Disgraced crypto king faces legal expenses and SEC lawsuit. Sam Bankman-Fried, founder and head of the favored cryptocurrency trade FTX, has been arrested within the Bahamas on the behest of U.S. prosecutors, who’ve filed expenses in opposition to him. Bankman-Fried additionally faces expenses from the U.S. Securities and Change Fee (SEC).
Bankman-Fried’s arrest follows revelations that FTX lent buyer property to Alameda Analysis, which he additionally owned, and that FTX had filed for chapter.
“Earlier this night, Bahamian authorities arrested Samuel Bankman-Fried on the request of the US authorities, based mostly on a sealed indictment filed by the [Southern District of New York],” said U.S. legal professional Damian Williams in a Twitter assertion on Monday night time. “We anticipate to maneuver to unseal the indictment within the morning and may have extra to say at the moment.”
It is unclear exactly what expenses Bankman-Fried faces, however authorities have been taking a look at him for potential fraud expenses.
“The SEC has licensed separate expenses regarding his violations of securities legal guidelines, to be filed publicly tomorrow,” mentioned Gurbir Grewal, director of the SEC’s Division of Enforcement, in a Monday night time statement.
This morning, the SEC alleged that Bankman-Fried had been diverting buyer funds from FTX to Alameda Analysis “from the beginning,” and that he had additionally used buyer property to fund enterprise investments, actual property purchases, and even political donations.
Bankman-Fried was identified to be a significant donor to Democratic politicians (the second-largest within the 2022 election cycle, in accordance with Forbes). Bankman-Fried has additionally said that he secretly gave lots to Republicans, too, although this hasn’t been verified. “I have been their third-biggest Republican donor this yr as effectively,” but it surely’s “not typically identified,” as a result of “all my Republican donations have been darkish,” he mentioned in a latest YouTube interview.
Bankman-Fried “orchestrat[ed] a scheme to defraud fairness buyers in FTX Buying and selling Ltd. (FTX), the crypto buying and selling platform of which he was the CEO and co-founder,” alleged the SEC in a press launch, stating that he “commingled FTX prospects’ funds at Alameda to make undisclosed enterprise investments, lavish actual property purchases, and enormous political donations.”
Bankman-Fried has blamed incompetence for any crimes he could have dedicated. “I did not knowingly commit fraud,” Bankman-Fried instructed the BBC final weekend. “I did not need any of this to occur. I used to be definitely not practically as competent as I assumed I used to be.”
John Jay Ray III, who has been appointed CEO of FTX to supervise its chapter case, mentioned in court docket filings: “By no means in my profession have I seen such a whole failure of company controls and such a whole absence of reliable monetary data.”
Virginia Postrel presents a captivating historical past of how malls helped liberate girls—and ethical panic. From her Wall Road Journal essay:
City purchasing districts have been the place girls claimed the precise to dine outdoors their properties, stroll unescorted and take public transportation with out lack of repute. 1000’s of feminine gross sales clerks flowed out of shops within the evenings, when downtowns had beforehand been male territory. Department shops offered women’ rooms that gave girls locations to make use of the bathroom and refresh their hair and clothes. They supplied female-friendly tearooms. Straight and not directly, trendy purchasing enlarged girls’s public position.
In fact, this led to new ranges of contact between women and men and that freaked lots of people out:
Males generally known as “mashers” gathered in purchasing districts to ogle and chat up girls. Some have been not more than well-dressed flirts, violating Victorian norms in ways in which few right this moment would discover objectionable. Many contented themselves with what an outraged clubwoman termed “cruel glances.” Others adopted, catcalled and in some instances fondled girls as they strolled between shops, paused to look in home windows or waited for trams.
Postrel presents extra particulars in her publication:
Newspapers launched anti-masher crusades and outstanding girls demanded stricter regulation enforcement and stern punishment.…The campaign in opposition to mashers, whereas based mostly on an actual downside, had a powerful component of ethical panic.
The plain explanation for homelessness: not sufficient housing. Jerusalem Demsas with extra in The Atlantic:
Of their e-book, Homelessness Is a Housing Downside, the College of Washington professor Gregg Colburn and the info scientist Clayton Web page Aldern reveal that “the homelessness disaster in coastal cities can’t be defined by disproportionate ranges of drug use, psychological sickness, or poverty.” Reasonably, essentially the most related elements within the homelessness disaster are hire costs and emptiness charges.
Colburn and Aldern be aware that some city areas with very excessive charges of poverty (Detroit, Miami-Dade County, Philadelphia) have among the many lowest homelessness charges within the nation, and a few locations with comparatively low poverty charges (Santa Clara County, San Francisco, Boston) have comparatively excessive charges of homelessness. The identical sample holds for unemployment charges: “Homelessness is considerable,” the authors write, “solely in areas with strong labor markets and low charges of unemployment—booming coastal cities.”
[…] America has had populations of mentally ailing, drug-addicted, poor, and unemployed folks for the entire of its historical past, and Los Angeles has at all times been hotter than Duluth—and but the homelessness disaster we see in American cities right this moment dates solely to the Eighties. What modified that induced homelessness to blow up then? Once more, it is easy: lack of housing. The locations folks wanted to maneuver for good jobs stopped constructing the housing essential to accommodate financial progress.
And why do not many cities have sufficient housing? Largely as a result of laws have made it tough:
Few Republican-dominated states have needed to take care of extreme homelessness crises, primarily as a result of famous person cities are concentrated in Democratic states. Some blame profligate welfare applications for blue-city homelessness, claiming that persons are transferring from different states to make the most of coastal largesse. However the out there proof factors in the other way—in 2022, simply 17 % of homeless folks reported that they’d lived in San Francisco for lower than one yr, in accordance with metropolis officers. Gregg Colburn and Clayton Aldern discovered basically no relationship between locations with extra beneficiant welfare applications and charges of homelessness. And considerable different analysis signifies that social-welfare applications scale back homelessness. Think about, too, that some folks transfer to famous person cities in the hunt for gainful employment after which discover themselves unable to maintain up with the price of residing—not a phenomenon that may be blamed on welfare insurance policies.
However liberalism is largely accountable for the homelessness disaster: A contradiction on the core of liberal ideology has precluded Democratic politicians, who run many of the cities the place homelessness is most acute, from addressing the difficulty. Liberals have said preferences that housing needs to be inexpensive, notably for marginalized teams which have traditionally been shunted to the peripheries of the housing market. However native politicians in search of to guard the pursuits of incumbent owners spawned an online of laws, legal guidelines, and norms that has made blocking the event of latest housing pitifully easy.
Learn the remaining right here.
Bari Weiss has launched the latest installment of the Twitter Files, for which Twitter CEO Elon Musk has granted entry to inner paperwork to a small group of pleasant reporters. Now on installment 5, the “recordsdata” reveal extra about Twitter’s inner deliberation processes relating to issues like de-amplifying accounts, the Hunter Biden laptop computer story and Hunter Biden dick pics, misinformation experiences from regulation enforcement, and Donald Trump’s account suspension. Up to now, the dispatches have contained some attention-grabbing and notable data, and in addition loads of Musk-friendly spin and tradition conflict hyperbole. Another views…
David French’s tackle the Twitter Recordsdata: “The image that emerges is of an organization that merely couldn’t create and keep clear, coherent, and constant requirements to limit or handle allegedly dangerous speech on its platform. Furthermore, it is plain that Twitter’s moderation czars existed inside an ideological monoculture that made them much more tolerant towards the excesses of their very own allies. In different phrases, Twitter behaved precisely like private and non-private universities within the period when speech codes dominated the campus.”
Mike Masnick’s tackle the Twitter Recordsdata: “They’re all written by individuals who seem to have (1) no thought what they’re taking a look at (2) no real interest in speaking to anybody who does perceive it and (3) no concern about presenting them in an especially deceptive mild in an effort to push a story that’s not even remotely supported by what they’re sharing.”
Yasha Levine’s tackle the Twitter Recordsdata: “One of many saddest issues about them is that the folks on either side of this holographic media struggle actually are horrible, and but we’re imagined to get all emotionally concerned in it and choose one oligarchic faction—both TEAM LIB or TEAM MAGA—and root for it prefer it’s our lord and savior. All of the whereas, nothing about this drama may have any actual affect on anybody in America. It is simply feeding the political-entertainment advanced and the wealthy assholes and their hanger-ons that feed off of it.”
WARNING: GRAPHIC ⚠️ A cop in Florida shoots a person within the woods holding an axe. The officer ran as much as a person described as mentally ailing, tried no de-escalation, and shot him regardless of not being in peril. pic.twitter.com/jbWcHdoQsZ
— Fifty Shades of Whey (@davenewworld_2) December 12, 2022
• A Senate investigation means that “the Federal Bureau of Jail’s deeply flawed, backlogged system for investigating sexual assault fails to guard feminine inmates from rape whereas defending staff who commit sexual assault.”
• The Supreme Courtroom will not hear a case regarding California’s ban on flavored tobacco.
• Lawmakers have tucked a invoice known as the Judicial Safety and Privateness Act into the nationwide protection spending authorization invoice and it presents a number of First Modification considerations, says Chamber of Progress counsel Jess Miers:
We severely want to speak about this Judicial Safety and Privateness Act presently shoved into the NDAA. Let’s begin with the place we’re at WRT #Section230
Observe together with me on web page 2487: https://t.co/t3wxUQnXao
— Jess Miers ???? (@jess_miers) December 12, 2022
• How ChatGPT may affect the U.S. financial system.
• “State TikTok bans are a dumb efficiency and do not repair the precise underlying downside,” suggests Techdirt.