Tiffany also has a Substack column, which she doesn’t use as heavily as Twitter and Youtube. She does put some documents there. This one is especially informative. It’s a document Sammy wrote to her, outlining part of his defense strategy. It’s crystal clear, not fuzzy at all. Good old double-entry bookkeeping, familiar to an old bookkeeper, performed in good old gangland style. Two sets of books, one for the suckers and one for internal use.
More importantly he quotes the FTX exchange “terms of service”, the crap that nobody ever reads. It’s even more clear.
“E-MONEY IS NOT LEGAL TENDER. FTX TRADING IS NOT A DEPOSITORY INSTITUTION AND YOUR E-MONEY IS NOT A DEPOSIT OR INVESTMENT ACCOUNT. YOUR E-MONEY ACCOUNT IS NOT INSURED BY ANY PUBLIC OR PRIVATE DEPOSIT INSURANCE AGENCY.”
“YOU ACKNOWLEDGE AND AGREE THAT FTX TRADING AND ITS AFFILIATES MAY RELY ON ONE OR MORE THIRD PARTY INTERMEDIARIES FOR THE PURPOSES OF PROVIDING THE SERVICES… FTX TRADING SHALL NOT BE LIABLE FOR THE ACTS OR OMISSIONS OF ANY THIRD PARTY INTERMEDIARY, OR ANY LOSSES ARISING FROM THE FAULT OF ANY THIRD PARTY INTERMEDIARY.”
Third party, of course, was Alameda.
Ignoring the terms is rational for expenses in the $100 range like social media subscriptions or videogames. The investors and customers for a high-status betting parlor like FTX are dealing in millions. They have accountants. No excuse at all for not reading this wonderfully clear statement.
In the first fucking place, BAHAMAS. Honest people should see the first fucking PLACE and run away.
In the second fucking place, the terms say openly “WE ARE FRAUDULENT.” Doesn’t need an accountant to understand it. Only needs an honest customer who doesn’t think he can outswindle the swindlers.
I don’t know if the defense will get around to this point. They aren’t making any arguments at all yet, just trying to muddy the waters.
If I were on the jury, these two paragraphs would force me to say that Sammy was not trying to defraud honest people. He was giving dishonest people an opportunity to join a swindle.
Two choices: Prosecute ALL the customers along with Sammy, or release Sammy. Double-entry justice.
Polistra's Mill 