MARIA: WELCOME BACK.
FTX EXECUTIVE RYAN SALEM TURNING
ON SAM A BANKMAN-FRIED, THE FORMER HIGH LEVEL EMPLOYEE
FORMER HIGH LEVEL EMPLOYEE
TIPPING A OFF BAY HAD OFFICIALS
ALLEGED IMPROPER PAYMENTS TO
ALAMEDA RESEARCH.
JOINING US NOW, GENERAL COUNSEL,
SUJIT RAHMAN.
TRM LABS IS A BLOCK CHAIN
COMPANY THAT DETECTS AND
INVESTIGATES CRYPTO RELATED
FRAUD AND FINANCIAL CRIME.
SUJIT, IT’S GOOD TO HAVE YOU
THIS MORNING.
WHAT’S YOUR REACTION TO ALL OF
THIS AND WHAT WE HEARD SO FAR.
>> VERY INTERESTING NEWS,
MARIA.
THANKS FOR HAVING HE ME.
I THINK WE’RE GOING TO BE SEEING
MORE INFORMATION COME OUT AS
TIME GOES ON.
THE INFORMATION YOU’RE TALKING
ABOUT BECAME PUBLIC YESTERDAY
THROUGH COURT FILINGS AND IT
APIERCE THAT -- APPEARS THAT
FOLKS THAT WERE WORKING WITH MR.
REGULATORS AND INVESTIGATORS IN
BAHAMAS AS THE FRAUD WAS
BECOMING PUBLIC SO CLEARLY THERE
WERE INVESTIGATIONS GOING ON IF
THE BAHAMAS.
THERE HAVE BEEN INVESTIGATIONSES
GOING ON HERE IN THE UNITED
STATES, CHARGES HAVE BEEN
BROUGHT.
AS WE SEE THE PARALLEL
INVESTIGATIONS PLAY OUT IT WILL
BE INTERESTING TO SEE HOW WHAT
MORE INFORMATION COMES OUT OVER
TIME.
MARIA: DO YOU THINK ANY OF
THESE INVESTORS WILL BE MADE
WHOLE?
WILL ANYBODY GET THEIR MONEY
BACK?
THE CHARGES FOUND AT THE END OF
THE INDICTMENT ALLEGE THAT SPF,
SAM BANKMAN-FRIED, AND HIS
CO-CONSPIRATORS ILLICITLY
CONTRIBUTED MILLIONS OF STOLEN
DOLLARS TO FEDERAL POLITICAL
CANDIDATES THROUGH ALAMEDA
RESEARCH IN ADVANCE OF THE 2022
ELECTIONS.
THIS MONEYS WAS STOLEN.
POLITICSES HAVE YET TO SAY
ANYTHING ABOUT -- POLITICIANS
HAVE YET TO SAY ANYTHING ABOUT
WHAT THEY’RE GOING TO DO NOW.
ALL THESE PEOPLE GOT MONEY FROM
SAM BANK BANKMAN-FRIED AND HIS
COLLEAGUES AND THAT MONEY WAS
STOLEN.
>> THAT’S ABSOLUTELY RIGHT,
MARIA.
WHAT’S REALLY INTERESTING, IT
HASN’T BEEN REPORTED MUCH YET, A
LOT OF THE MONEY CAME IN FROM
FOREIGN PEOPLE, FOREIGN SORT OF
RETAIL USERS AND SO WHAT WE’VE
ESSENTIALLY SEEN NOW IS THE
INFLUENCE OF FOREIGN MONEY ON
U.S. DOMESTIC POLITICAL
ELECTIONS.
SO I THINK IT IS GOING TO BE
VERY DIFFICULT FOR MUCH OF THIS
MONEY TO BE BROUGHT BACK.
THAT’S WHAT THE NEW MANAGEMENT
AT FTX WILL BE FOCUSED ON, WHAT
THE BANG RUN YOU SIGH COURT WILL
BE -- BANKRUPTCY COURT WILL BE
FOCUSED ON.
I THINK THERE WILL BE EFFORTS TO
CLAW BACK FUNDS.
WILL PEOPLE BE MADE WHOLE?
I THINK IT’S HIGHLY UNLIKELY, AT
LEAST 100%.
THERE WILL BE HARD EFFORTS MADE
TO TRY TO CLAW BACK THAT MONEY.
MARIA: EXACTLY.
SO FAR NONE OF THE POLITICIANS
SAID ANYTHING OUT WHAT STANDS
OUT TO YOU MOST ABOUT THIS CASE?
>> WHAT’S REALLY INTERESTING IS
WHAT YOU JUST TALKED ABOUT,
MARIA.
THE POLITICAL CONTRIBUTIONS,
THERE AREN’T A LOT OF DETAILS IN
THE INDICTMENT.
I THINK PART OF HAD THAT IS
BECAUSE THE GOVERNMENT IS
PROBABLY DEVELOPING ITS CASE,
PART OF IT IS THAT THE U.S. HAD
TO FILE CHARGES ESSENTIALLY TO
SATISFY THE EXTRADITION TREATY
WITH THE BAHAMAS SO THERE ARE
ALSO CERTAIN LIMITATIONS OF WHAT
THEY MIGHT HAVE ALLEGED IN THE
INDICTMENT.
I THINK WE’LL SEE MORE
INFORMATION COMING OUT OVER THE
NEXT FEW WEEKS AND MONTHS.
I THINK PEOPLE WILL BE VERY
INTERESTED TO KNOW WHO
MR. BANKMAN-FRIED’S CONSPIRATORS
WERE, THE INDICTMENT HERE IN THE
UNITED STATES TALKS ABOUT
CONSPIRATORS, CLEARLY THERE WERE
OTHER PEOPLE INVOLVED.
WHO HAD CRIMINAL KNOWLEDGE?
WHO HAD CRIMINAL INTENT?
AND WHERE WAS THE MONEY GOING?
I THINK THOSE ARE ALL UNANSWERED
QUESTIONS AT THIS MOMENT BUT
HOPEFULLY WE’LL GET MORE
TRANSPARENCY OVER TIME.
MARIA: SO DO YOU THINK THEY’LL
BE ABLE TO PROVE CRIMINAL
INTENT?
>> WELL, THAT’S WHAT A LOT OF
THE EVIDENCE WILL BE, RIGHT.
THE GOVERNMENT I’M SURE IS
COMBING THROUGH E-MAILS, TEXT MESSAGES, THERE MIGHT BE HUMAN
MESSAGES, THERE MIGHT BE HUMAN
COOP PRAY TORES -- COOP PRAY COO
HAVE COME IN.
IT’S BEEN AN ACTIVE
INVESTIGATION.
I THINK IT’S GOING TO KICK START
INTO HIGHER GEAR NOW.
MARIA: I MEAN, HOW HORRIBLE TO
BASICALLY GET IN FRONT OF HIS
ON-THE-RECORD, UNDER-OATH TEMPT.
LET’S FACE IT.
THE DEMOCRATS RUN THE FINANCIAL
SERVICES COMMITTEE AND HE WAS
SUPPOSED TO TESTIFY THIS WEEK
UNDER OATH.
WHAT PROSECUTOR WOULD NOT WANT
THEIR SUBJECT TO TESTIFY UNDER
OATH BUT THE DEMOCRATS WHO RUN
THE COMMITTEE MADE SURE HE WAS
ARRESTED BEFORE HE COULD
ACTUALLY GO UNDER OATH AND TALK
ABOUT ALL THAT MONEY THAT THEY
RECEIVED.
>> I WILL SAY, MARIA, IT’S A
LITTLE BIT UNUSUAL.
I THINK ANY PROSECUTOR WHO IS
ABOUT TO PROSECUTE A CASE, I WAS
A FORMER PROSECUTOR, SERVED IN
THE JUSTICE DEPARTMENT FOR MANY
YEARS.
TYPICALLY IF SOMEONE YOU’RE
INVESTIGATING IS ABOUT TO MAKE A
STATEMENT, PARTICULARLY A
STATEMENT UNDER OATH, YOU WANT
HIM TO MAKE THAT STATEMENT.
THAT CABINS HIM IN, TIES IN HIS
DEFENSE, COMMITS HIM TO A SORRY
AND MR. BANKMAN-FRIED HAS BEEN
TALKING SO MUCH, SOMETIMES IN A
SELF CONTRADICTORY KIND OF WAY,
YOU WOULD THINK THAT TESTIMONY
WOULD HAVE ULTIMATELY BEEN
HELPFUL TO PROSECUTORS.
I DON’T WANT TO SPECULATE, MARIA
P.
IT IS HARD TO SAY.
MR. BANKMAN-FRIED WAS IN THE
BAHAMAS AND AGAIN, I DON’T HAVE
INSIDE INFORMATION OBVIOUSLY BUT
WAS THERE A TIP THAT MAYBE HE
WAS LOOKING TO LEAVE THE
JURISDICTION TO A JURISDICTION
WHERE THE UNITED STATES DOESN’T
HAVE AN EXTRADITION TREATY.
WE DON’T KNOW.
IT’S HEART TO KNOW EXACTLY WHAT
WAS GOING ON IN THE MIND OF
PROSECUTORS.
MAYBE THEY DIDN’T WANT
MR. BANKMAN-FRIED OUT THERE IN
THE PENTHOUSE APARTMENT SORT OF
FREELY TALKING ABOUT WHAT HE
DID, WHEN EVERYONE KNOWS HE’S
UNDER INVESTIGATION.
SO WE’LL SEE.