Posts Tagged: Founder

Disgraced FTX founder Sam Bankman-Fried pleads not guilty to federal fraud charges

Sam Bankman-Fried, the disgraced founder and former CEO of crypto exchange FTX, has pleaded not guilty to federal wire fraud charges and other crimes. Bankman-Fried appeared before a Manhattan court on Tuesday, nearly two weeks after he was granted bail on a $ 250 million bond, and said he was innocent of charges laid against him by US prosecutors. 

In addition to a civil suit from the Securities and Exchange Commission, SBF faces a criminal indictment from the Justice Department. Prosecutors have accused Bankman-Fried of leading a multiyear scheme to defraud investors and customers of FTX. SBF faces a total of eight criminal charges, including multiple counts of wire fraud. He is also accused of attempting to commit commodities fraud, as well as breaking federal election laws by donating more than is legally allowed and in the names of other people.

Developing… 

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FTX founder Sam Bankman-Fried agrees to extradition to the US

When the Bahamas Attorney General’s office announced that it had arrested former FTX CEO Sam Bankman-Fried, it noted that the former FTX CEO was likely to be extradited at the request of the United States. Just over a week later, that prediction has come true: Bankman-Fried signed extradition papers on Tuesday afternoon.

According to an unsealed indictment, Bankman-Fried is facing 8 counts of conspiracy to commit wire fraud, commodities fraud, securities fraud, and more. Specifically, the SEC accuses the cryptocurrency founder of “orchestrating a massive, years-long fraud” for “his own personal benefit and to help grow his crypto empire.” The Department of Justice has accused him of attempting commodities and securities fraud, conspiring to defraud investors and breaking federal election laws for donating more to political groups than is legally allowed.

Bankman-Fried originally planned to fight extradition, but indicated on Monday that he would reverse course. Now, he will be returning to the US to face those charges, a decision that might be easier on him in the short term. When the former CEO was first arrested in the Bahamas, he was denied bail and deemed a flight risk. In the United States, it’s possible he could be released on bail.

Bankman-Fried has previously said that he “didn’t ever try to commit fraud,” and doesn’t believe he’s criminally liable for the fall of FTX. The New York Times reports that a defense lawyer representing Bankman-Fried in the Bahamas says that he’s returning to the US because he “wishes to put the customers right, and that is what has driven his decision.”

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

US prosecutors are reportedly investigating FTX founder Sam Bankman-Fried for fraud

US federal prosecutors could be building a fraud case against FTX founder and former CEO Sam Bankman-Fried. Bloomberg reports Justice Department officials met with the crypto exchange’s bankruptcy team this week to discuss documents investigators aim to obtain from the company.

The meeting included prosecutors from the Southern District of New York, Assistant US Attorney Roos, agents from the Federal Bureau of Investigation, and lawyers from FTX. Roos, notably, was involved in the prosecution of Nikola founder Trevor Milton, who was convicted of misleading investors earlier this year. According to Bloomberg, potential charges were not discussed at the meeting that occurred this week.

The Justice Department is “closely” examining whether FTX improperly transferred hundreds of millions of dollars around the time the company declared bankruptcy on November 11th. It’s also probing whether the exchange broke the law when it moved funds to sister company Alameda Research.

In his recent New York Times interview, Bankman-Fried denied knowingly misusing customer funds. “Clearly, I made a lot of mistakes. There are things I would give anything to be able to do over again,” he said. “I did not ever try to commit fraud on anyone.” He will testify before the House Committee on Financial Services next week, a panel that will also include testimony from FTX’s current CEO, John J. Ray III. Ray has accused Bankman-Fried of making “erratic and misleading public statements” about FTX.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Nikola founder Trevor Milton convicted on three charges of fraud

Trevor Milton, the founder and former executive chairman of Nikola, has been found guilty on three counts of fraud for misleading the electric vehicle company’s investors about its business and technology.

In total, he was found guilty on one count of securities fraud and two counts of wire fraud. He was acquitted on one charge of securities fraud. His sentencing has been scheduled for January 27th. He faces up to 20 years in prison.

Milton was indicted by a federal grand jury on the charges last year, with prosecutors citing numerous alleged lies, including many made on Twitter, in podcast interviews and other media appearances. Prosecutors alleged he had lied about “nearly all aspects of the business” in an effort to boost the stock of the EV maker.

The SEC began investigating the company in 2020, after Hindenburg Research publicly accused Nikola of staging an “elaborate ruse” to mislead the public about the status of its electric semi, Nikola One. While the company had published a video purporting to show the truck “cruising on a road at a high rate of speed,” Hindenburg said the truck had actually been “towed to the top of a hill on a remote stretch of road and simply filmed it rolling down the hill.” The company ultimately paid $ 125 million to settle civil charges with the SEC in 2021.

During the trial, Milton’s defense lawyer argued that the video was merely “special effects” and that “it’s certainly not a crime to use special effects.” But prosecutors raised several other false claims by Milton, who was extremely active on Twitter. According to The Times, prosecutors said Milton also lied about having “binding contracts with trucking companies” that in reality were cancelable reservations for vehicles. Prosecutors also cited Milton's claims about making “green hydrogen” when the company had not yet produced any.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Telegram founder confirms paid features are coming soon

Those unlockable Telegram features that showed up with the app's beta version in May will soon be available for paying users. Telegram founder Pavel Durov has confirmed that the app is launching a subscription plan called Telegram Premium sometime this month. While Durov didn't discuss the specific benefits that come with the plan, he said it will give paying users extra features, speed and resources, as well as first access to the app's latest offerings. 

Durov explained that a lot of people have been asking the service to raise the limits on its chats, media and file uploads. However, doing so for everyone would lead to massive traffic and server costs beyond what it could afford. Telegram apparently came to the conclusion that the only way it could give its "most demanding fans" more while keeping its existing features free is to offer those raised limits as a paid option. 

The service's founder has also assured users in his announcement that Telegram will still be releasing new free features despite having a paid tier. Further, even free users will be able to enjoy some of the Premium option's new futures, including being able to view larger-than-usual documents, media and stickers sent by paying members. A previous report by tech publication Beebom says Premium subscribers will have the capability to upload files up to 4GB in size and will enjoy up to twice a non-paying users' limits when it comes to the number of channels they can join, among other things. Beebom also says a Premium subscription will cost $ 5 a month, though we won't know for sure until the option launches.

Durov ended his announcement with:

"While our experiments with privacy-focused ads in public one-to-many channels have been more successful than we expected, I believe that Telegram should be funded primarily by its users, not advertisers. This way our users will always remain our main priority."

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Nothing founder teases company’s first Android smartphone

Carl Pei, founder of Nothing, has teased that the London-based consumer technology startup is working on its very first Android smartphone.
Android | Digital Trends

BitConnect founder indicted by Justice Department has disappeared

SEC officials do not know the whereabouts of Satish Kumbhani, the founder of crypto trading platform BitConnect, who was charged last week with defrauding investors of $ 2.4 billion in a Ponzi scheme. This puts the SEC in quite a bind, since they have to serve the 36-year old entrepreneur with his court papers. In a court filing from Monday, the SEC stated that they did not have an address for Kumbhani, an Indian citizen, and suspected that he likely fled to another country. 

The DOJ is charging Kumbhani with a number of offenses, including conspiracy to commit wire fraud, conspiracy to commit commodity price manipulation and conspiracy to commit international money laundering.

“Kumbhani’s location remains unknown, and the Commission remains unable to state when its efforts to locate him will be successful, if at all," wrote the SEC in its filing.

In order to buy some time, the SEC is asking the US District Court for the Southern District of New York for an extension of 90 days. Since BitConnect is an unincorporated entity and not a formal corporation, all court papers have to be served to Kumbhani himself.

First founded in 2016, BitConnect attracted a lot of attention on social media for its “Lending Program” which allowed users to lend their Bitcoin in exchange for a propriety Bitconnect cryptocoin. The program claimed it could guarantee returns by using investors’ money to trade on the volatility of the cryptocurrency markets." 

“Under this program, Kumbhani and his co-conspirators touted BitConnect’s purported proprietary technology, known as the 'BitConnect Trading Bot' and 'Volatility Software', as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors,” wrote the DOJ’s Office of Public Affairs in a press release.

After years of crypto existing in a legally murky universe, U.S. government officials are cracking down on cryptocurrency fraud and scams at an increasing rate. Last year, the DOJ launched a national cryptocurrency enforcement team to handle complex cryptocurrency investigations, and recently appointed veteran cybersecurity prosecutor Eun Young Choi as its director.

BitConnect is just one of many cryptocurrency schemes that law enforcement has pinned down in recent months. The founders of BitMex, a crypto derivatives exchange, plead guilty to skirting anti-laundering laws in the US and were ordered to pay $ 20 million in fines. Earlier this month, the DOJ arrested Ilya Lichtenstein and Heather Morgan, two entrepreneurs who allegedly attempted to launder more than 25,000 Bitcoins stolen from the 2016 Bitfinex hack.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Nikola founder resigns following SEC probe into electric truck business

Following a fraud accusation by a short firm and potential probe by the US Securities Exchange Commission (SEC), Nikola founder Trevor Milton is stepping down as executive chairman. “Nikola is truly in my blood and always will be, and the focus shoul…
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Fyre Festival founder arrested, charged with wire fraud

There has been one arrest following April's disastrous Fyre Festival event, as the Southern District of New York US Attorney's office announced the arrest of Fyre Media founder William McFarland. He's charged with wire fraud over allegedly lying to i…
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Atari founder Nolan Bushnell is making mobile games

Atari founder Nolan Bushnell has teamed up with a small Amsterdam studio to develop and publish new mobile games. Bushnell created the iconic Atari brand in 1972, and oversaw the release of classic systems such as the Atari 2600. He was ousted from t…
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Fossil Q Founder review

The day has arrived when a smartwatch no longer has to look like a second-class citizen next to a regular watch. The Fossil Q Founder may lack on the tech side, but it makes up for it in style and class. Here’s our review.

The post Fossil Q Founder review appeared first on Digital Trends.

Wearables–Digital Trends

Fossil’s big, bold Q Founder smartwatch is yours today for $295

Fossil has put the Q Founder, its first Android Wear smartwatch, on sale. The watch costs $ 295 in the U.S., and has a traditional style to it, along with comprehensive fitness tracking and other fun features.

The post Fossil's big, bold Q Founder smartwatch is yours today for $ 295 appeared first on Digital Trends.

Wearables»Digital Trends