Foreign: ER Sam Bakeman Freed to be released Yes, you're hearing me properly to be released on a 250 million dollar bail. he's moving back in with Mom and Dad FTX Founder: the now disgraced ex-ceo potentially fraudulent, most likely sociopathic was released on a 250 million dollar bill while he waits trial for eight Federal criminal charges related to alleged fraud at his collapsed crypto Empire Bakeman Freed was extradited from the Bahamas to Westchester County New York on Wednesday night after days of chaotic Court hearings. Basically, it was kind of like the Willy won't he what's going on? A lot of confusion in the court, but it all concluded with the fact that yes, with his FBI agent handlers, he went from the Bahamas and now he's actually kind of close to me. here.

in New York two of his top Executives Caroline Ellison and Gary Wing pleaded guilty Wednesday to various criminal charges related to fraud at FTX and are cooperating with the Fed federal government. Basically, they were the first people to snitch, so they'll probably get more of a I wouldn't want to use the term sweetheart deal, but probably closer to it. Caroline Ellison is cooperating with prosecutors after the collapse of FTX new legal docs reveal how she acted on behalf of Sam Bakeman Free. Now this is what I think is actually the most damning before: Sam Bateman Free was put into the Bahamas jail and arrested and all the extradition.

Before that, he did many interviews. He did a lot of tweeting, talking, and everything in between. And the whole time it was this kind of a guy who seemed to not really know what's going on. He's like oh, I don't remember the details I don't think we did that I don't think this.

The picture that Ms Ellison paints here is very, very different As you are about to find out: Ellison at Bakemanfreed's Direction caused Alameda to manipulate the price of Ftt by purchasing large quantities of Ftt at the open market to prop up its price. Now remember this is kind of strange because Sandbag Freed multiple times stated to the world no, no, no I don't have anything to do with Alameda yeah I'm an owner but I'm so busy with FDX I can't do anything with Alameda that's their whole thing and uh, this just honestly gets worse. On more than one occasion, Alameda and Allison have Beekman fridge Direction actively engaged in the training of Ftt with the goal of supporting the price of the token. For those of you who maybe don't know, Ftt is the native token 2 Ftx's exchange and it's also basically the funny money that they made out of thin air to kind of immorally justify them taking customer funds and trading them at Alameda from FTX they're like, look, we gave you all this Ftt collateral which was literally their own like Chuck E cheese coins On these occasions Alameda adjusted the trading parameters of its trading bots in order to support the price of Ftt.

On top of this, we also know that no matter how big things got at Ftx4, Alameda they never got Margin Call They had like free reign to do whatever the hell they wanted. This manipulative active was in furtherance of the defendant scheme because it allowed Allison and Alameda to engage in further borrowing while concealing Alameda's true risk exposure which Once Again Sam Bakeman free said I didn't even know the risk exposure was that high and basically he's kind of playing this role of like the quirky intellect who just like wasn't informed on the situation and I would absolutely call BS on this and so is Ellison And now that's what the prosecutors are saying Anyway, more specific to: Ellison and Gary Wang the people who seem to be not necessarily blowing the whistle, but the people who are cooperating with prosecutors. To get a stronger case I would assume Caroline Ellison The former CEO of Alameda pleads guilty to charges that carry up to 110 years in prison following FTX collapse. So will she get the 110? Probably not.

I Mean the fact that she's cooperating tells you that they have some sort of deal with her. If you want to read more about the specifics of this, make sure you just check out this article. But but she's not gonna get the 110, she's helping the prosecutors. If anything, when we find out her actual punishment, it'll probably make you and me extremely extremely angry because was she doing things at the behest of Sam Bateman Free Yes.

But also she was doing things like she's no dummy herself. She knows what she was also doing. No. Sam Bakeman Freed and his parents didn't just shell out 250 million for bail.

Here's how it works. so this is one of the biggest things I Saw making its kind of rounds on the internet I was like wait I thought he only had a hundred thousand dollars? How to cut him up with 250 mil. In our court system, you don't actually have to come up with the Bell You just end up getting a bond which is typically like 10 of the price. But anyway, in his case, here's how he pulled it off.

Such large bail amounts don't necessarily have to be paid out, but they need to be secured in some way to provide assurance that a defendant won't violate its terms. In this case, Bateman Freed's parents home in Palo Alto offers such a security along with types of collateral possessed by others who weren't named in the filing. So they put put his house up for bail basically the place where he is now living in the basement and then I Guess there were two other people who threw money up, but once again, they were not named. These amounts are often just numbers.

Sometimes defendants will sign Bonds in the amount of hundreds of thousands of dollars when everyone knows they don't have a penny to their name. usually not all the time. and I'm sure there's someone who knows far more about the legal system than I do, but usually you have to end up coming up with about 10 of the number that the court actually tells you. Alameda CEO Caroline Ellison and FTX co-founder Gary Wang The two people who are very much cooperating with the prosecutors um, each have a 250 000 Bond and obviously their deal is far far more favorable to them.

Now just to wrap this up and probably more important to people who might be on FTX or just really watching the situation, this kind of comes back to: Okay, who's gonna get what money and who has what claim to what money, especially if you're on FTX Should FTX users be viewed as creditor or asset owners? The answer could mean the difference between recovering funds or getting Short change. So this is very important. I Know it's getting a little bit into the world of boring legal jargon, but massively massively important. A group of FTX customers who have 1.6 billion with a B trapped on the bankrupt exchange want to be considered asset owners instead of unsecured creditors.

Lawyers plan to argue that the fund's still held by FTX are custody assets that are owned by the users and should be repaid faster. Otherwise, being viewed as an unsecured creditor would mean waiting longer and only getting a small fraction of their money back. So the best way I Understand this is in the first case, an asset owner. You're basically saying no, they were the custodian for it.

But give me my asset back. This is a digital asset. Give me it back if you had one Bitcoin I Want my one Bitcoin Back In the latter case, this is more of looking at the total value of everything going on and then they have to divvy that up and you most likely get very small percentage of your total value back. So that's the difference of being an unsecured creditor in a no bueno case, or in most likely a more positive case, being a true asset owner.

The best way I Can conclude all this discussion is when it comes to any form of crypto, self-custody is the only reasonable way to go. Yes, FTX at one point in time was a great place to get your crypto. It had very low transaction fees, but none of these things. Especially ever since the whole Terra Luna blow up and then 3ac and then Voyager and everything else.

At that point of getting burned by the hot oven way too many times, everyone should know self-custody is the only viable option. These yield products not worth it. Keeping your crypto on any exchange not worth it. Those small interest payments not worth it.

Self custody and I would actually even take it a step further and really express my opinion of cold wallets are probably where a majority of your crypto assets should be sitting. But overall, please, in a comment below, let me know your thoughts. We have Sam Bakeman freed out on bail. Not necessarily a free man, but he's hanging out in his parents basement.

We have Ellison and Wang essentially stabbing him in the back for lack of a better term, but they're cooperating with the enforcement, the prosecutors and that's why their deal is far, far better. But I Want your thoughts on all of this? Like is the dude gonna get epsteined? Is he gonna run away like I'm so curious to see how this goes and I would love your best thoughts Your best predictions from now until the story actually concludes. What are the biggest twists that you personally think are going to happen once again, let me know in a comment below.