The infamous "Pharma Bro" Martin Shkreli – the same person who had jacked up the price of the life-saving medicine Daraprim by over 4,000 percent – is now dispensing some much-needed advice to FTX's disgraced former CEO, Sam Bankman-Fried (SBF), on how to survive an American prison cell.
For those who might be unaware, Sam Bankman-Fried is currently out on a $250 million bond, secured via an equity stake in his parents' house. As part of this arrangement, SBF has surrendered his passport and will remain confined to the house of his parents as court proceedings continue. The former CEO of FTX will also be subject to electronic surveillance and will not be able to open any new line of credit.
Of course, Sam Bankman-Fried was arrested earlier in December by the Bahamian authorities on charges related to wire fraud, securities fraud, and money laundering filed by the United States Attorney for the Southern District of New York in a sealed indictment. The former CEO of FTX is also facing charges from the US SEC for violating securities law.
As a refresher, the crypto exchange FTX maintained an undisclosed synergetic relationship with Sam Bankman-Fried's crypto trading arm, Alameda Research, replete with commingled funds at the Silvergate bank, which allowed Alameda the convenience of borrowing FTX client funds after posting collateral in the form of illiquid tokens, including FTX's in-house FTT coin. This gig ended when Alameda's outsized exposure to the FTT token became public knowledge in early November, prompting Binance to dump its own FTT holdings, collapsing the token's price. Amid this fracas, the then-CEO of Alameda Research, Caroline Ellison, gave away the trading firm's floor price on the FTT token, inviting a veritable onslaught of speculative attacks. With Alameda's ability to pay off its liabilities impaired as its collateral of illiquid tokens quickly lost their inflated values, and with surging client withdrawals resulting in a bank run, FTX had no choice, in the end, to declare bankruptcy.
Martin Shrkeli gives prison survival tips to SBF
pic.twitter.com/PqeLlpPkf0— Breakout Point (@BreakoutPoint) December 27, 2022
This brings us to the crux of the matter. Martin Shkreli has now offered a fairly comprehensive primer on navigating the treacherous ins and outs of the US prison system. Before starting this "Prison 101" course, Shkreli notes that Sam Bankman-Fried (SBF) is not exactly a person who "fits into prison." Shkreli then goes on to recommend that SBF shave his head, try to deepen his voice to overcome his "effeminate" persona, attempt to pick up pointers on prison culture, listen to as much rap music as possible, and try to glean information on gangs and the tough neighborhoods in major US cities. On a more somber note, Shkreli notes that these guidelines could save SBF's life.
Of course, Shkreli is in a uniquely competent position to dispense this advice. After all, the former pharma executive spent around four years in prison for securities fraud only to win an early release in May 2022.
Meanwhile, as the drama around one of the biggest corporate frauds in US history unfolds in and out of court, we continue to get additional information. For instance, as per recent court documents, Sam Bankman-Fried apparently borrowed hundreds of millions of dollars from Alameda to purchase Robinhood shares. Interestingly, when Alameda later acquired a loan, it posted the same shares as collateral. Currently, SBF is fighting for legal custody over these shares, worth around $450 million. On the opposite side, FTX's current management, the defunct exchange's creditor Antigua, and the crypto lender BlockFi are also contesting the ownership of these Robinhood shares.
Do you think Sam Bankman-Fried will be able to survive the prison by following Martin Shkreli's advice?
The post Martin Shkreli Believes FTX’s Sam Bankman-Fried (SBF) Will Have a “Lot of Issues” in Prison as He Is an “Effeminate Guy” by Rohail Saleem appeared first on Wccftech.
source https://wccftech.com/martin-shkreli-believes-ftx-sam-bankman-fried-sbf-will-have-a-lot-of-issues-in-prison-as-he-is-an-effeminate-guy/