Beautiful Virgin Islands

Saturday, Sep 07, 2024

Even convicted scammer Anna Sorokin thinks Sam Bankman-Fried's defense is a lame attempt at saving himself

Even convicted scammer Anna Sorokin thinks Sam Bankman-Fried's defense is a lame attempt at saving himself

Anna Sorokin said Sam Bankman-Fried's apology tour is insincere garbage. His "I didn't know" defense is not a reasonable excuse for CEOs.

Sam Bankman-Fried, the once-billionaire founder of the cryptocurrency exchange FTX, told Andrew Ross Sorkin of The New York Times that he wasn't aware of the details that led to his company's implosion in November. 

"I didn't know exactly what was going on," Bankman-Fried, 30, told the Times on November 30. "Obviously, that's a pretty big mistake and oversight, that I wasn't more aware."

But convicted scammer Anna Sorokin told Insider that Bankman-Fried's apology press tour is insincere garbage.

"He's just trying to save himself," she said. 

Sorokin isn't the only one to balk at Bankman-Fried's explanation. Bankman-Fried's defense isn't acceptable for business leaders who should know the inner workings of their companies. However, it is an excuse that other villainized founders have tried and failed to use in the past, like Elizabeth Holmes, the founder and CEO of the now-defunct Theranos.

"Generally speaking, when you go into these types of cases, there's two types of defenses: 'I didn't know' and 'It wasn't me,'" Neama Rahmani, the president of the law firm West Coast Trial Lawyers and a former federal prosecutor, previously told The New York Times of Holmes' case. 

Once valued at $32 billion, FTX filed for bankruptcy and Bankman-Fried stepped down as CEO in November. Meanwhile, multiple billions are owed to creditors, and the Department of Justice and Securities and Exchange Commission are investigating FTX. 

Michael M. Santiago


'I didn't know' was his only defense


Sorkin started his interview by noting there are two views of what occurred at FTX. The first is that Bankman-Fried is a young founder who made a series of terrible decisions. The second is that he committed a Ponzi scheme that took advantage of the relationship between FTX and ​​Alameda Research, a trading firm that Bankman-Fried cofounded in 2017. Bankman-Fried denied the latter allegations, saying, "I did not ever try to commit fraud on anyone."

"I haven't been running Alameda. I haven't been thinking about its finances," he said. "I haven't been making those decisions. But as CEO of FTX, it was still my duty to make sure someone was doing diligence."


Holmes took a similar approach, but to no avail
Elizabeth Holmes was sentenced to more than 11 years in federal prison.


Holmes, who was found guilty on four counts of defrauding investors in January 2022, told the SEC "I don't know" more than 600 times during its questioning of her in 2019. In November, she was sentenced to more than 11 years in prison.

Holmes' efforts to blame others for Theranos' mistakes while highlighting her ignorance is a common tactic among fraud defendants, Rahmani told the Times. Holmes and her team "are going to do everything they can to distance themselves from that knowledge," he said.

While denial can be a plausible defense, jurors are often too savvy to accept the strategy. Jeffrey Cohen, an associate professor at Boston College Law School, previously told The Times that a better strategy is to appeal to jurors' humanity.

"What I would expect a defendant in a high-profile case to do is try to humanize themselves and make the jury see that they're not just a corporate CEO, but a person with the flaws that any person might have who's running a large corporation," Cohen said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Huawei Poised for Major AI Chip Unveil at Shenzhen Event
Nvidia’s AI chips are cheaper to rent in China than US
China ends tariffs on all goods exported to China from the poorest countries in the world it has diplomatic ties with, including 33 African nations
Blinken May Not Seek Another Term Due To Family Priorities
Labour Pushes for Special Tribunal Against Russia for Ukraine Invasion
Oil Companies to Contest Judicial Review of North Sea Projects
Ed Balls Urges Keir Starmer and Rachel Reeves to Address Winter Fuel Payments Controversy
British Army Major General Dismissed for Unwanted Advances
Campaigners Urge Bold Actions to Combat Rising Heart Disease in UK
UK Requires One Trillion Pounds Investment for Economic Growth
Plan to House Asylum Seekers at Former Dambusters Home Dropped
UK Drops Indecent Assault Charges Against Harvey Weinstein
Return of Brazilian Artworks to Bahia
UK Signs Landmark International AI Treaty
Demand for Justice After Death of Ugandan Runner Set on Fire
Ukraine's Major Government Reshuffle: Andrii Sybiha Appointed New Foreign Minister
North Korea Executes Officials Over Flood Response
French Woman Testifies in Landmark Rape Trial
Sicily Yacht Disaster: Fatal Asphyxiation Claimed More Lives
Michel Barnier Appointed as Prime Minister of France
The art technique of Grandma Mei Ling, age 82
Mongolia Refuses to Arrest Putin Despite ICC Warrant
UK State Pension to Increase by Over £400 Annually
Amazon Announces 10% Pay Increase for UK Workers
Grenfell Tower Fire Inquiry Demands Swift Justice
French Police Clear Migrant Camp Near Calais
New Law Proposes Jail Time for Covering Up Sewage Dumping in England and Wales
John Swinney's Government Programme Faces Criticism in Scotland
France Pilots Mobile Phone Ban in Schools
Priti Patel Eliminated in First Round of Tory Leadership Race
And Justice for ALL: Elon Musk threatens to go after Brazilian government assets
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
US Charges Hamas Leaders With Terrorism Over October 7 Attack on Israel
Russian Missile Strike Kills 49 in Poltava, Ukraine
Major Cabinet Resignations in Ukraine
Tory Leadership Candidates Criticize Rivals' Promises to Leave ECHR
Campaigners Propose Pay-Per-Mile Charge for UK Electric Cars
Labour Urged to Shift Asylum Policy Rhetoric
Hossein Shamkhani: The Rise of an Oil Tycoon
Putin Defies ICC Arrest Warrant with Mongolia Visit
Frenchman On Trial for Decade-long Abuse of Drugged Wife
The British bus driver explains to usual suspects that they cannot travel without a ticket. Education is important.
Irish Police Arrest Enoch Burke, the teacher who refuses to endorse and affirm transgender ideology
US Soldier Attacked in Turkey
Switzerland Urged to Reconsider Its 500-Year Neutrality
AfD's Historic Victory in Thuringia State Election, Germany
British Woman Sets Record for Fastest Lake Geneva Swim
Rising Influence of AfD Highlights Growing East-West Divide in Germany
Spanish Police Arrest Three for Ibiza Luxury Home Robberies
AfD Secures Historic Victory in East German State Elections
×