So, shouldn't he be arrested and in prison, or at least detained? Why isn't he? He still seems to be free and sending messages to employees. Is it because they can't extradite him from the Bahamas? What is going on?
This incident made me lose faith in the justice system and I need an explanation. I understand it doesn't happen the same day but it has been a week now and... nothing.
The US government is in talks to extradite him, but he (allegedly) committed crimes in the Bahamas as well. There are legal proceedings going on now about who gets first crack at him. The Bahamas are keeping him from leaving the island so him fleeing isn't a major risk.
It seems extremely likely he will end up in prison for decades. But it takes a while to prove the crimes to the court. Heck, they brought in the CEO who cleaned up the wake of Enron to try to get people their money back and the first thing he did was write a long letter tot he court about how they would need more time just to understand where their bank accounts were and how much money was in them because everything was so messed up records wise. The prosecutors need to be able to tell the jury specifics they are still gathering.
December 2, 2001 – Enron files for bankruptcy
February 19, 2004 – Jeffrey Skilling surrenders to the FBI, released on $5 million bond
January 30, 2006 – Trial starts
May 25, 2006 – Jury returns verdict
October 23, 2006 – Skilling sentenced
December 13, 2006 – Request to remain free during appeal denied, prison sentence begins
Jailing to prevent him to disappear would make sense, but there is no urgency in the sense he likely can't lose another few billions next week.
No idea. I hope he survives long enough to stand trial because as I understand it, he is just one pawn in a much bigger game and some high profile officials stand to be embarrassed or possibly arrested assuming they are not untouchable. The pessimistic side of me does not expect any of that to occur but rather he falls victim to sleeping guards and broken cameras.
Here [1] is one theory being discussed in some circles but I would not expect anything to come of it.
[1] - https://youtu.be/Ktc2CXC7WJs?t=575 [video]
That said, I think it's probably better to have an air-tight case rather than risking some legal screwup on an ultra-complicated fraud case that would probably take weeks/months for an investigator to really begin to understand the full details of.
The Feds have probably already interviewed SBF and will make sure he does not flee. In the meantime, it’s much easier to let him dig his own grave. He’s already made numerous incrimating statements that simply would not have happened in a holding cell.
The Bahamas may also be planning to bring their own charges, though they are likely to let the US take him first.
After all, it's all a network of shell companies in banana republics, and maybe it was all in the small print ? Like this little gem in Coinbase terms, mentioning that your crypto assets are not really yours in case of bankruptcy and can be considered as assets used to pay debts ? (don't remember the exact wording, but that's the idea).
A better question is why people gave / put so much money on an exchange run by kids through a net of shell companies in banana republics ?
Why people are still putting so much money in Binance ? Tether ? If they disappear tomorrow with all the money - will any law be broken ? I'm not so sure actually - they don't even have official headquaters ! It's red flags everywhere, and yet, once it's over people will sure be angry about loosing all their money.
[ ] He's physically dangerous
[ ] He is likely to hide traces of his alleged crimes
[ ] He is likely to engage in witness tampering
[ ] He is likely to leave the country to a non-cooperating jurisdiction
[ ] He doesn't have powerful friends
A WSJ article suggested his Dad a tax law professor at Stanford was in tears at a restaurant in the Bahamas.
Justice is coming and his father knows it.
Nothing SBF does from now on will lessen his culpability, but perhaps his ongoing communications and actions might be used against him by those preparing the charges. All the better. He seems like a royal idiot.
(1)https://twitter.com/JagoeCapital/status/1592561227271929861