Sam Bankman-Fried’s criminal case over the collapse of his FTX cryptocurrency exchange has been reassigned to a Clinton judge recently known for handling defamation lawsuits against former U.S. President Donald Trump and a sexual abuse lawsuit against Britain’s Prince Andrew.
The judge, Lewis Kaplan, also let the absurdly, bizarrely ridiculous e. jean Carroll’s defamation rape case move forward. Carroll made rape accusations against Donald Trump that defied credulity, and when he let her have it, she said he was defaming her. Meanwhile, she defamed him with a rape accusation that no one believed.
It should be interesting to see how even-handed the judge is.
I’M NOT A CRIMINAL COULD BE A BOOK SOON
The U.S. Department of Justice accused Bankman-Fried of causing billions of dollars of losses related to FTX, once the second-largest cryptocurrency exchange, including by using customer funds to support his Alameda Research crypto trading platform.
Bankman-Fried has acknowledged risk-management failures at FTX but said he does not believe he is criminally liable for what prosecutors called a “fraud of epic proportions.”
Michael Lewis, the author of “The Big Short” and “Moneyball,” met with SBF for hours recently. If there is a profit for SBF, it needs to go to SBF’s victims.
SBF’s parents could be liable for millions in civil suits.
Bankman-Fried’s parents live in California, which means California law probably applies in collection efforts by FTX or its creditors. California has perhaps the most comprehensively-drafted and creditor-friendly judgment enforcement laws in the United States, if not the entire world.
But it gets worse.
The pain arrives by way of a civil cause of action known as “civil theft”. Basically, California Criminal Code § 496(a) provides that a person who knowingly receives stolen property is guilty of a crime. IT ALSO SAYS § 496(c) goes on to say that any person who has been injured by the theft “may bring an action for three times the amount of actual damages, if any, sustained by the plaintiff, costs of suit, and reasonable attorney’s fees.”
They might have received benefits from FTX or Almeda.
There have been suggestions in the media, for instance, that Bankman-Fried’s parents received the title to a $16.4 million house in the Bahamas that was supposedly meant to house FTX staff and that Sam’s father, Joseph Bankman, “received payments from FTX and was heavily involved in the doomed platform’s operations,” according to at least one article. It may not be true, but if it is, they’re cooked.