tonight the founder of collapse cryptocurrency exchange FTX Sam bankman freed remains in a jail
cell in behind the Bahamas as he waits for extradition to the United States
and the possibility of spending decades behind bars but what about his parents
I'm surprised so few are asking whether either of them could be in legal Jeopardy welcome back
everybody to altcoin daily we keep you updated on the entire cryptocurrency Market on a daily
basis Sam bankman freed the FTX founder has been indicted on eight criminal charges including fraud
and conspiracy next to be indicted Caroline Ellison CEO of Alameda and Sam bankman Freed's
ex-girlfriend you're gonna use very little math um use a lot of like uh Elementary School math
I think like every week or so uh something like weirder than the previous week would happen for
me A lot of it was just about sort of uh yeah readjusting my expectations and uh being open
to whatever happened trying to think of a good example of a trade where I've lost a ton of money
um Sam Trabuco the ex-ceo of Alameda before Caroline took over to be clear I'm uh so I
work for uh Alameda uh not FTX uh yeah they're both founded by Sam McAfee uh but yeah completely
different uh the the quite robust Chinese wall between the two uh and yeah so I have no access
to what uh the decision-making processes uh yeah Barbara freed and Joe bankman Sam bankman Freed's
loving parents also seemingly involved in the FTX organization prosecutor is involved in the
investigation of bankrupt cryptocurrency firm FTX and now looking into the parents
of former CEO Sam bankman freed it's over their alleged involvement in The Disappearance of the
equivalent to 12 billion dollars in customer funds seems pretty likely to me that people
like Caroline Ellison will be indicted over the FTX fraud the question is will spf's parents be
indicted I guess first of all we should get to know Barbara freed and Joe bankman a little bit
and you tell me do you think they will be indicted Freed's Father Joseph bankman works at his attacks
law professor at Stanford though he's announced he won't be teaching at the University next year
the father bankman worked for FTX for almost a year deeply involved in the business in its
early days he helped the company recruit its first lawyers last year he joined the
FTX staff in meetings on Capitol Hill he consulted FTX employees on Tax Matters
and also at a large focus on ftx's charitable operations his mom Barbara freed retired from
teaching at Stanford was the head of a political advocacy Network called mind the gap which she
helped start to support Democratic campaigns and causes her son was among the donors for the
network meanwhile bankman freed and his parents together bought real estate in the Bahamas worth
121 million dollars now bankman freed has maintained in an interview of the New York
Times that his parents quote weren't involved in any of the relevant parts of the business such as
the balances of risk management both parents have remained in the Bahamas and it has been
reported they have told their friends their son's legal bills will likely wipe them out
but putting aside their son's legal bills what about them particularly the dad could he be
charged with any crimes it's true sbf's parents working closely with the FTX organization has
been well documented for years not just recently when FTX blew up but for years ever since FTX
burst into the public eye for instance venture capitalist Katie Han went to Stanford with sbf's
Mom and Dad who taught her everything she knew she knew SPF as a baby and her parents
facilitated them investing together your story is really interesting to me and we were talking about
this a little bit backstage so Katie actually went to the Stanford law school and studied
with Sam's mother and father and father but they had actually never met in person until just now
well and for a couple decades for right yeah I ever met she knew Sam when he was a little kid
or Kevin O'Leary Mr Wonderful himself disclosing his involvement in FTX in 2021 and revealing one
of the initial things that attracted him to the FDX business was spf's parents compliance lawyers
and I have to disclose I'm a paid spokesperson to uh to FTX and a shareholder there too because we
mentioned them and big advocate for Sam because he has two parents that are compliance lawyers
if there's ever a place I could be that I'm not going to get in trouble it's going to be at FTX
by the way listen to Joe bankman listen to sbf's Father talking about how one of the big names that
he rubbed elbows with and actually taught at Stanford was Peter Thiel the founder of PayPal
here he's talking about how he helped Peter pay less taxes in business I've had people like Peter
Thiel I suppose probably the best known student I think I can reveal he once told me that uh
my class was his most valuable because uh he was able to put a lot of his PayPal stock uh
in an IRA Joe bankman was heavily involved in FTX at least that's the way it seems to
me but like let's be sure before we indict anybody let's ask the current FTX CEO in
charge of the bankruptcy cleanup John J Ray this was just a few days ago listen to John J
Ray and the Congress members talk about how SPF would bring his dad to meetings and definitely
hired his parents is there any evidence of his parents involvement in the operations
we're investigating that uh as well as any other you know players in the email Slack
you know there's a signals it's a it's billions of Records it's a very vibrant environment
um so I hear that you haven't discovered that I mean it would seem interesting that
uh that they didn't either give legal advice or business advice or parental advice Maybe well
well certainly clearly you know I get our first day papers we indicated that uh that Mr bankman
had given legal advice okay had he been an employee of FTX has been reported uh you
know I don't know if he actually had an employee status uh we certainly received payments from uh
the family did receive payments okay that sounds like employment to me you got a payment for okay
well I I raised that because on December 8 of 2021 I met with Sam bankman freed in my office
which I will note was just immediately before he came down to the hearing he was at least 15
minutes late and his father accompanied him uh in that meeting uh I asked and focused on what types
of Regulation he was under his engagement with regulators and how that affected FTX um people
aren't looking enough at sbf's parents and family listen to how financially literate Joe bankman is
this is him back in 2008 in front of Congress and the oversight committee talking about hedge fund
regulation and what the regulations should be to avoid things like fraud oh the foreshadowing
I've been asked to provide an overview of hedge fund taxation focusing on some of the benefits
of hedge fund managers my testimony however will also include uh private Equity Fund compensation
agreements and tax benefits since they're quite similar managers in both these fields receive a
management fee typically set at two percent of the amount under management they also receive
a profit's interest typically set at 20 percent of the fund's profits the profit's interest is
sometimes called the carried interest or simply a carry the management fee is taxed as ordinary
income the profit's interest is taxed as capital gain if and to the extent the fund itself is
recognizing capital gain if it's long-term capital gain that's at a tax rate of 15 percent as opposed
to the 35 percent maximum tax rate on ordinary income in addition Kerry is exempt from payroll
tax the way to think about it is to think of the choice are some sons and daughters face when
they decide upon a career if they're smart and ambitious they might become doctors or scientists
or lawyers these occupations and countless other occupations are going to produce income that's
taxed at ordinary income rates alternatively they could go into the fund industry and recognize some
and in some cases most of their income at capital gain rates that's simply unfair it violates a
common sense maximum that if you have two people earning the same amount you ought to tax them at
the same rate it's also inefficient it reduces the size of our economic Pie by distorting the career
choice our sons and daughters are going to make it's sometimes argued that hedge fund managers
ought to be and private Equity managers ought to be compared to entrepreneurs as
I mentioned my written testimony I don't think that comparison is apt hedge fund managers are
more similar I think to investment bankers or to Executives at public companies all of whom
recognize income at ordinary income rates spf's mother who's a Stanford law professor
her moral ambiguity molded Sam's responsibility deficit disorder watch this clip juxtaposed with
news of FTX collapse and fraud quote from Barbara freed the philosophy of personal
responsibility has ruined criminal justice and economic policy it's time to move past blame
foreign
so why is it that it seems so many people agree that at the very least out of sbf's
parents at the very least Joe bankman will be indicted like SPF was indicted and it's
because the indictments on SPF so many of them are conspiracy indictments that matters listen
to this former Bernie Madoff attorney tell you why the conspiracy charges matter well
what stands out most is that many of the charges are conspiracies you can have a
conspiracy with yourself you have a conspiracy of at least two people and what I suspect is
going to happen is there will be what we call a superseding indictment where there will be
other defendants charged who conspired with the main defendant here and there'll be additional
charges but the fact that there are numerous conspiracies uh leads me to believe that this
investigation is far from being open if your plan planning to attend Bitcoin conference
2023 let's hang out it's going to be epic use code altcoin daily 10 off this is the biggest
Bitcoin conference in the world use code altcoin daily 10 off so is spf's mother or father next in
the federal indictments on fraud and conspiracy we think there's a good chance and will continue
to keep you updated subscribe to the channel join the altcoin daily team see you tomorrow