Martin Shkreli thinks FTX’s Sam Bankman-Fried (SBF) will get “a lot of trouble” in prison because he’s a “sissy man”

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Notorious “pharma pro” Martin Shkreli — the same guy who jacked up the price of the life-saving drug Daraprim by more than 4,000 percent — is now offering some much-needed advice to former FTX CEO Sam Bankman-Fred (SBF) on how to survive the pandemic. American prison cell.

For those who may be unaware, Sam Bankman-Fried is now in a $250 million bond situation, secured by an equity interest in his parents’ home. As part of this arrangement, the SBF has turned over his passport and will remain confined to his parents’ home as court proceedings continue. The former FTX CEO will also be subject to electronic monitoring and will not be able to open any new line of credit.

Of course, Sam Bankman-Fried was arrested earlier in December by Bahamas authorities on charges of wire fraud, securities fraud and money laundering that were presented by the United States Attorney for the Southern District of New York in a sealed indictment. The former FTX CEO is also facing charges from the US Securities and Exchange Commission for violating securities law.

As a refresher, cryptocurrency exchange FTX has maintained an undisclosed synergistic relationship with Sam Bankman-Fried’s cryptocurrency trading arm, Alameda Research, Silvergate Bank’s mixed-funds, allowing Alameda the convenience of borrowing FTX clients’ funds after collateral is posted in the form of tokens. illiquid, including FTX’s internal FTT token. That party came to an end when Alameda’s huge exposure to the FTT token became public in early November, prompting Binance to dump its FTT holdings, which sent the token’s price crashing. Amidst the scuffle, Alameda Research CEO Carolyn Ellison dumped the trading company’s lowest price on the FTT token, inviting a veritable onslaught of speculative attacks. With Alameda’s ability to repay its obligations weakening because its collateral of illiquid tokens quickly lost their inflated values, and with soaring customer withdrawals sending banks flooding in, FTX had no choice, in the end, to declare bankruptcy.

This brings us to the crux of the matter. Martin Shkreli has now provided a fairly comprehensive introductory handbook on navigating the ins and outs of the American prison system. Before starting this “Prison 101” course, Shkreli notes that Sam Bankman-Fred (SBF) isn’t exactly someone who “goes to jail.” Shkreli then goes on to recommend that the SBF shave his head, try to deepen his voice to overcome his “androgynous” persona, try to pick up clues on prison culture, listen to as much rap as possible, and try to gather information on gangs. and challenging neighborhoods in major American cities. On a more bleak note, Shkreli notes that these guidelines could save an SBF’s life.

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Of course, Shkreli is in a uniquely competent position to offer this advice. After all, the former pharmaceutical executive served nearly four years in prison for securities fraud only to win early release in May 2022.

Meanwhile, as the drama around one of the largest corporate frauds in US history unfolds both on and off the court, we keep getting additional information. For example, according to recent court documents, Sam Bankman-Fried appears to have borrowed hundreds of millions of dollars from Alameda to buy Robinhood stock. Interestingly, when Alameda later took out a loan, it registered the same shares as collateral. Currently, the SBF is fighting for legal custody of these shares, which are worth about $450 million. On the flip side, FTX’s current management, defunct Antigua Stock Exchange creditor, and crypto lender BlockFi are vying for ownership of those Robinhood shares.

Do you think Sam Bankman-Fried will be able to survive prison by following Martin Shkreli’s advice?

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