👩‍⚖️ Crypto Court Countdown

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👋 Friends, Rallie here. The newsletter making your day a little brighter by bringing you the latest in crypto, finance, and tech.

On the menu:

• 👩‍⚖️ Crypto Court Countdown

• 🗞️ Headlines That Hit

• 📈 Refresh: Ponzi Schemes

• 💯 Top Tweets

The Rallie Recap

⏰ The crypto world is buzzing with the trial of FTX Founder, Sam Bankman-Fried. A new analysis on the situation is breaking down how it might play out. Here’s the skinny:

• The Background:

  • In just under two weeks, FTX founder, Sam Bankman-Fried, will defend himself against allegations of fraud and conspiracy concerning the failure of FTX and Alameda Research.

  • The trial is set to commence on Oct. 3, 2023. However, the former FTX CEO will remain in jail until the trial, as three judges with the 2nd U.S. Circuit Court of Appeals called SBF’s arguments behind a motion for release "unpersuasive".

• Jury selection:

  • First, a final pretrial conference will outline witness schedules, trial dates, and address outstanding motions.

  • Next, the voir dire process, starting Oct. 3, involves selecting jurors. Potential jurors might be asked about any connections with FTX, and the selection could last days due to the high-profile nature of the case.

  • Unlike state court, only the judge asks questions during jury selection in federal court.

• The Trial:

  • The trial will see opening statements, presentation of evidence by the Department of Justice (DOJ), and cross-examination of witnesses.

  • The DOJ must prove guilt "beyond a reasonable doubt", a very high bar. It's still uncertain whether Bankman-Fried will testify in his defense.

• Unanimous Verdict Required:

  • All jurors must agree on a guilty verdict. If even one juror isn't convinced, it could derail the conviction.

• Potential Sentencing:

  • If convicted, Bankman-Fried's prison time is largely in the hands of Judge Kaplan. While there are guidelines, they're seen more as starting points.

  • An appeal from Bankman-Fried's team is likely if he's convicted. But the DOJ cannot appeal a "not guilty" verdict due to "double jeopardy" rules.

• What's Next? 

  • Well, this isn't the end. Bankman-Fried faces more DOJ charges in a separate trial set for early next year.

  • We’ll keep you updated on this case, as it promises to be a significant chapter in crypto history.

Headlines That Hit

• 📉 Buying opportunity? Bitcoin sinks below $27,000 after Fed signals keeping rates higher for longer.

• 👀 Bad investment. JPMorgan Chase has racked up $14M in legal fees defending itself against allegations of facilitating Jeffrey Epstein’s criminal sex trafficking operation.

• 💻 On the AI bandwagon. Stablecoin issuer Tether ventures into AI with Northern Data in $427M Nvidia chip splurge.

The Rallie Refresh: Ponzi Schemes

Ponzi schemes, synonymous with financial deceit, have a notorious history that continues to impact unsuspecting victims. Read on to uncover the origins and mechanics of these fraudulent schemes.

• 🌎 Origins of Ponzi Schemes: Ponzi schemes get their name from Charles Ponzi, an Italian immigrant who made waves in the early 20th century with his fraudulent investment scheme. Ponzi claimed to profit from international reply coupons but was really just shuffling money from new investors to pay off the earlier ones.

• ⚙️ How They Operate: Ponzi schemes promise investors sky-high returns, way beyond what's typical in legitimate investments. Instead of earning real profits, they use fresh investments to pay existing investors, creating the illusion of success.

• ✅ Key Traits of Ponzi Schemes: They often lack a legitimate business or investment plan. Instead, they rely on the constant recruitment of new participants to keep the scheme going. Eventually, they collapse when recruitment slows down or withdrawals exceed new investments.

• ⚖️ Legal Consequences: Ponzi schemes are illegal in most places and are considered a form of securities fraud. Perpetrators can face severe legal penalties, including jail time and hefty fines.

Understanding the origins and workings of Ponzi schemes is vital to safeguard yourself against potential financial scams. Always stay cautious and DYOR when evaluating investment opportunities that promise quick, risk-free riches.

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DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions