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Saturday, November 4, 2023

Corruption is Everywhere > FTX Crypto Exchange; Guatemalan judge shuts down government; Brazil calls in Military to fight crime

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When brilliant minds lack a moral compass...



Sam Bankman-Fried found guilty of defrauding customers

of FTX crypto exchange


Former crypto tycoon Sam Bankman-Fried was found guilty Thursday by a New York jury on all seven counts of fraud, embezzlement and criminal conspiracy.

Issued on: 03/11/2023 - 01:55
France24, 1 min

Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, July 26, 2023.
© Amr Alfiky, Reuters

The panel reached its decision after five weeks of trial, and Bankman-Fried now faces up to 110 years behind bars. Sentencing will take place at a later date.

The month-long federal trial had been an ordeal for Bankman-Fried after some of his closest associates testified that he was key to all the decisions that saw $8 billion vanish from his FTX trading platform.

Bankman-Fried, 31, was until late last year a poster-boy for the crypto industry and estimated to be worth $26 billion by Fortune magazine, before his empire collapsed spectacularly.

In closing arguments, prosecutors portrayed the defendant as an extremely smart man consumed by greed who knew what he was doing when FTX funds were secretly funneled to his personal hedge fund.

"Find him guilty," US prosecutor Danielle Sassoon told the jury earlier on Thursday. "He was ambitious" and had "the arrogance to think that he could get away with a fraud," she added.

The defence said their client had acted in "good faith" and was overtaken by circumstances and the financial ineptitude of close associates who testified against him to gain leniency from prosecutors.

The star witness in the trial was Bankman-Fried's former associate and on-and-off-again girlfriend Caroline Ellison who told the jury that they had stolen "around $14 billion" from clients of the FTX cryptocurrency trading platform before it collapsed into bankruptcy late last year.

The money was used to prop up Alameda Research, Bankman-Fried's personal hedge fund for which he picked Ellison as CEO.

In November 2022, the FTX empire imploded, unable to cope with massive withdrawal requests from customers panicked to learn that some of FTX's funds had been committed to risky operations by Alameda. That money was used to finance venture capital deals, political contributions as well as swanky real estate in the Bahamas.

It also went toward paying tens of millions of dollars to celebrities, including Tom Brady and Gisele Bündchen, to gain their endorsement of FTX, as well as buying the naming rights for the Miami Heat's home arena.

(AFP)

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Are all Central American countries Narco States?



Guatemalan electoral authority suspends party of President-elect Arevalo


The electoral body in charge of regulating Guatemala’s political groups, known as the Citizen Registry, announced the suspension Thursday of President-elect Bernardo Arevalo’s Seed Movement party.

Issued on: 03/11/2023 - 03:17, 1 min

Guatemalan President-elect Bernardo Arevalo attends a meeting with magistrates of the Supreme Electoral Tribunal at the headquarters of the Supreme Electoral Tribunal in Guatemala City on October 2, 2023. © Johan Ordoñez, AFP


A judge had granted the party’s suspension at the request of the Attorney General’s Office back in July, shortly before Arevalo was declared the second-place finisher in the initial round of voting. But a higher court ruled that the party could not be suspended during the election cycle, which only ended Oct. 31.

Arevalo went on to win a runoff in August and is scheduled to take office in January.

However, since the original judge’s order for the party’s suspension remained pending, the Citizen Registry said Thursday it executed the order.

The Attorney General’s Office has alleged wrongdoing in the way the party collected the necessary signatures to register years earlier. Observers say Attorney General Consuelo Porras is trying to meddle in the election to thwart Arevalo and subvert the will of the people.

Luis Gerardo Ramirez, the registry’s spokesperson, said the party cannot hold assemblies or carry out administrative procedures.

Ramírez also said the party could appeal the registry’s decision to the Supreme Electoral Tribunal, but since the order came from a judge the appeal would need to go through a court.

"The suspension is unprecedented, no criminal judge could suspend a party because it’s illegal," said Samuel Perez, leader of the Seed Movement’s lawmakers in the congress. "The problem is that the judge’s suspension isn’t legal, it’s political."

The U.S. State Department’s Deputy Assistant Secretary for Western Hemisphere Affairs Eric Jacobstein told journalists during a visit to Guatemala Thursday that the party’s suspension was worrisome as an apparent way to interfere to with Arevalo’s transition to office.

It remained to be seen how the order would affect other institutions such as Congress, where Seed Movement lawmakers were supposed to eventually take their seats.

Opponents of the Seed Movement in Congress already had declared those incoming lawmakers independent, meaning they could not chair committees or hold other leadership positions. A court at the time had ruled that the Congress couldn't deny Seed Movement lawmakers leadership positions on grounds that the party couldn't be suspended during the election cycle.

(AP)




Can Latin America's biggest state avoid being completely taken over by drug lords?



Brazil's army deployed to transport hubs in crackdown

on organised crime


Brazil's President Luiz Inacio Lula da Silva said Wednesday he is sending the armed forces to boost security at some of the country's most important airports, ports and international borders as part of a renewed effort to tackle organised crime in Latin America's largest nation. 

Issued on: 02/11/2023 - 01:17; 3 min

Planes sit on the tarmac at Galeao International Airport in Rio de Janeiro, Brazil, on November 1, 2022.
© Pablo Porciuncula, AFP



The decision comes days after members of a criminal gang set fire to dozens of buses in Rio de Janeiro, apparently in retaliation for the police slaying their leader's nephew.

"We have reached a very serious situation," Lula said at a press conference in Brasilia after signing the decree. "So we have made the decision to have the federal government participate actively, with all its potential, to help state governments, and Brazil itself, to get rid of organised crime."

Brazil will mobilise 3,600 members of the army, navy and air force to increase patrols and monitor the international airports in Rio and Sao Paulo, as well as two maritime ports in Rio and Sao Paulo's Santos port, the busiest in Latin America – and a major export hub for cocaine.

The deployment is part of a government's broader plan that includes increasing the number of federal police forces in Rio, improving cooperation between law enforcement entities and boosting investment in state-of-the-art technology for intelligence gathering.

That is, after they pay for the new busses, I presume.

Attempt to 'suffocate' militias


State and federal authorities have said in recent weeks they want to "suffocate" militias by going after their financial resources.

Rio’s public security problems go back decades, and any federal crackdown on organised crime needs to be supported by a far-reaching plan, the fruits of which might only be seen years from now, according to Rafael Alcadipani, a public security analyst and professor at the Getulio Vargas Foundation, a university in Sao Paulo.

"The federal government is being rushed into this due to previous lack of action," said Alcadipani. "The government is trying, but the chance of this not working is huge ... This is an emergency plan, something being done last minute as though it were a problem that arose just now, but it isn't."

Brazil's Justice Minister Flávio Dino said the measures announced Wednesday are part of a plan being developed since Lula took office on Jan. 1, and the result of months of consultations with police forces, local officials and public security experts.

Recent wave of unrest


The latest wave of unrest in Rio began Oct. 5, when assassins killed three doctors in a beachside bar, mistaking one of them for a member of a militia. The city's powerful militias emerged in the 1990s and were originally made up mainly of former police officers, firefighters and military men who wanted to combat lawlessness in their neighbourhoods. They charged residents for protection and other services, but more recently moved into drug trafficking themselves.

There has since been increased pressure for the state and federal governments in Brazil to come up with a plan and demonstrate they have a handle on public security in the postcard city.

On Oct. 9, days after the doctors were killed, Rio state government deployed hundreds of police officers to three of the city’s sprawling, low-income neighbourhoods.

And on Oct. 23, Rio's police killed Matheus da Silva Rezende, known as Faustao, nephew of a militia's leader and a member himself. In a clear show of defiance, criminals went about setting fire to at least 35 buses.

On Wednesday, federal police in Rio said it had arrested another militia leader and key militia members in Rio das Pedras and Barra da Tijuca, both in Rio state. They also seized several luxurious, bullet-resistant cars, a property and cash.

(AP)



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