Alright, guys. We got breaking news today.
We've got Sam Bankman-Fried entering a plea in the FTX fraud case.
Will we see a plea deal?
Will we see him plead guilty to try to get off some other charges?
Well, that's not all we're going to be talking about today.
We're going to be talking about more about this epic fraud and how it affects you.
Let's get it!
Welcome to BitBoy Crypto!
My name is Ben.
Today, we're going to be taking a look at Sam Bankman-Fried.
But we're going to be taking a look at a conspiracy that's not really conspiracy
involving North Dimension.
You're going to find out what that means here in just a little bit.
We're also going to be taking a look at Silvergate Bank's involvement
in this very sketchy stuff.
So let's start here.
First, we got Sam Bankman-Fried to enter plea deal in FTX fraud case.
Sam Bankman-Fried is expected to enter a plea deal in the next week
to criminal charges he defrauded investors and looted billions of dollars in customer funds.
We all know what he's doing, what he did.
It's January 3, 2023. Be on the lookout for that.
Also, guys, if you like these flashy whiteboard videos,
I'm sure enjoying them,
make sure to check out DTEN.
We got a link down below for these digital whiteboards.
They're really sweet.
They sponsored us and they actually gave us these whiteboard.
We love them. We think you'll love them, too.
Alright. So let's check out this video clip right here from Fox Business.
Welcome back!
New details on the fallout of cryptocurrency exchange FTX,
officials suggesting that former CEO Sam Bankman-Fried (SBF)
transferred assets to the Bahamas government for protection after filing for bankruptcy
and may have done so at their request,
the Bahamian government.
Joining me right now is criminal defense attorney
and Northwestern adjunct law professor Andrew Stoltmann.
Andrew, walk us through this case.
What criminal charges could Bankman-Fried face if guilty?
And why transfer those assets to the Bahamas government?
Well, I don't think there's any question we are going to see criminal fraud charges,
specifically, wire fraud charges.
SBF violated the most sacrosanct rule in the securities industry.
He co-mingled client funds.
And worse yet, the new account agreement with customers says
he wouldn't do that.
It's very clear.
He has violated the law.
This guy's going to jail for a long time.
Now, I've been hearing rumors of a larger conspiracy we might get to at some point,
but, for right now, we know SBF has nailed on all this stuff, no question about it.
Now, if you listen to what they said there, they talked about the Bahamian government.
And we've been telling you that the Bahamian government is super corrupt.
They actually had the chairman of their Empower party made a press conference
about me saying that I'm racist because I said the Bahamian government is corrupt.
We love the Bahamian people,
but this government is corrupt as all get-out.
You just heard they were moving assets around.
Moving assets around is something they did quite frequently.
As you can see here,
check this out,
Sam Bankman-Fried borrowed $546 million from his hedge fund Alameda
to buy a Robinhood stake.
Now, we know that he also tried to sell this Robinhood stake behind closed doors.
We know this via leaked text messages.
So that begs the question,
where are these Robinhood shares?
Well, they're in a separate LLC from the bankruptcy.
So I want you guys to keep track here.
We've got $300 million to $1 billion worth of real estate in the Bahamas
that we personally, BitBoy Crypto, have filed a lawsuit against
and we're trying to get those assets back in FTX users hands
because they were embezzled funds.
No. 2, you've got $546 million in another LLC that's not in this bankruptcy.
No. 3, we know John Ray, the bankruptcy lawyer of FTX,
well, guess what?
He has actually discovered an extra billion dollars floating around!
If you're keeping score, that's potentially $2.5 billion.
Is this really an insolvency hole?
Or is this a case of hidden money?
That's the question we'll have to get to.
So let's check this out here.
You have,
this little-known firm with a weird website was central
to the misappropriation of FTX customers.
This is called North Dimension.
Among the 130 or so companies in Sam Bankman-Fried's sprawling crypto empire,
North Dimension Inc. assumed a low profile.
Unlike FTX, its name wasn't splashed on billboards or sporting arenas,
and its business wasn't promoted by celebrities.
Here's the website.
I don't know if you can see it.
Hosted on Squarespace.
Let's check out what a great website this is.
Let's see.
They've got a home page.
We're on the home page.
Let's check out the about page.
About us.
And it goes right back to the home page.
So this is the only thing it says on the website.
[chuckles]
"Services"
"North Dimension Inc is a financial services company.
We bring decades of experience from Wall Street and Silicon Valley
to provide mature and stable fund management,"
just like FTX,
"liquidity, and payment processing services.
We bring the sophistication we have all come to expect
from mainstream financial institutions in the realm of cryptocurrencies."
Now, I want to show you that to show you what a joke of a website this is.
Let's go back to the article here.
North Dimension had a crucial role in the FTX mess.
North Dimension was where FTX customers were told to wire money
if they wanted to trade on its exchange,
according to a complaint filed Wednesday by the Securities and Exchange Commission.
But North Dimension Inc. also appears to have been a fake online electronics retailer.
It's a shell company! That's what it is.
And who is famous for shell companies?
That's right.
None other than our friend Dan Friedberg,
the general counsel.
this is the guy that basically is responsible for the whole entire thing.
He's the architect. He built all this.
He built all these shell companies.
He allowed Gary Wang to build back into Alameda into FTX.
He is from the Ultimate Bet scandal, the biggest poker scam in all time.
$40 million, they rigged it to where they could see the cards.
So he also had a big role in this as well, as well as Moonstone Bank,
we'll look at in a second.
The SEC complaint against former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang
said money wired to North Dimension by FTX clients for their own use
wound up funding Alameda's trading activities and Bankman-Fried's other ventures instead.
Bankman-Fried had directed FTX to have customers send funds--
think about this.
SBF directed FTX to send customer funds to North Dimension
in an effort to hide the fact
that the funds were being sent to an account controlled by Alameda.
The lengths that they went to to hide these customer funds,
to say this is criminal is understatement of the year.
So let's move on here.
We've got this.
FTX customers sending money North Dimension likely wired it through Silvergate Bank,
the San Diego institution that is one of the largest providing financial services
to the crypto industry.
And let me tell you, the more we find out about Silvergate,
the more disgusting it gets.
And they turned me down for an account.
So there you go.
North Dimension Inc. held two bank accounts at Silvergate.
But that's not the only bank involved in this, guys.
A tiny bank in Washington with crypto entanglements add to the FTX mystery.
As reported by PYMNTS,
one of the more surprising assets to come to light during FTX's bankruptcy
is a small ownership stake, through Alameda Research---
the sister trading arm of FTX--
in a tiny, 135-year-old bank
with three employees and a single branch in rural Washington state
that was, pre-acquisition, once called Farmington State Bank.
And if you guys like how we dig into all this and we give you guys more information
than other channels are doing,
make sure to hit that like button and go and subscribe to the channel.
We're going to be bringing you guys a lot more of these videos.
Now, the bank goes by the moniker "Moonstone Bank"
and conducts business meant to "usher in the new era of technology banking."
That's a far cry from its historical focus on agricultural loans.
A company called FBH Corporation acquired Farmington State Bank
and began to embrace an innovative startup business model,
with the goal to serve new customers
such as digital assets and hemp/cannabis.
The more we dig into this hemp/cannabis,
the more you're going to see how shadow banking between the cannabis industry
and the crypto industry have merged.
In January, Alameda invested $11.5 million for a noncontrolling minority interest.
This investment was more than double the bank's worth of $5.7 million.
The bank's worth $5.7 million.
They put in $11.5 million for a noncontrolling stake.
I want you to think about that for a second.
The math doesn't add up.
The name changed to Moonstone after Alameda--
they couldn't hide anything.
They're so stupid.
Moonstone's owner, FBH, is in turn owned by French national Jean Chalopin.
Now, why is he maybe ringing a bell?
He's better known as the creator of Inspector Gadget!
How hilarious.
Chalopin has since left cartoons behind and turned his attention to the banking world,
moving to the Bahamas,
where he became the largest shareholder and chairman of Deltec Bank.
That's right. The FTX partner, the Tether partner,
every shady company in the history of crypto pretty much.
Under its new ownership, Moonstone quickly applied
and was approved to become a member of the Federal Reserve of San Francisco,
what a deep tale we weave here,
in the summer of 2021, a year after changing hands.
Chalopin's other bank, the one in the Bahamas, Deltec, is the main banking partner
for the widely used stablecoin Tether.
Alameda accounted for a third of all Tether minting
and was one of the company's largest trading partners.
The most pressing relationship to be seen in this is whether FTX's creditors
will be able to claw back the $11.5 million ownership stake in Moonstone
and what that clawback might mean
for the future of the fledgling Reserve Bank member.
Very interesting here when you break this down.
What do we have here?
A cluster F.
That's what they call it.
That's what the kids call it these days.
And I'll tell you this.
The more this scandal goes,
the more we start to realize where the money is.
We have to claw back the money.
And we have to fight the people who are hiding this.
And that also includes, yes, Moonstone Bank,
includes Silvergate,
includes Deltec,
yes, probably includes the Federal Reserve,
probably includes the SEC.
We're pulling at the yarn.
It's a lot to unravel.
We're not going to stop until we get to the middle.
That's all we got.
Be blessed.
BitBoy out.