Similarities but different. Both were fraud but different in nature. Madoff seems to have made up balance sheets out of whole cloth.
While SBF seemed to not account for anything while commingled FTX, Alameda, and customer money while drawing off huge sums for personal gain.
Problem is that even if they try him for the other stuff, there is a decent chance that those sentences end up being concurrent with the ones he is already currently serving with credit for the time he has already spent incarcerated by the time he is sentenced again.
I wish that when they talk about the years someone could be sentenced to they would also give the max sentence if convicted on everything and all concurrent. Like if he has 10 charges that are 0-10 years they would say 100 years but it is much more likely they only get 10 years, so tell us that as well.
He basically borrowed their deposits (which is illegal) and gambled/invested with it. Those gambles/investments likely worked out well enough that there’s enough money there to pay them all back, but it’s fraud to take that gamble with depositors money like that (and, as I understand, irrelevant to the legal question of fraud how the gambles panned out).
I think this is close to accurate accept, I expect recovery of client assets to be less than the deposits. But I honestly don’t know for sure.
If I understand this correctly at the time of collapse there were about USD16B in liabilities and about USD7B in assets giving a recovery ratio of about 44% (not sure if expenses were included in the liabilities). If you look at Claims Market or Xclaim the recovery ratio has improved to between 52% and 55% (after a massive drop earlier) in just about a year. I have no knowledge of how liabilities accrue interest, if at all, during bankruptcy proceedings but it does seem the assets are growing faster than the liabilities. Knowledge of the exact assets may also help assess the extent of the upside potential.
I don’t think they did. That’s why Alemeda failed.
he has right of appeal, which they said he would do.
the threat of the march trial is real and will not go away unless he pleads guilty to serious stuff for serious jail time in exchange for dropping appeals and just serving time.
but, the feds could feel good about the recent verdict surviving appeal in which case the sentencing will be huge (fraud sentences depend on dollar value taken - his is literally off the charts) and they might compel him to plead guilty to the march charges to avoid appeal on the march charges and set the floor on jail time overall (in case an appeal of these recent convictions works out).
or maybe he looks at march and the appeals as a chance to get released from the cell and wear a suit and see loved ones without a window. who knows what this guy thinks.
his “hail mary” taking the stand was like a rookie QB with a shitty O-line needing a hail mary. we all know they need it - can the qb drop back and throw one? or does he not have it and just get tackled or do something comical? in this case, he just got tackled for more loss.
There was ~8b misplaced, looks like they’ve recovered over 7b so far and I think they still have some illiquid assets that could be sold eventually
the courtroom sketches have made me laugh so hard
25 years
Is this set? Or can he still appeal?
I think 25 is a long time but fair, I’m sure he will spend his time in a minimum security prison with wifi
I wonder what his co-defendants will get
I don’t know if he can appeal. He also owes $11B, though where he’ll get that is anyone’s guess.
I think the upper limit was 100 years and prosecutors were requesting 40-50 IIRC, so 25 seems long but fair given the scope of his fraud and number of victims harmed.
Edit- no restitution
I guess I’d be okay with that if he served the whole thing, I think it’s the bare minimum given the gravity of his crimes.
25 seems a long time given his crimes/age in my opinion. I’d guessed 10-20.
Yeah I was thinking 10-15 based on Elizabeth holme’s recent sentencing
He’s gonna have to come up with another scam to scrape together $11B. They probably shouldn’t encourage him to start another company ever again
The amount of damage he did compared to, say, burglary is incredible. And he was not that young compared to other folks we toss in prison for decades. I think 25 years was short if anything.
I have actually not been following that closely, but since this is the internet I am offering my opinion anyhow.
Larry David?
