# Sam Bankman convicted 2023-11-02 (was living with parents, then jail). Is BTC and cryptocurrency busted too? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [December 23, 2022, 8:10pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019 "2022-12-23T20:10:03Z")\ **Posts on this page:** 20\ **Page:** 15
**Author:** ![Pleonast](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pleonast/32/1183_2.png) [@Pleonast](https://boards.straightdope.com/u/Pleonast)\ **Post date:** [November 3, 2023, 11:43am UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/281 "2023-11-03T11:43:59Z")
> [@Jasmine](#): > > When cryptocurrency first reared its ugly head and somehow became part of our world, it raised all kinds of red flags in my head. You’re not wrong about crypto, but this case is regular old-fashioned securities fraud. There’s nothing inherently crypto about the crime. ---
**Author:** ![chappachula](https://avatars.discourse-cdn.com/v4/letter/c/d2c977/32.png) [@chappachula](https://boards.straightdope.com/u/chappachula)\ **Post date:** [November 3, 2023, 12:01pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/282 "2023-11-03T12:01:43Z")
> [@Jasmine](#): > > When cryptocurrency first reared its ugly head My favorite line about crypto is from comedian Bill Maher. He said that he looked into bitcoin, but: " I don"t understand it. And neither do you". ---
**Author:** ![Jasmine](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jasmine/32/2964_2.png) [@Jasmine](https://boards.straightdope.com/u/Jasmine)\ **Post date:** [November 3, 2023, 12:07pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/283 "2023-11-03T12:07:41Z")
> [@chappachula](#): > > He said that he looked into bitcoin, but: " I don"t understand it. And neither do you". My favorite movie quote from the Mel Gibson movie, “Payback”, is: “If you don’t understand something, get rid of it.” ---
**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\ **Post date:** [November 3, 2023, 12:15pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/284 "2023-11-03T12:15:45Z")
> [@Riemann](#): > > Although perhaps she wasn’t found guilty of that aspect, I can’t remember? That’s right. She was _only_ found guilty on the investor fraud side. That was widely commented upon at the time (including in threads here). > [@Pleonast](#): > > this case is regular old-fashioned securities fraud. There’s nothing inherently crypto about the crime. Yeah, the crypto thing was more of the _tool_ that made it “easier” for SBF and his tribe to do this since it allowed them to tell investors _and themselves_ that the usual rules did not apply in the brave new world. In another time frame it would have been some other Big New Thing that nobody quite understood or that nobody could really go check out. ---
**Author:** ![puzzlegal](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/puzzlegal/32/3827_2.png) [@puzzlegal](https://boards.straightdope.com/u/puzzlegal)\ **Post date:** [November 3, 2023, 12:43pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/285 "2023-11-03T12:43:34Z")
> [@JRDelirious](#): > > > [@Riemann](#): > > > > Although perhaps she wasn’t found guilty of that aspect, I can’t remember? > > That’s right. She was _only_ found guilty on the investor fraud side. That was widely commented upon at the time (including in threads here). That still rankles me. I believe that she literally killed people, by providing inaccurate medical information on a large scale. Knowingly and intentionally. But she was only convicted of stealing money. Bankman-Freid stole money from speculators. I think she’s a lot more guilty. But he may have been convicted of worse. I’m surprised sentencing isn’t until March. Is that common? What’s the point of the wait? ---
**Author:** ![Yelnick\_McWawa](https://avatars.discourse-cdn.com/v4/letter/y/839c29/32.png) [@Yelnick\_McWawa](https://boards.straightdope.com/u/Yelnick_McWawa)\ **Post date:** [November 3, 2023, 12:53pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/286 "2023-11-03T12:53:16Z")
What’s the point of sentencing in five months? Sam is obviously going spend time in prison. Why not start his sentence immediately (thereby eliminating the chance of fleeing)? (I also recall former governor Rod Blagojevich was free on bail for several months between his conviction and sentencing) ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [November 3, 2023, 1:45pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/287 "2023-11-03T13:45:54Z")
> [@Yelnick\_McWawa](#): > > What’s the point of sentencing in five months? Sam is obviously going spend time in prison. Why not start his sentence immediately (thereby eliminating the chance of fleeing)? Considering he already had his bail revoked and was sent to jail in August, I presume that he’ll continue to sit in jail until the sentencing as well. Of course, Elizabeth Holmes got caught buying a one way ticket out of the country between her conviction & sentencing, and they didn’t revoke her bail for that, so who knows? ---
**Author:** ![zimaane](https://avatars.discourse-cdn.com/v4/letter/z/a3d4f5/32.png) [@zimaane](https://boards.straightdope.com/u/zimaane)\ **Post date:** [November 3, 2023, 2:45pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/288 "2023-11-03T14:45:43Z")
IANAL but I think the prosecution and defense now prepare arguments about how long they think the sentence should be and present them to the judge. The judge then weighs the arguments and issues the final sentence. NB The judge doesn’t have to split the difference, he could go lower than the defense wants, or more than prosecution asks for. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [November 3, 2023, 2:53pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/289 "2023-11-03T14:53:10Z")
There’s also a potential trial on some other counts which may complicate things. ---
**Author:** ![gnoitall](https://avatars.discourse-cdn.com/v4/letter/g/bb73d2/32.png) [@gnoitall](https://boards.straightdope.com/u/gnoitall)\ **Post date:** [November 3, 2023, 3:07pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/290 "2023-11-03T15:07:00Z")
> [@zimaane](#): > > NB The judge doesn’t have to split the difference, he could go lower than the defense wants, or more than prosecution asks for. And the judge’s own experience of the trial and the defendant’s behavior can obviously factor into it. So unless the defense can come up with a home run mitigation story, SBF is going away for a long time. ---
**Author:** ![Jackmannii](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jackmannii/32/311_2.png) [@Jackmannii](https://boards.straightdope.com/u/Jackmannii)\ **Post date:** [November 3, 2023, 3:19pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/291 "2023-11-03T15:19:50Z")
> [@Yelnick\_McWawa](#): > > What’s the point of sentencing in five months? Sam is obviously going spend time in prison. Why not start his sentence immediately (thereby eliminating the chance of fleeing)? (I also recall former governor Rod Blagojevich was free on bail for several months between his conviction and sentencing) Is it possible that more time is needed to convince BF to cough up what remains of the stolen dough to mitigate his prison sentence? ---
**Author:** ![gnoitall](https://avatars.discourse-cdn.com/v4/letter/g/bb73d2/32.png) [@gnoitall](https://boards.straightdope.com/u/gnoitall)\ **Post date:** [November 3, 2023, 4:08pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/292 "2023-11-03T16:08:48Z")
> [@Jackmannii](#): > > convince BF to cough up what remains of the stolen dough to mitigate his prison sentence I think the usual way to “convince” a convict is fines and restitution orders. Time is not needed. Negotiation is off the table. Compliance is enforced. ---
**Author:** ![PhillyGuy](https://avatars.discourse-cdn.com/v4/letter/p/ed655f/32.png) [@PhillyGuy](https://boards.straightdope.com/u/PhillyGuy)\ **Post date:** [November 3, 2023, 4:32pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/293 "2023-11-03T16:32:26Z")
> [@puzzlegal](#): > > That still rankles me. I believe that she literally killed people, by providing inaccurate medical information on a large scale. Knowingly and intentionally. But she was only convicted of stealing money. > > Bankman-Freid stole money from speculators. > > I think she’s a lot more guilty. Agree with you on this one, especially now that you reminded me about her dangerous defective product. Both the Theratos and SBF investors were trying to get rich. But with Theratos, they also were putting their money into what looked like a company that would grow the overall economy and improve health care. If the investors hadn’t put their money into Theratos, most would have instead invested in legitimate economically useful businesses. So even though I don’t like to see people going to prison, there’s legitimate justification for my tax dollars going to deter her behavior – even if she hasn’t caused deaths. In the Bitcoin case, the investors were trying to get rich by investing in an economically useless activity that causes global warming (through mining electricity use). If SBF has been acquitted, the message then would have been that cryptocurrency investors can be defrauded at will, and people would hopefully be more likely to invest in something less harmful to society, and maybe actually useful. As for prison, I don’t see benefit in my tax dollars being used to deter crypto fraud. Do I think it practical for the government for protect investors in useful companies (Moderna?) while leaving investors in harmful ones (Philip Morris?) to get what they deserve? No. But if SBF escapes from prison tonight (without harming others), and makes a clean getaway – fine with me. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 3, 2023, 4:35pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/294 "2023-11-03T16:35:32Z")
Article in Wired which responds to the question asked a year ago in the OP: it’s not crypto, it’s fraud. But unless governments regulate crypto more, there will be more frauds. > **[‘Party Time!’ Crypto Land Celebrates as Sam Bankman-Fried Is Found Guilty](https://www.wired.com/story/sam-bankman-fried-guilty-crypto-industry-reaction/)** > > Among crypto stalwarts and FTX customers, the conviction of Sam Bankman-Fried is cause for celebration. It’s also a warning. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 3, 2023, 4:38pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/295 "2023-11-03T16:38:17Z")
> [@hajario](#): > > There’s also a potential trial on some other counts which may complicate things. Which in turn depends on a court fight in the Bahamas about the scope of the extradition order. Some of the charges which have not yet been tried in the US were added after extradition, and SBF is arguing that they exceed what was authorised by the Bahamanian extradition order. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 3, 2023, 4:46pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/296 "2023-11-03T16:46:08Z")
> [@zimaane](#): > > IANAL but I think the prosecution and defense now prepare arguments about how long they think the sentence should be and present them to the judge. The judge then weighs the arguments and issues the final sentence. This is something I’ve wondered about before, the lengthy pause between conviction and sentencing in the US court system. Yes, counsel now have to prepare sentencing submissions, but I don’t understand why that takes four months to do. Same thing happened with Holmes and some other high profile cases. ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [November 3, 2023, 4:55pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/297 "2023-11-03T16:55:24Z")
Could it simply be the judge’s calendar is full until March? ---
**Author:** ![TroutMan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/troutman/32/6721_2.png) [@TroutMan](https://boards.straightdope.com/u/TroutMan)\ **Post date:** [November 3, 2023, 4:56pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/298 "2023-11-03T16:56:22Z")
> [@Northern\_Piper](#): > > it’s not crypto, it’s fraud. But unless governments regulate crypto more, there will be more frauds. That’s an important addition to the idea that this was about old-fashioned fraud. While true, the crypto environment and lack of regulation made it easier to commit. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 3, 2023, 4:57pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/299 "2023-11-03T16:57:27Z")
> [@muldoonthief](#): > > Could it simply be the judge’s calendar is full until March? Maybe. But it also happened with Holmes and her boyfriend. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 3, 2023, 5:13pm UTC](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019/300 "2023-11-03T17:13:03Z")
And Steve Bannon - convicted July 2022, sentenced October 2022, for a very straightforward matter: failure to obey a congressional subpoena. So it seems to be a thing? [https://www.justice.gov/usao-dc/pr/stephen-k-bannon-sentenced-four-months-prison-two-counts-contempt-congress#:~:text=WASHINGTON%20–%20Stephen%20K.,of%20the%20United%20States%20Capitol](https://www.justice.gov/usao-dc/pr/stephen-k-bannon-sentenced-four-months-prison-two-counts-contempt-congress#:~:text=WASHINGTON%20%E2%80%93%20Stephen%20K.,of%20the%20United%20States%20Capitol). [Previous page](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019.md?page=14) [Next page](https://boards.straightdope.com/t/sam-bankman-convicted-2023-11-02-was-living-with-parents-then-jail-is-btc-and-cryptocurrency-busted-too/977019.md?page=16)