Daily Archives: December 2, 2022, 11:51 am

SBF Missed FTX’s Risks – Bloomberg

… But it is also bad because FTX was going around misrepresenting how it managed risk. That stuff about a computer that saw everyone’s positions, knew the value of their collateral, and acted instantly to close any positions without a loss to FTX all seems to have been misleading. In fact, FTX apparently managed its most important market risk — Alameda’s huge leveraged position — more…

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Former FBI and DOJ Official Amelia Medina Returns to King & Spalding as Partner – King & Spalding

King & Spalding announced today that Amelia Medina, who recently served in senior roles at the Federal Bureau of Investigation and the U.S. Department of Justice, has rejoined the firm as a partner in its Special Matters and Government Investigations practice. Source: Former FBI and DOJ Official Amelia Medina Returns to King & Spalding as Partner – King & Spalding

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Ex-Theranos President Ramesh “Sunny” Balwani Faces 15 Years in Prison – Bloomberg

Ex-Theranos Inc. President Ramesh “Sunny” Balwani should spend 15 years in prison for defrauding investors and patients, prosecutors said. His lawyers countered he should be spared jail entirely. The recommendations were filed at federal court in San Jose, California, one week before Balwani’s sentencing by US District Judge Edward Davila. Last month, the judge handed ex-Theranos chief executive officer Elizabeth…

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Opinion | Blockchains, What Are They Good For? – The New York Times

A year ago Bitcoin and other cryptocurrencies were selling at record prices, with a combined market value of around $3 trillion; glossy ads featuring celebrities — most infamously Matt Damon’s “Fortune Favors the Brave” — filled the airwaves. Politicians, including, alas, the mayor of New York, raced to align themselves with what seemed to be the coming thing. Skeptics like…

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Sam Bankman-Fried ‘Wasn’t Even Trying’ to Manage Risk at FTX, He Says – WSJ

FTX founder Sam Bankman-Fried said he made no effort to manage risk at the digital-asset exchange that filed for bankruptcy in November, part of a blitz of public statements about major oversight failures at the company. “I wasn’t even trying, like, I wasn’t spending any time or effort trying to manage risk on FTX,” Mr. Bankman-Fried said in an interview…

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FTX Collapse Draws Senate Scrutiny as Lawmakers Push for Crypto Oversight – WSJ

Lawmakers should pass legislation that would impose strict rules on cryptocurrency exchanges, including rules to limit or prohibit the conflicts of interest that contributed to FTX’s collapse, Commodity Futures Trading Commission Chairman Rostin Behnam said Thursday. Speaking to members of the Senate Agriculture Committee, Mr. Behnam said he still supported a bill that would give his small agency authority to…

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SEC Enforcement Director and SDNY/EDNY Officials Address Enforcement Priorities | Corporate Defense and Disputes

Director Grewal stated that his mission is to restore public trust in the securities markets through proactive enforcement efforts…. *** Focusing on emerging risk areas.  Director Grewal mentioned three such areas: Private funds, where “opacity” is “concerning,” including as to fees and expenses, conflicts of interest, and fraud; Crypto, an area where he said recent events have borne out the…

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Crypto Industry a Disaster in Need of Rebranding, UK Lawmaker Says

The crypto industry is “a complete disaster” at the moment, said Godfrey John Bewicke-Copley, a member of the House of Lords, at an All-Party Parliamentary Group (APPG) meeting on Wednesday. In fact, he advised that the industry “ditch” the word “crypto” altogether. “Please, if we are going forward, let’s not call it crypto anymore. Please, don’t call it criminal money.…

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