<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> extropy-chat <extropy-chat-bounces@lists.extropy.org> <b>On Behalf Of </b>Stathis Papaioannou via extropy-chat<br><b>…</b><o:p></o:p></p></div><div><div><div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>>…The deception was that customer funds were used to prop up a risky but supposedly separate part of the business, Alameda Research…Such exchanges only make profit from fees and pay tax on this profit, while the customers pay their own tax if they make a capital gain, which only occurs if they realise a capital gain.<o:p></o:p></p></div></div></div><p class=MsoNormal>-- <o:p></o:p></p><div><p class=MsoNormal>Stathis Papaioannou<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Stathis, it is very clear to me that several of you guys, Adrian and others, know a lot more about this topic than I do. It is even more clear to me from what I have learned in this thread, I am confident in my prediction and observation: Bankman Fried committed fraud but not necessarily tax evasion, but ironically will not be charged in criminal court, rather by the IRS.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>All that is a backhanded way of saying that the US government will act in its own best interest by whatever means are available to it. The US government does not want a competing currency to exist. It would really prefer digital currency remain difficult to switch back and forth with US fiat currency, or if so, the IRS wants a cut of the action in both directions. The IRS will be fine with all this if they get a generous piece of the pie. The retail politicians are OK with defrauding investors, so long as the same retail politicians get their cut of the winnings.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>A prosecution of Bankman Fried in criminal court would be gummed up by politicians who benefitted from his theft of investor funds. A tax law prosecution would be based on the IRS’ burning resentment that they didn’t get a cut of the action.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Damn I have grown cynical in my old age. Billw, how can we not be cynical?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>spike<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>