industry. The outcome of his appeal could have significant implications for the public perception of crypto and the future of regulatory actions in the space.

Jailed FTX Founder SBF Tweets and FTT Token Surges by 30%

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  • Sam Bankman-Fried returned to social media after 767 days, surprising the crypto community.
  • His post on X caused a 30 percent surge in the FTT token before it quickly dropped.
  • Investors speculated whether he was posting himself or if someone managed his account.

Sam Bankman-Fried, the former CEO of the now-defunct FTX exchange, returned to social media after 767 days. His unexpected presence on X led to a brief surge in FTT, the native token of FTX, which jumped by 30%. The token quickly dropped after the initial spike, raising speculation about his online activity and its influence on the market.

FTX Token FTT Surges Briefly After SBF Posts

FTT, the digital asset tied to FTX, saw a significant price movement following Bankman-Fried’s social media posts. The token rose from approximately $1.60 to $2.07 before declining to $1.78. FTT traded at $1.73 at press time, reflecting volatile market reactions.

Crypto traders reacted quickly, pushing the price higher before profit-taking led to a pullback. Despite the exchange’s collapse, the brief spike highlighted ongoing interest in FTX-related assets. Market observers questioned whether the rally was due to speculation or genuine optimism about FTX’s future.

Investors speculated that Bankman-Fried’s unexpected online presence contributed to the short-term surge. Some questioned whether he was posting or if someone managed his account. Concerns over security and communication restrictions in prison added to the uncertainty surrounding his activity.

SBF’s Social Media Posts and Speculation Over Online Activity

Sam Bankman-Fried posted a thread on X discussing recent U.S. federal layoffs, drawing comparisons to corporate job cuts. He sympathized with affected employees and stated that layoffs often occur despite an individual’s performance. His remarks sparked discussions about his ability to post from prison and who might handle his account.

A source familiar with the situation stated that Bankman-Fried does not have direct access to social media. He can, however, communicate externally through the Corrlinks system, which allows prisoners to send messages. His return to X after two years led to speculation over whether he was speaking freely or through an intermediary.

Observers noted that his statements aligned with recent political shifts, including his criticisms of the Democratic Party. He praised Republican crypto policies and suggested that political motives influenced his trial. These comments added to the growing debate about his legal case and potential clemency efforts.

Legal Battle and Efforts for Clemency

Bankman-Fried has been serving a 25-year sentence since March 2024, with an $11 billion fine. Authorities found him guilty of misusing FTX customer funds to support risky trades through a sister company. His conviction led to one of the largest financial scandals in crypto history.

His parents have sought clemency from former President Donald Trump. Their efforts follow the recent unconditional pardon of Ross Ulbricht, a controversial figure in the crypto community. Despite his high-profile fraud case, the clemency request sparked debates on whether Bankman-Fried could receive leniency.

His trial and conviction remain a subject of political and legal scrutiny. Supporters argue that he faced an unfair trial, while critics believe his punishment was justified. As discussions continue, his online activity adds another layer of intrigue to his ongoing legal battle.

FTT 80% Surge Amidst SBF Pardon Rumors

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  • FTT price surging on SBF pardon speculation.
  • Higher lows signal a potential 80% price surge.
  • Technical analysis confirms strong bullish momentum.

FTX token FTT is making steady gains as the price forms higher lows, suggesting potential for a further upside. This bullish momentum could propel FTT to reach the $5 to $5.90 range, representing a 70% to 80% increase from the current price.

The technical chart clearly shows the token confirming and holding higher lows, a key technical indicator that often signals an upward trend. This bullish momentum marked by the green candlesticks suggests that FTT is showing significant progress and could continue to rise, reaching the $5 to $5.90 range, a significant increase from its current price. The overall trend is upward, with the price making higher highs and higher lows.

In short, $FTT is currently in a strong uptrend, and the formation of higher lows suggests that this trend is likely to continue. Investors who are bullish on FTT should consider buying the token at its current price, as it has the potential to reach significantly higher levels in the coming months.

FTT: SBF Pardon Speculation

Adding to the market dynamics is the ongoing speculation surrounding a potential presidential pardon for Sam Bankman-Fried (SBF), the ex-CEO of the bankrupt crypto exchange FTX. In November 2023, Bankman-Fried was convicted on all seven counts of fraud and embezzlement and sentenced to 25 years in prison.

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FTT 80% Surge Amidst SBF Pardon Rumors 4

However, rumors of a potential pardon have emerged due to his massive political donations to the Democratic Party, including $5.2 million to pro-Biden super PACs during the 2020 election cycle. These acts have raised concerns about potential political influence on his case. The discussion gained traction after Tesla CEO Elon Musk commented on the topic via social media, expressing his disbelief if Bankman-Fried is not pardoned.

SBF’s Jail Tips Ignite Solana Speculation

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FTX kingpin SBF has returned to public scrutiny, and this time he is reportedly offering tips from jail to security guards on how to buy Solana. While it has sparked hilarious reactions, some believe that Solana is gearing up for a surge in March, especially since SBF sentencing is less than a month away. The bankrupt crypto platform had close ties with the digital asset as it held substantial amounts of SOL. However, despite the crash, SOL bounced back, maintained its popularity as an Ethereum competitor, and continues to grow exponentially.

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SBF's Jail Tips Ignite Solana Speculation 6

Meanwhile, Bankman-Fried 31 has recently appointed Marc Mukasey, who previously represented former President Trump, to oversee his sentencing. Mukasey is renowned for his assertive courtroom presentations. It will be interesting to see what kind of arguments he brings to the court in the high-profile trial.

On January 27, SBF’s legal representatives filed a legal memo in the U.S. District Court in Manhattan, seeking a reduction in the prison sentence from five and a quarter to six and a half years. In the court memo, the lawyers stated that their client is “deeply, deeply sorry” for “the pain he caused over the last two years.” “His sole focus after the collapse of FTX was making customers whole.”

SBF’s Crucial Date

According to law experts, the filing comes at a crucial time before Mr. Bankman-Fried’s sentencing on March 28, whose alleged crimes carry a maximum sentence of 110 years. The final decision rests with federal judge Lewis A. Kaplan, who is overseeing the case of the fallen crypto mogul. Coinbase’s Chief Legal Officer believes that Bankman-Fried could face decades behind bars even if Judge Kaplan decides not to impose the maximum sentence.

Miriam Baer, vice dean at Brooklyn Law School, stated that the judge “could still give a very serious sentence given how young Mr. Bankman-Fried is—say, a 30- or 35-year sentence.” Successfully appealing and overturning criminal convictions as serious as this, is a rare occurrence. Since last summer, SBF has been placed at the Metropolitan Detention Center in Brooklyn, where he has spent much of his time working on the case, a person with knowledge of the matter said.

SBF Mulls Appeal In Next Move

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FTX’s kingpin, Sam Bankman-Fried, or SBF, is currently pursuing a potential appeal, as revealed by his legal team. The decision to forgo post-trial motions, as legal experts suggest, hints at the likelihood of an appeal. This aligns seamlessly with the staunch assertion of SBF’s innocence by lead attorney Mark Cohen, who vows to “continue to vigorously fight the charges against him.”

In a letter dated December 1 to Judge Lewis Kaplan, Bankman-Fried’s legal representatives conveyed their decision not to file any post-trial motions. However, they made it clear that they reserve the right to pursue any claims through an appeal. This strategic move by the legal team emphasizes their commitment to challenging the charges against SBF through the appellate process.

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SBF Mulls Appeal In Next Move 8

Before this development, Bankman-Fried’s legal team had filed a bail plea, seeking his release. Unfortunately, Magistrate Joyann Ferguson Pratt denied the plea, citing concerns that the former crypto mogul posed a potential flight risk. His next hearing is scheduled for February 8, 2024.

The downfall of the once-respected billionaire unfolded dramatically with the catastrophic collapse of his digital asset exchange. The repercussions of this event reverberated through the volatile crypto market, culminating in SBF’s conviction in November. The high-stakes courtroom saga, capturing the attention of financial markets and the crypto community alike, concluded definitively with the former FTX founder being found guilty of orchestrating one of the most substantial financial fraud schemes in US history.

SBF Faces 7 Counts Of Fraud & Conspiracy

During the month-long trial, Bankman-Fried faced seven counts of fraud and conspiracy. Prosecutors argued that he had misappropriated a staggering $8 billion from his cryptocurrency exchange’s customers for personal gain, attributing greed as the primary motivator. The jury, consisting of 12 members in Manhattan federal court, delivered the verdict, exposing SBF to a potential maximum sentence of 5 to 20 years in prison for each count.

The charges encompassed wire fraud, a wire fraud conspiracy, and a money laundering conspiracy. Furthermore, sentencing for Sam Bankman-Fried is scheduled for March 28, 2024, marking a crucial milestone in this high-profile legal battle that has sent shockwaves through the cryptocurrency and financial realms.

Former FTX Execs Launch New Crypto Exchange After Testifying Against SBF

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A new cryptocurrency exchange is being launched by a group of former FTX executives, including one who testified against FTX founder Sam Bankman-Fried in his fraud trial. The new exchange, called Backpack Exchange, claims to offer a more secure and transparent way of trading digital assets.

Backpack Exchange is a project of Trek Labs, a Dubai-based startup led by Can Sun, the former general counsel of FTX. Sun was one of the key witnesses in the Bankman-Fried trial, who was convicted earlier this month for diverting $9 billion of customer funds to his trading firm, Alameda Research through a secret software backdoor.

Sun said he left FTX after finding out about Bankman-Fried’s scheme and refused to help him cover them up. He went further to later cooperate with federal prosecutors by providing crucial evidence against Bankman-Fried.

Sun expressed his desire to apply the insights gained from FTX’s failure to develop a superior option for crypto traders. Collaborating with Armani Ferrante, an ex-FTX colleague and the CEO of Trek’s British Virgin Islands-registered holding company, they aim to create a better solution.

Ferrante also manages a partner firm, Backpack, specializing in the design and operation of digital currency wallets. Additionally, Trek’s executive team includes Sun’s former legal deputy, who happens to be Ferrante’s wife.

Backpack Exchange Enters Post-FTX Market

Backpack Exchange, which plans to launch in beta later this month, will use Backpack’s technology to allow users to hold funds in their own “self-custody” crypto wallets that the exchange itself wouldn’t be able to unilaterally access.

These wallets use so-called multiparty computation techniques that require several parties to approve any transaction. Customers on Backpack Exchange would be able to verify their holdings at any time, Sun and Ferrante said.

The venture is looking to sell a 10% stake to investors at a valuation of over $100 million. Sun and Ferrante said they had hired other former FTX legal and compliance employees at Trek because of their skills and experience. Sun disclosed his previous role at FTX in regulatory filings and investor materials, and he also informed Dubai’s regulator of his testimony.

In a post-FTX world, you need trust and transparency to create a true alternative to the other players, Sun said.

It remains to be seen how investors and users will react to the new exchange, given the background of its founders. Ferrante’s name, not Sun’s, appeared in a press release last month announcing the launch of Backpack Exchange.

Related Reading | Solana’s Meteoric Rise: Unveiling GSOL’s Staggering Surge and Market Implications

FTX Claimants Hit Jackpot Amidst Landmark SBF’s Verdict

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In the aftermath of the FTX ex-CEO’s conviction on all seven charges, claim holders of the defunct exchange find themselves in an unexpectedly favorable position. Recent data from Claims Market reveals a substantial surge in FTX’s claim pricing of 57%. Similarly, Celsius claims have risen by approximately 35–40%, Genesis claims by 50%, Alameda claims by 10-15%, and 3AC claims by 7-9%. These claims represent the right to a specific amount of money and are staked by creditors in anticipation of recovering a portion of their investments in the event of bankruptcy or similar circumstances.

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FTX Claimants Hit Jackpot Amidst Landmark SBF's Verdict 10

Investors often trade these claims based on their forecasts of the final recovery amount. A spike in claim pricing signals an increase in the expected recovery value. While many attribute the surge in FTX claims to the recent landmark verdict, it may also be influenced by the remarkable valuation growth of artificial intelligence companies previously supported by the exchange.

Meanwhile, claim prices for Celsius, Genesis, Alameda, and 3AC vary significantly, showcasing the diverse dynamics within this realm. This situation provides a captivating glimpse into the evolving landscape of cryptocurrency claims. FTX’s strategic investments in these promising startups have unexpectedly provided claimants with the potential to receive significantly higher amounts than initially envisioned.

FTX’s Ex-CEO Convicted On Seven Charges

As reported by TronWeekly, the electrifying trial that gripped financial markets and the crypto community ended on a decisive note. Former FTX founder Sam Bankman-Fried was found guilty of orchestrating one of the biggest financial fraud schemes in US history. The month-long trial saw Bankman-Fried facing seven counts of fraud and conspiracy.

Prosecutors contended that he had embezzled an astounding $8 billion from his cryptocurrency exchange’s customers for personal gain, citing greed as the primary motivator behind his actions. The verdict was delivered by a 12-member jury in Manhattan federal court, with a maximum sentence of between 5 and 20 years in prison for each count. The charges included wire fraud, wire fraud conspiracy, and money laundering conspiracy. Sentencing has been set for March 28, 2024.

FTX: Did SBF’s Lawyers Find Chink In Nishad Singh’s Defense?

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The legal battle surrounding former FTX CEO Sam Bankman-Fried has reached an intriguing twist in its third week, with the spotlight shining brightly on Nishad Singh, FTX’s former Director of Engineering and a close associate of Bankman-Fried. Singh’s testimony delivered a significant blow to Bankman-Fried’s defense, revealing crucial details about the downplaying of Alameda Research’s negative balance and questionable financial dealings, despite the reluctance of the team involved.

As the trial unfolds, Singh’s cross-examination promises to unveil even more interesting aspects of this high-stakes legal drama. On October 17, the trial of the former founder of the now-defunct crypto exchange continued, with Nishad Singh taking the stand. Building on his previous revelations, Singh provided further insight into Bankman-Fried’s alleged wrongdoings while facing cross-examination by SBF’s lawyer, Mark Cohen.

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FTX: Did SBF's Lawyers Find Chink In Nishad Singh's Defense? 12

During Singh’s direct examination on October 16, he disclosed a conversation between FTX’s co-founder Gary Wang and Adam Yedidia, where Alameda Research’s negative balance swelled to an unexpected $8 billion. Following this revelation, Alameda’s former CEO, Caroline Ellison, shared a spreadsheet displaying the negative balance with him, Wang, and Bankman-Fried. However, as per Singh’s testimony, Bankman-Fried dismissed the alarming figures, attributing them to a mere bug in the system.

SBF’s Lawyer Grills Former FTX Engineer

In another revelation, Singh claimed that he took out a loan amounting to $477 million from the exchange on SBF’s advice. However, Singh clarified that the proposed transaction remained purely on paper and never materialized into actual cash.

Despite Singh’s compelling testimony, Bankman-Fried’s defense team, led by Mark Cohen, launched a counterattack during cross-examination. Cohen strategically questioned Singh in a manner that could potentially cast doubts on his credibility, a tactic previously absent during the cross-examination of other witnesses, including Wang and Caroline.

As the courtroom drama intensifies, legal experts and cryptocurrency enthusiasts are closely monitoring the proceedings. The revelations made by Singh have added layers of complexity to the case, raising questions about accountability, transparency, and ethical conduct within the cryptocurrency industry. With Singh’s testimony poised to unveil more hidden truths, the FTX trial continues to captivate the public’s attention, leaving the crypto community on edge, awaiting the next shocking revelation in this gripping legal saga.

FTX: Nishad Singh Struggle To Say No Amidst SBF’s Choices

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Nishad Singh, a former core member of SBF’s inner circle and the ex-director of engineering at FTX Exchange, has pleaded guilty for the third and final time, sending ripples through the financial world. Singh’s guilty plea comes as he is cooperating fully with prosecutors, shedding light on the intricate web of deception within SBF’s empire.

Appearing as a witness in the high-stakes legal drama, Singh didn’t hold back, providing damning details about SBF’s extravagant lifestyle, labeling it as excessive and “super ostentatious.” Singh also raised eyebrows by revealing SBF’s association with high-profile personalities like Katy Perry, Orlando Bloom, Jeff Bezos, and Kris and Kendall Jenner. Most notably, Singh highlighted SBF’s relationship with Michael Kives, a former aide to Hillary Clinton, claiming that SBF expressed a keen interest in showering Kives and Bryan Baum with staggering bonuses and substantial long-term capital for their VC firm.

Despite Singh’s efforts to dissuade SBF from investing in K5, the indicted CEO went ahead, channeling hundreds of millions of dollars into K5 through Alameda Research Ventures LLC. A spreadsheet unveiled SBF’s reckless spending spree, with investments such as $45 million in SkyBridge Capital and a staggering $250 million in Modulo Capital, a hedge fund co-founded by a former close associate of Bankman-Fried.

FTX: The Revelation

Additionally, Singh shed light on FTX’s collaboration with Telegram, revealing the controversial deal where FTX aided Telegram in building a payment mechanism, earning a share of Telegram’s native TON tokens. Despite objections from Singh and Caroline Ellison, another member of SBF’s inner circle, Bankman-Fried insisted on pursuing the deal, causing internal discord.

The saga reached a dramatic climax in a conversation in September 2022 when Singh confronted SBF about FTX’s precarious state. SBF’s dismissive response, “We are a little short on deliverables,” left Singh in disbelief. Feeling deeply betrayed, Singh testified that FTX’s breach of trust with its users was “so evil” that he contemplated suicide. In his emotionally vulnerable state, Singh admitted to considering falsifying transactions, making it appear as though personal loans taken out in his name using company funds had been repaid.

Singh’s shocking revelations come on the heels of similar admissions by Gary Wang and Caroline Ellison, the other members of SBF’s inner circle, who have also pleaded guilty and are cooperating with prosecutors.

SBF Alleges Binance’s Secret Plot In FTX Downfall

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The saga behind SBF’s once-thriving crypto empire has taken a dark turn, exposing a trail of secrets that could rival a Hollywood thriller. From mishandling customers’ funds for personal luxuries to plotting against rivals and a love story turned sour, this infamous incident reads like a gripping movie script. The latest revelation emerged in the form of a November 2022 internal document, presented as evidence in the ongoing trial.

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SBF Alleges Binance's Secret Plot In FTX Downfall 14

In the memo, Bankman-Fried accused Binance, FTX’s rival, of orchestrating a malicious PR campaign against them. He alleged that Binance leaked an Alameda balance sheet to the media, triggering a chain of events that led to FTX’s downfall. To recall, CoinDesk, on November 2, published a report based on the leaked balance sheet, hinting at FTX’s vulnerable position. The after-effects of the article were catastrophic, causing ripples across the crypto industry. Binance, at the time of writing, remains silent in response to these allegations.

Next, the document also highlights TRON founder and Huobi’s advisor, Justin Sun, whom Bankman-Fried once contemplated as a potential investor to approach. However, he realized that Sun was closely associated with CZ. In his desperate efforts, SBF also pondered sharing a confident series of tweets, a move that Ellison confirmed Bankman-Fried had indeed executed.

Furthermore, in the document, the former CEO noted that the then-FTX had substantial capital but limited liquidity. Caroline Ellison, SBF’s former girlfriend and a star witness, clarified during the court proceedings that this indicated that out of the $12 billion in client assets on the exchange, FTX had only one-third available, amounting to “$4 billion to process their withdrawals.”

SBF’s Bribe To Chinese Officials

Amidst the trial, a pivotal moment arrived when Ellison, the ex-head of FTX-linked trading firm Alameda Research, delivered a damning testimony on October 10. She revealed Bankman-Fried’s attempts to unlock frozen funds on Asian crypto exchanges, detailing intricate schemes involving imbalanced trades and even bribing Chinese government officials.

Bankman-Fried faces seven fraud charges in this trial. Even if found innocent, he is slated for a second trial in March, facing additional counts. The courtroom drama continues, unfolding a scandalous tale that has gripped the crypto community.