SBF

Why is Solana (SOL) price up this week?

The recovery in SOL price appears to be driven by SPL tokens and a surge in DeFi and NFT activity.

Solana’s native token, SOL (SOL), gained 5.5% on Dec. 13, reclaiming the $72 support level. Over the past four days, it experienced a 16.7% correction, dropping from a high of $77.80 on Dec. 9 to a low of $63.75. The question is whether the factors driving this recovery will continue to support recent gains.

The rally in SOL was fueled by three factors, in addition to the U.S. Federal Reserve’s announcement on Dec. 13 of three interest rate cuts throughout 2024. Reduced returns on fixed-income investments are typically seen as bullish for risk-on assets like cryptocurrencies.

During a Dec. 12 interview on CNBC, Commodities Futures Trading Commission (CFTC) Chair Rostin Behnam mentioned that the “turf war” among various regulatory agencies is hindering the establishment of clear guidelines for the sector. Behnam believes most tokens are commodities under existing laws and expects the crypto market to persist.

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SBF was almost extorted for ‘protection' in Brooklyn jail, recalls ex-inmate

Gene Borrello, a former prisoner at MDC, told crypto blogger Tiffany Fong that Sam Bankman-Fried was targeted for his timid nature and having “the body of the 80-year-old.”

Sam Bankman-Fried was reportedly worried for his safety during his pre-trial detention time at the Brooklyn Metropolitan Detention Center and even considered paying another inmate for “protection,” according to a former inmate. 

New York mob enforcer-turned-informant Gene Borrello told crypto blogger Tiffany Fong in a Nov. 30 interview that he spent time with Bankman-Fried in the lead-up to his criminal trial.

Borrello said during his time there, other prisoners saw the former crypto mogul as timid, having “the body of the 80-year-old,” and was presumed to have access to money.

“He has the body of the 80-year-old. He has, like, no shape to him, you know what I mean?”

A prisoner reportedly attempted to make Bankman-Fried fearful to extort him for protection money, according to Borello.

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SBF was almost extorted for ‘protection’ in Brooklyn jail, recalls ex-inmate

Gene Borrello, a former prisoner at MDC, told crypto blogger Tiffany Fong that Sam Bankman-Fried was targeted for his timid nature and having “the body of the 80-year-old.”

Former FTX CEO Sam “SBF” Bankman-Fried was reportedly worried for his safety during his pretrial detention time at the Brooklyn Metropolitan Detention Center and even considered paying another inmate for “protection,” according to a former inmate. 

New York mob enforcer-turned-informant Gene Borrello told crypto blogger Tiffany Fong in a Nov.

Borrello said that during his time there, other prisoners saw the former crypto mogul as timid, having “the body of the 80-year-old,” and he was presumed to have access to money.

“He has the body of the 80-year-old. He has, like, no shape to him, you know what I mean?”

A prisoner reportedly attempted to make Bankman-Fried fearful to extort him for protection money, according to Borello.

“[The other prisoner] wanted Sam Bankman to feel like ‘this is dangerous in here, you need protection,’” he recalled.

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FTX seeks to claw back $460M from Bankman-Fried-backed VC firm

While the funds represent a small portion of FTX’s overall asset shortfall, the settlement means the firms can avoid a costly legal battle.

Bankrupt crypto exchange FTX is seeking to recover $460 million of allegedly misappropriated customer funds from venture capital firm Modulo Capital, which received a sizeable investment from Alameda Research last year.

As previously reported, Alameda Research — FTX’s sister trading firm — was understood to have invested around $400 million in Modulo in 2022, in one of the biggest investments undertaken by FTX under SamBankman-Fried’s leadership.

In a March 22 filing, FTX claimed the investment from Alameda Research was at the direction of Bankman-Fried, with Alameda investing $475 million in Modulo in a series of transfers beginning in May 2022.

On June 16, Alameda entered into a limited partnership agreement with Modulo,  according to the filing, which resulted in Alameda transferring the aforementioned funds to Modulo in exchange for ownership of 20% of Modulo’s Class A shares.

In bankruptcy proceedings, payments made to entities prior to the bankruptcy filing may be eligible to be clawed back and redistributed to creditors. While the clawback period is 90 days for most unsecured creditors, it is one year for “insiders,” a term that includes general partners.

As per the settlement agreement, Modulo has agreed to repay $404 million in cash and will give up its claim to $56 million worth of assets held on FTX’s crypto exchange, representing nearly 97% of FTX’s initial investment.

The settlement would also result in Alameda losing any claim to its Modulo shares.

Modulo Capital was founded in March 2022 by three former executives at Jane Street, a New York-based firm that once employed Bankman-Fried and former Alameda CEO Caroline Ellison.

Bankman-Fried is also reported to have been in a romantic relationship with one of its founders, Xiaoyun “Lily” Zhang, which some have theorized was the motivation behind his push to invest in the obscure VC firm. 

The deal will still need to be confirmed by United States Bankruptcy Judge John Dorsey, with a motion hearing set for April 12.

Related: FTX debtors file lawsuit against exchange’s Bahamian arm on ownership of property

In its latest presentation to creditors on March 17, FTX noted claims against it surpassed $11 billion, compared to just $4.7 billion in assets for a total shortfall of nearly $7 billion, so while the $460 million settlement would be a huge win for creditors it still only represents less than 7% of the current shortfall.

FTX’s summary of claims vs assets in a presentation to creditors. Source: Kroll

Related: Best and worst countries for crypto taxes — plus crypto tax tips

SBF’s inner circle received $3.2B, mainly from Alameda: Court filings

Billions worth of loans and payments flowed from FTX entities to Sam Bankman-Fried and five other former executives of FTX and Alameda Research.

FTX and Alameda Research’s former top brass received $3.2 billion in payments and loans from FTX-linked entities, according to the FTX administrators handling the firm’s restructuring.

FTX, now helmed by CEO John Ray III, has been tracking missing funds from the exchange since its collapse. It estimates a total of $8.9 billion is missing.

According to a March 15 statement from FTX Debtors, financial statements it filed in the Delaware Bankruptcy Court point to billions of dollars worth of loans and payments that allegedly flowed to Sam Bankman-Fried and high-ranking executives, which came mainly from trading house Alameda Research.

Bankman-Fried, however, reportedly received the lion’s share of the funds at $2.2 billion.

Others named in the list include former FTX director Nishad Singh, FTX co-founder Gary Wang, and former Alameda Research CEO Caroline Ellison, among others.

It provided a rough breakdown of the payments made to the FTX executives, as follows:

  • $2.2 billion to Sam Bankman-Fried
  • $587 million to Nishad Singh — former FTX director of engineering
  • $246 million to Zixiao “Gary” Wang — FTX co-founder
  • $87 million to Ryan Salame — former co-CEO of FTX Digital Markets (FTX’s Bahamian entity)
  • $25 million to John Samuel Trabucco — former co-CEO of Alameda
  • $6 million to Caroline Ellison — former CEO of Alameda

The amounts exclude over $240 million used for various purchases, such as luxury properties in the Bahamas, donations to political and charitable causes and “substantial transfers” to non-FTX subsidiaries, it noted.

FTX’s management said it is currently investigating its rights to pursue potential action against the recipients, along with their subsequent transferees, and that ongoing efforts are “expected to result in the further identification of assets, liabilities and transfers.”

It added it’s looking at ways to claw back the funds from the former executives but said the “amount and timing of eventual monetary recoveries cannot be predicted at this time.”

Related: Sam Bankman-Fried’s bail conditions still too lenient, says judge

Bankman-Fried is facing 12 charges relating to conspiracy, wire and securities fraud in connection to the alleged mishandling of funds at FTX and its affiliates. He previously plead not guilty to eight similar original charges.

Ellison, Wang and Singh have pleaded guilty to charges similar to those brought against Bankman-Fried and are cooperating with investigations spearheaded by federal prosecutors.

The first known instance of an executive from FTX or Alameda assisting authorities came as Salame blew the whistle to Bahamian regulators of the potential fraud being perpetrated at FTX, which led them to shutter the exchange just two days later, on Nov. 11.

SBF’s lawyers signal need to push back October criminal trial

Sam Bankman-Fried’s lawyers said they’re still waiting on evidence from federal prosecutors and may need more time to prepare a defense.

Lawyers representing FTX founder Sam Bankman-Fried have flagged that it may be necessary to delay the criminal trial for the former crypto exchange executive to give him more time to prepare his defense.

In a March 8 letter to United States District Judge Lewis Kaplan, Bankman-Fried’s lawyers said they weren’t formally requesting a date change just yet, but it may be needed, as they’re still awaiting a “substantial portion” of evidence to be turned over to them and more charges had been laid against the FTX founder in late February.

The criminal trial is scheduled to begin on Oct. 2 and will focus on the fraud charges brought by the Department of Justice.

According to the letter, DOJ prosecutors are holding evidence from devices belonging to Caroline Ellison, the former CEO of FTX’s sister trading firm Alameda Research, and Zixiao “Gary” Wang, an FTX co-founder.

Both Ellison and Wang have pleaded guilty to fraud charges and are cooperating with the DOJ.

Bankman-Fried’s lawyers said they are also waiting for contents from “computers belonging to two other former FTX/Alameda employees.” They anticipate the production of the evidence from the devices “will be voluminous and critically important to the defense.”

Excerpt from the letter to Judge Kaplan requesting an amended trial schedule. Source: CourtListener

The letter also noted the superseded indictment against Bankman-Fried unsealed on Feb. 22 that bumped the number of charges from eight to 12, with new charges relating to conspiracy and fraud.

Bankman-Fried pleaded not guilty to the original eight charges brought against him in December.

One of Bankman-Fried’s lawyers, Christian Everdell, wrote in the letter:

“Depending on the volume of the additional discovery and the timing of the productions, it may be necessary to request an adjournment of the trial, currently scheduled to begin on October 2, 2023.”

“While we are not making such an application at this time, we wanted to note this issue for the Court now,” Everdell added.

Related: Lawyers’ picnic: FTX counsel and advisers rake in $34M in January

Bankman-Fried is currently released on a $250 million bond. He has been under house arrest in Palo Alto, California at his parent’s house and his online activities are restricted.

The schedule for the trial and bail conditions will be discussed at a hearing on Friday, March 10.

The FTX founder also faces separate fraud-related civil lawsuits from the Commodities Futures Trading Commission and the Securities Exchange Commission. Both have been delayed until after Bankman-Fried’s criminal trial.

SBF lawyers to pay for technical expert to aid judge on bail terms

The judge overseeing Sam Bankman-Fried’s fraud case wants some help navigating the world of encrypted messaging, privacy apps, and virtual private networks.

Attorneys working on behalf of former FTX CEO Sam Bankman-Fried have agreed to pay for a security expert to assist the federal judge overseeing his fraud case in navigating modern encryption technology to aid in possibly modifying Bankman-Fried’s bail terms.

Bankman-Fried lawyers Christian Everdell and Mark Cohen sent a letter to Judge Lewis Kaplan on Feb. 21 agreeing with his proposal for a technical professional to aid him.

According to the letter, “the defense has already begun researching and contacting possible experts and anticipates being able to propose one or more potential candidates to the court by the end of the week.”

Judge Kaplan suggested at a bail hearing last week following a tightening of bail terms when it was discovered that Bankman-Fried had been accessing the internet using a VPN (virtual private network).

A VPN obscures and encrypts a user’s internet traffic and is often used to change internet (IP) addresses, to add a layer of security to communications or to access censored content in autocratic regimes.

The judge has been trying to achieve a balance between letting Bankman-Fried access communication channels to prepare his defense and the potential misuse of messaging apps and privacy software.

Judge Kaplan temporarily banned Bankman-Fried from using a VPN or any encrypted messaging apps until his bail terms are settled.

Related: Sam Bankman-Fried may no longer be allowed to play League of Legends

The technical expert will help the judge navigate issues regarding encrypted messages, privacy-focused messaging apps and VPNs.

Bankman-Fried and his attorneys claim he used the VPN on two occasions, to watch the NFL playoffs on Jan. 29 and to watch the Super Bowl on Feb. 12.

Prosecutors have asked for strict bail terms limiting Bankman-Fried’s access to the internet and messaging platforms. They also alleged that VPN use “raised several potential concerns” regarding thepotential access of crypto platforms that have blocked United States users.

Voyager creditors serve SBF a subpoena to appear in court for a ‘remote deposition’

Bankman-Fried has only a few days to meet document requirements before his appearance in court next week.

Representatives for Voyager Digital’s unsecured creditors have requested that former FTX CEO Sam Bankman-Fried (SBF) and several top-level executives from FTX and Alameda Research provide documents and appear in court remotely next week for a deposition.

A court filing on Feb. 18 in the United States Bankruptcy Court for the Southern District of New York stated that Bankman-Fried has been served a “Subpoena to Testify at a Deposition in a Bankruptcy Case.”

A snippet of Voyager’s subpoena for Sam Bankman-Fried. Source: cases.stretto.com

It was served by the Official Committee for the Unsecured Creditors of Voyager Digital Holdings, a bankrupt crypto lending exchange, who stated that he must appear for the “remote deposition” on Feb. 23.

It also stated that Bankman-Fried produce all requested “documents and communications” no later than Feb. 20.

This comes after it was revealed in a Feb. 6 court filing that Voyager’s lawyers had served a subpoena to Bankman-Fried as well as Alameda CEO Caroline Ellison, FTX co-founder Gary Wang and FTX’s head of product Ramnic Arora.

All individuals were required to provide the requested information by Feb. 17.

Judge John Dorsey had previously authorised FTX debtors under bankruptcy court rules to issue subpoenas for information and documents from former FTX colleagues and family members of Bankman-Fried.

Related: Sam Bankman-Fried seeks to access FTX funds

Meanwhile, Bankman-Fried has been warned he could “conceivably” have his bail revoked after Judge Lewis Kaplan stated that there was “probable cause” to believe that he engaged in attempted witness tampering.

FTX’s Bankman-Fried could ‘conceivably’ get bail revoked, says judge

A federal judge said there was “probable cause” to believe that SBF engaged in activities that could land him in jail.

Former FTX CEO Sam Bankman-Fried could “conceivably” have his bail revoked after a federal judge said there was “probable cause” to believe he may have engaged in attempted witness tampering. 

In the Feb. 16 hearing on Bankman-Fried’s bail conditions, Judge Lewis Kaplan said there was “probable cause to believe that he [Bankman-Fried] has committed or attempted to commit a federal felony while on release, namely witness tampering” according to multiple reports.

Kaplan suggested that this could “conceivably” see the FTX founder sent back to jail until his trial date in October.

Kaplan noted however that the Feb. 16 hearing was not a bail revocation hearing, but added that it “could get there, conceivably.”

“Why am I being asked to turn him loose in this garden of electronic devices?” Kaplan reportedly said.

Law Professor Richard Painter echoed the sentiment in a Feb. 17 tweet, suggesting that witness tampering might not be a good idea given his current circumstances:

“Hey Crypto Bro: Witness tampering while out on bail is a great way to go right back to jail.”

On Feb. 15, prosecutors asked Judge Kaplan to further restrict Bankman-Fried’s device usage to a single monitored computer and cellphone in a letter.

Prosecutors had pointed to Bankman-Fried’s recent device usage as cause for concern, seeking to further restrict and monitor his usage “with limited exceptions.”

During the hearing, Judge Kaplan suggested that it was naive to believe that these restrictions would stop him from using the internet, given that Bankman-Fried is living with his two parents, who both have laptops and cellphones.

Prosecutor Nicholas Roos seemingly agreed, suggesting there may not be a “great solution,” which prompted Kaplan to imply that revoking Bankman-Fried’s bail could eliminate these risks, noting:

“There is a solution, but it’s not one anybody has proposed yet.”

Bankman-Fried’s lawyers however argued that they need him to be able to work on his defense, claiming: “We cannot go through these extensive financial records without him.”

Related: Judge allows release of identities of guarantors behind Sam Bankman-Fried’s bail

The former FTX CEO has been prohibited from using certain messaging apps as of Feb. 9 after he was found to have contacted potential witnesses. He was also temporarily banned from using a VPN after prosecutors accused him of using it on two occasions on Jan. 29 and Feb. 12.

The VPN ban was not extended in the Feb. 16 hearing.

Many from the crypto community have expressed disbelief that Bankman-Fried is yet to have his bail revoked under the circumstances.


FTX’s Bankman-Fried could ‘conceivably’ have bail revoked, says judge

A federal judge said there was “probable cause” to believe that SBF engaged in activities that could land him in jail until his trial in October.

Sam Bankman-Fried could “conceivably” have his bail revoked after a federal judge said there was “probable cause” to believe the former FTX CEO may have engaged in attempted witness tampering. 

During a Feb. 16 hearing on Bankman-Fried’s bail conditions, Judge Lewis Kaplan said there was “probable cause to believe that he [Bankman-Fried] has committed or attempted to commit a federal felony while on release, namely witness tampering,” according to multiple reports.

Kaplan suggested that this could “conceivably” see the FTX founder sent back to jail until his trial in October.

Kaplan noted however that the Feb. 16 hearing was not a bail revocation hearing, but added that it “could get there, conceivably.”

“Why am I being asked to turn him loose in this garden of electronic devices?” Kaplan reportedly said.

Law professor Richard Painter echoed the sentiment in a Feb. 17 tweet, suggesting that witness tampering might not be a good idea given his current circumstances:

“Hey Crypto Bro: Witness tampering while out on bail is a great way to go right back to jail.”

On Feb. 15, prosecutors asked Judge Kaplan to further restrict Bankman-Fried’s device usage to a single monitored computer and cellphone.

Prosecutors pointed to Bankman-Fried’s recent device usage as cause for concern, seeking to further restrict and monitor his usage “with limited exceptions.”

During the hearing, Judge Kaplan suggested that it was naive to believe that these restrictions would stop him from using the internet, given that Bankman-Fried is living with his two parents, who both have laptops and cellphones.

Prosecutor Nicholas Roos seemingly agreed, suggesting there may not be a “great solution,” which prompted Kaplan to imply that revoking Bankman-Fried’s bail could eliminate these risks, noting:

“There is a solution, but it’s not one anybody has proposed yet.”

Bankman-Fried’s lawyers, however, argued that they need him to be able to work on his defense, claiming: “We cannot go through these extensive financial records without him.”

Related: Judge allows release of identities of guarantors behind Sam Bankman-Fried’s bail

The former FTX CEO has been prohibited from using certain messaging apps since Feb. 9, after he was found to have contacted potential witnesses. He was also temporarily banned from using a VPN after prosecutors accused him of using it on two occasions, on Jan. 29 and Feb. 12.

The VPN ban was not extended at the Feb. 16 hearing.

Many both in and out of the crypto community have expressed disbelief that Bankman-Fried is yet to have his bail revoked under the circumstances.