WEBVTT - Student Loan Repayment and an Update on SBF

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<v Speaker 1>This is Bloomberg Law.

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<v Speaker 2>Are plaintiff's leries involved in a kind of competition in Congress?

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<v Speaker 2>Force a judicial code on the justices?

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<v Speaker 3>Interviews with prominent attorneys in Bloomberg Legal Experts.

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<v Speaker 2>My guest is former federal prosecutor Robert Mint Joining me

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<v Speaker 2>is Bloomberg Law reporter Kyle Janner, and.

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<v Speaker 3>Analysis of important legal issues, cases and headlines.

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<v Speaker 2>Is it unusual a grand jury like this to suspect

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<v Speaker 2>people aren't telling the truth? One of the first times

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<v Speaker 2>the Justice Department has called for the breakup of a

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<v Speaker 2>major company.

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<v Speaker 1>Bloomberg Law with June Grasso from Bloomberg Radio.

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<v Speaker 3>Welcome to Bloomberg Law. I Bloomberg Radio. I'm Madison Mills

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<v Speaker 3>in for June Grasso. This week, We've gone from Miami

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<v Speaker 3>to Jersey to Washington this week covering former President Trump's

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<v Speaker 3>indictment and how Washington is responding. Today, we're going to

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<v Speaker 3>stick in Washington, focusing on the Supreme Court nearing a

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<v Speaker 3>decision on President Biden's student debt forgiveness program. Plus remember

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<v Speaker 3>Sam BigMan than fed. We'll break down the latest legal

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<v Speaker 3>troubles ahead for him, and we'll unpack the latest wrinkle

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<v Speaker 3>and the PGA Live deal. But first, let's start with

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<v Speaker 3>the Supreme Court busy deciding a litany of cases, from

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<v Speaker 3>those involving the irs to one that's closely watched by

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<v Speaker 3>thousands of students, President Biden's loan forgiveness plan. Here to

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<v Speaker 3>discuss the latest is our Scotus reporter at large, Greg Store. Greg.

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<v Speaker 3>Always great to get your thoughts on all things happening

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<v Speaker 3>with the Supreme Court. Can you just give us the

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<v Speaker 3>context here, remind us the details of the student debt

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<v Speaker 3>plan and what the challenge is that's getting discussed in court.

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<v Speaker 4>Sure, Madison, happy to be on. So, Yeah, this is

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<v Speaker 4>a President Joe Biden's plan to slash the student out

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<v Speaker 4>of about forty million or more than forty million people.

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<v Speaker 4>There are estimates that it could cost as much as

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<v Speaker 4>four hundred billion dollars, and the legal question is whether

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<v Speaker 4>the administration had the authority to do that, specifically the

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<v Speaker 4>Education Department. There's a statute known as the Hero Act,

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<v Speaker 4>and a group of states and borrowers have sued saying

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<v Speaker 4>that law does not give the Education Department the authority

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<v Speaker 4>to just eliminate this a sweeping amount of student loans.

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<v Speaker 3>But some students have already received a little bit of

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<v Speaker 3>student loan forgiveness.

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<v Speaker 4>Correct, the program did start, but it really didn't get

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<v Speaker 4>very far before lower court injunctions got in the way.

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<v Speaker 4>And so right now it is on hold and won't

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<v Speaker 4>resume unless the court sides with the Biden administration in

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<v Speaker 4>this case.

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<v Speaker 3>So talk me through that. What is the likelihood of

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<v Speaker 3>that happening?

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<v Speaker 4>Well, the arguments sure made it seem like that the

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<v Speaker 4>court's conservative justices didn't think the Education Department had the

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<v Speaker 4>authority to do this. There was a lot of questioning

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<v Speaker 4>about the statutory language of this Hero's Act. The law

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<v Speaker 4>says the Secretary of Education can waive or modify provisions

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<v Speaker 4>in the law so that betters are not placed in

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<v Speaker 4>a worse position financially because of a national emergency, and

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<v Speaker 4>so there were some real questions about whether that language

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<v Speaker 4>covered this this action. If the Biden administration is going

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<v Speaker 4>to win this case, it is probably going to be

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<v Speaker 4>on the question of standing. That is, do these states

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<v Speaker 4>and borrowers even have the legal right to go into

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<v Speaker 4>court to challenge this program. We didn't hear as much

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<v Speaker 4>about that during the arguments, so that may be an

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<v Speaker 4>open question.

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<v Speaker 3>So it's an open question. But given what we know

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<v Speaker 3>about where each judge kind of sits politically, do we

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<v Speaker 3>have any sort of insight or tell us to what

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<v Speaker 3>the decision might end up being.

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<v Speaker 4>Well, you know, based on the merits question, whether you

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<v Speaker 4>know the two thousand and three law allows this. You know,

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<v Speaker 4>what we've seen from this court is that they are

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<v Speaker 4>pretty skeptical of broad executive branch assertions of power. We've

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<v Speaker 4>seen them, you know, strike down the eviction moratorium during

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<v Speaker 4>the pandemic. We've seen them block that vaccine or testing

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<v Speaker 4>rule from OSHA during the pandemic. We seen them limit

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<v Speaker 4>the power of the EPA. That standing question, though, is

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<v Speaker 4>a little trickier because that can go a lot of

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<v Speaker 4>different ways. We had a big case that was resolved

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<v Speaker 4>today involving the Indian Child Welfare Act case where the

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<v Speaker 4>Court tossed out part of a challenge to this law

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<v Speaker 4>which gives Indian tribes and families preferences in terms of

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<v Speaker 4>fostering and adopting children in Native American children. And the

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<v Speaker 4>Court tossed out part of that challenge on standing grounds,

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<v Speaker 4>and that was a pretty broad ruling. Seven justices were

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<v Speaker 4>on it. So standing can be unpredictable and that's kind

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<v Speaker 4>of the reason, just based on the argument. You know,

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<v Speaker 4>I can't sit here and tell you I'm really confident

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<v Speaker 4>that this program is going down.

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<v Speaker 3>Well, it sounds like President Biden has a little bit

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<v Speaker 3>of the same gut feeling. Here's what he had to

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<v Speaker 3>say about his options if the Court does not side

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<v Speaker 3>with him on this.

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<v Speaker 5>Some of the same members of Congress I want to

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<v Speaker 5>cut student aid p actually received loans to keep their

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<v Speaker 5>small business flow during the pandemic. Some of the same

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<v Speaker 5>members of Congress who supported this bill voted through huge

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<v Speaker 5>tax cuts for corporations and the wealthy as well. But

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<v Speaker 5>when it comes to hard working Americans trying to get

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<v Speaker 5>ahead dealing with the student debt relief, that's where they

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<v Speaker 5>drew the line.

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<v Speaker 3>So Biden, they're talking a little bit about the political

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<v Speaker 3>response that he's getting from Congress in particular. But Greg,

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<v Speaker 3>I know you cover the Supreme Court for us, But

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<v Speaker 3>if you had to put on your White House Washington

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<v Speaker 3>hat for me here, do you think Biden has any

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<v Speaker 3>other options to get this through in any other way

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<v Speaker 3>if the Supreme Court does not side where he hopes

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<v Speaker 3>they will.

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<v Speaker 4>Well, there are certainly things he could try. There are

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<v Speaker 4>some options that folks like Elizabeth Warren had been pressing

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<v Speaker 4>the White House to try, so may be a backup plan.

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<v Speaker 4>Obviously the administration would like it Plan AID to succeed

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<v Speaker 4>and doesn't want to talk too much about Plan B,

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<v Speaker 4>you know, from a political standpoint, and this isn't you

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<v Speaker 4>know the area I cover, but it's I think it's

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<v Speaker 4>interesting to think about. You know, if the Supreme Court

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<v Speaker 4>blocks this, does it that helped Joe Biden politically or

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<v Speaker 4>hurt him? Is he able to say, look, I tried,

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<v Speaker 4>the Supreme Court got in the way. Or does it

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<v Speaker 4>make it look like he's not effected at putting his

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<v Speaker 4>priorities into practice?

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<v Speaker 3>And definitely a big question for him as that twenty

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<v Speaker 3>twenty four election gets closer and closer by the second.

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<v Speaker 3>Greg Store, thank you so much for joining us. Greg

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<v Speaker 3>is our Supreme Court expert voice and reporter down in Washington.

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<v Speaker 3>I want to bring in Claire Valentine from Bloomberg News.

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<v Speaker 3>Claire always does a fantastic job of covering the personal

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<v Speaker 3>stories behind these big issues that we talk about, So Claire,

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<v Speaker 3>thank you so much for coming in. You've done this

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<v Speaker 3>great piece on the anxiety that this delay and student

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<v Speaker 3>debt forgiveness is causing for students. Talk to me about

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<v Speaker 3>what you learned in your reporting.

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<v Speaker 1>Yeah, so this has been a three year saga for

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<v Speaker 1>a lot of people. Loans have been on pause, and

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<v Speaker 1>then there's been dates where government officials say loans are

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<v Speaker 1>going to resume, and then they get extended again. So

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<v Speaker 1>right now we're pretty certain that loans are going to

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<v Speaker 1>come back on August thirtieth. So that means that people

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<v Speaker 1>will be required to make monthly payments again. And from

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<v Speaker 1>looking at prior statistics, we see that most people have

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<v Speaker 1>an average of about four hundred dollars a month in

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<v Speaker 1>student loan payments. That's a big chunk of cash and

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<v Speaker 1>people are going to have to add that onto already

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<v Speaker 1>tight budgets. So in addition to that monetary hit, you're

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<v Speaker 1>also seeing people stressed and just really confused about what's

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<v Speaker 1>going on with forgiveness and payments restarting.

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<v Speaker 3>And I know some of your sources talked about how

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<v Speaker 3>there's this misconception that this is just extra stimulus money

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<v Speaker 3>for people who already have enough. Talk to me about

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<v Speaker 3>what you learned about that piece.

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<v Speaker 1>Yeah, so this money really is designed for people who

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<v Speaker 1>are not making a ton of money. This is not

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<v Speaker 1>for people who are you know, got law degrees and

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<v Speaker 1>suddenly are making six figures. This is all designed for

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<v Speaker 1>people who maybe got a degree and are working hard,

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<v Speaker 1>but their income is just not matching up with their

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<v Speaker 1>expenses and not allowing them to make those loan payments

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<v Speaker 1>without sacrificing other areas of their life. And even if

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<v Speaker 1>Biden's free offness program does go through, no more than

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<v Speaker 1>forty five percent of borrowers will have their loans wiped

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<v Speaker 1>out completely. So you've still got a ton of people with,

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<v Speaker 1>you know, in some cases six figures worth of student

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<v Speaker 1>loan debt that they're paying on.

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<v Speaker 3>Yeah, I'm just looking at your story here. You start

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<v Speaker 3>off with Ali Rooker, who is a thirty year old

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<v Speaker 3>in Detroit with eighty thousand dollars in federal loans.

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<v Speaker 1>Yeah, and that really just impacts your whole life. I mean,

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<v Speaker 1>you know, Ali is trying to buy a home right now,

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<v Speaker 1>and even with just this limbo that we're in with

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<v Speaker 1>the Supreme Court, she doesn't know how much of a

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<v Speaker 1>home she can afford. I mean, ten thousand dollars is

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<v Speaker 1>a big chunk in terms of looking at your whole

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<v Speaker 1>financial picture, So even beyond just the monthly budgets, people

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<v Speaker 1>are having to put big life decisions on hold as

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<v Speaker 1>we wait to see what happens with Biden's forgiveness plan.

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<v Speaker 3>And because it's Bloomberg, I'm going to end with a

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<v Speaker 3>question for you on just kind of the economic impact

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<v Speaker 3>of that, Right, what do we anticipate happening as we

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<v Speaker 3>are anticipating that this is not going to end up

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<v Speaker 3>going through, Right, So, once these student loan payments have

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<v Speaker 3>to restart, how big is the economic.

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<v Speaker 4>Impact of that?

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<v Speaker 1>Yeah, so pre pandemic, about fifteen percent of borrowers were

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<v Speaker 1>behind on payments. That's expected to return and maybe even

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<v Speaker 1>surpass that. We've seen some reports. There was one from

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<v Speaker 1>financial firm Jeffreys that was comparing the potential impact of

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<v Speaker 1>student loans returning to the twenty thirteen physical cliff. So

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<v Speaker 1>it really is expected to hurt the consumer, to decrease

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<v Speaker 1>the amount of disposable income people have for eating out,

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<v Speaker 1>for spending on goods and services. And you know, just

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<v Speaker 1>like we saw inflation hit people hard, this is expected

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<v Speaker 1>to also hit people hard and make them have less

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<v Speaker 1>money to spend on everyday items.

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<v Speaker 3>Did you mainly speak with sources. Who are those individual

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<v Speaker 3>people or did you talk with any investors or economists

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<v Speaker 3>about their outlook for it as well?

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<v Speaker 1>Are we focused on Yeah, so there's mostly what I've

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<v Speaker 1>spent my time focusing on with reporting is is student

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<v Speaker 1>loan is issue or student loan holders? But they're definitely

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<v Speaker 1>it's something that economists are starting to look at. And

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<v Speaker 1>I think for so long, you know, financial experts and

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<v Speaker 1>economists didn't know what was going to happen with this.

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<v Speaker 1>The restart date got extended so many times. But now

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<v Speaker 1>you know, especially when we're looking at what the Fed's

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<v Speaker 1>doing and trying to decide on rate hikes, this is

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<v Speaker 1>going to play a big picture role.

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<v Speaker 3>Yeah. Absolutely, Claire, Well, thank you so much for bringing

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<v Speaker 3>us the people behind the story. As always really appreciated.

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<v Speaker 3>That was Claire Balentine with Bloomberg News. If you're listening

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<v Speaker 3>to Bloomberg Law, I'm Madison Mills in for June Brasso.

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<v Speaker 3>This is Bloomberg. This is Bloomberg Law with June Grasso

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<v Speaker 3>from Bloomberg Radio. This is Bloomberg Law. I'm Madison mills

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<v Speaker 3>in for June Grasso. This week US prosecutors in that

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<v Speaker 3>case again, Sam Bankman Freed asked the judge to set

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<v Speaker 3>aside five counts the FTX co founder is contesting why

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<v Speaker 3>to avoid trial delays. This comes after bankman Freed won

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<v Speaker 3>a Bahamian court ruling earlier in the week on those

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<v Speaker 3>five counts. Here to discuss what it all means and

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<v Speaker 3>the impact is Ava Benny Morrison, Bloomberg News Legal reporter, Ava,

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<v Speaker 3>thank you so much for being here with us. Before

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<v Speaker 3>we get into the specific updates here, I kind of

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<v Speaker 3>feel like the FTX situation is on the back burner

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<v Speaker 3>for me and my coverage as I've moved on to

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<v Speaker 3>coinbase and finance. Can you give us a little recap

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<v Speaker 3>legally where SBF is at here?

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<v Speaker 4>Sure?

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<v Speaker 6>Yes, it certainly does say in a long time ago

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<v Speaker 6>that he was arrested in the Bahamas. He's about four

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<v Speaker 6>months out from his scheduled trial in federal court in Manhattan.

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<v Speaker 6>He's pleaded not guilty to thirteen different criminal charges. We're

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<v Speaker 6>in the stage at the moment where the lawyers are

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<v Speaker 6>arguing over discovery. What different material thereafter and in this case,

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<v Speaker 6>specifically as we heard today, are the validity of some

0:12:25.440 --> 0:12:26.240
<v Speaker 6>of those charges?

0:12:27.000 --> 0:12:30.120
<v Speaker 3>And talk me through that argument. What is the case

0:12:30.200 --> 0:12:32.840
<v Speaker 3>for why some of those charges would be invalid.

0:12:33.800 --> 0:12:38.040
<v Speaker 6>So Sam Bagminfried was extradited back from the Bahamas to

0:12:38.080 --> 0:12:41.360
<v Speaker 6>the US in December after he was arrested, and he

0:12:41.520 --> 0:12:46.200
<v Speaker 6>consented to extradition. At that point, the US prosecutors had

0:12:46.240 --> 0:12:50.240
<v Speaker 6>presented an ad count indictment mainly dealing with the alleged

0:12:50.240 --> 0:12:54.360
<v Speaker 6>fraud at FTX, and he agreed to come back to

0:12:54.400 --> 0:12:58.520
<v Speaker 6>the US to face those charges. In the months after

0:12:58.559 --> 0:13:03.720
<v Speaker 6>he returned, filed five additional charges against him. So he

0:13:04.240 --> 0:13:08.239
<v Speaker 6>is essentially challenging that, saying that wasn't part of my agreement,

0:13:08.960 --> 0:13:13.960
<v Speaker 6>and under extradition law, you can't file those charges. You

0:13:14.040 --> 0:13:16.720
<v Speaker 6>need consent from the Bahamas, and you haven't got that yet.

0:13:17.600 --> 0:13:19.920
<v Speaker 3>So is the key piece there? Would you say, does

0:13:19.960 --> 0:13:21.520
<v Speaker 3>it hinge on the extradition?

0:13:22.880 --> 0:13:26.600
<v Speaker 6>It hinges on the Bahamas? We heard today prosecutors said

0:13:26.600 --> 0:13:30.199
<v Speaker 6>that they had been in communication with the government down

0:13:30.240 --> 0:13:33.360
<v Speaker 6>there and were of the view that they were going

0:13:33.440 --> 0:13:36.640
<v Speaker 6>to provide that consent well before the trial. But that

0:13:36.679 --> 0:13:40.800
<v Speaker 6>hasn't happened yet. Behind the scenes, Sam Beakman Free's legal

0:13:40.880 --> 0:13:44.400
<v Speaker 6>team has gone directly to the Bahamas and said, before

0:13:44.440 --> 0:13:47.040
<v Speaker 6>you provide that consent, we want to be heard on

0:13:47.120 --> 0:13:50.640
<v Speaker 6>why we don't think these charges are valid. So there's

0:13:50.679 --> 0:13:52.920
<v Speaker 6>been a They're fighting his battle on a number of

0:13:52.960 --> 0:13:54.319
<v Speaker 6>fronts at the moment, and.

0:13:55.240 --> 0:13:57.719
<v Speaker 3>Those are going to be very critical to monitor as

0:13:57.720 --> 0:14:01.720
<v Speaker 3>we continue to cover this trial. Can you walk me

0:14:01.760 --> 0:14:05.560
<v Speaker 3>through more broadly what his defense might look like as

0:14:05.559 --> 0:14:08.160
<v Speaker 3>we get closer to the trial day, even if it

0:14:08.200 --> 0:14:09.559
<v Speaker 3>does face some delays.

0:14:09.160 --> 0:14:13.320
<v Speaker 6>Here, sure, once we get over this legal hurdle and

0:14:13.360 --> 0:14:16.839
<v Speaker 6>the judge makes a decision on whether the post and

0:14:17.000 --> 0:14:22.520
<v Speaker 6>tradition charges can be separated. He has given a little

0:14:22.520 --> 0:14:25.400
<v Speaker 6>bit of a hint as to what his defense might be.

0:14:26.280 --> 0:14:29.160
<v Speaker 6>Part of that hinges on the advice he said he

0:14:29.240 --> 0:14:35.080
<v Speaker 6>got from council, is trying to subpoenas some information from

0:14:35.160 --> 0:14:38.720
<v Speaker 6>a law firm that provided a lot of advice and

0:14:38.760 --> 0:14:43.720
<v Speaker 6>guidance to FTX and Alameda, and he's essentially suggesting that

0:14:44.120 --> 0:14:47.400
<v Speaker 6>he acted on the advice of counsel in doing a

0:14:47.480 --> 0:14:50.040
<v Speaker 6>lot of the things that pop up in the indictment

0:14:50.120 --> 0:14:53.080
<v Speaker 6>as well. We've also got a little bit of the

0:14:53.320 --> 0:14:56.800
<v Speaker 6>insight into some of the arguments he might make at

0:14:56.840 --> 0:15:01.360
<v Speaker 6>the trial based on his rebuttal in the weeks after

0:15:01.400 --> 0:15:06.320
<v Speaker 6>that he was charged. He's essentially in a few difference

0:15:06.640 --> 0:15:11.240
<v Speaker 6>blog posts has put down the multi billion dollar hole

0:15:11.320 --> 0:15:17.200
<v Speaker 6>at FTX to FTX being a victim of the successive

0:15:17.840 --> 0:15:21.920
<v Speaker 6>market collapses and it all being sort of a problem

0:15:21.960 --> 0:15:25.040
<v Speaker 6>with accounting as opposed to criminality, and.

0:15:25.240 --> 0:15:31.960
<v Speaker 3>From your legal standpoint, talk to me about those defenses, right,

0:15:32.400 --> 0:15:36.360
<v Speaker 3>is that something that you've seen hold up in court previously.

0:15:36.760 --> 0:15:39.400
<v Speaker 3>How likely is he to be successful with that type

0:15:39.400 --> 0:15:40.280
<v Speaker 3>of legal argument.

0:15:42.400 --> 0:15:47.080
<v Speaker 6>It's hard to tell. I think the defense of acting

0:15:47.160 --> 0:15:49.680
<v Speaker 6>on the advice of your counsel is an interesting one

0:15:50.680 --> 0:15:57.040
<v Speaker 6>that hasn't come up too frequently. But unfortunately for him,

0:15:57.600 --> 0:16:03.560
<v Speaker 6>the crux of the criminal allegations here is that he

0:16:03.640 --> 0:16:07.520
<v Speaker 6>misused billions of dollars in customer funds and spent that

0:16:07.640 --> 0:16:13.080
<v Speaker 6>on personal expenses, property investments through element of research. The

0:16:13.200 --> 0:16:17.280
<v Speaker 6>legal advice doesn't address that from what we've seen, so

0:16:17.320 --> 0:16:22.400
<v Speaker 6>he still needs an argument against the core of those

0:16:22.400 --> 0:16:27.320
<v Speaker 6>criminal allegations as well as opposed to putting it down

0:16:27.360 --> 0:16:31.960
<v Speaker 6>to you know, issues with accounting and being just a

0:16:32.040 --> 0:16:37.480
<v Speaker 6>victim of the market downfall. I think, you know, you

0:16:37.520 --> 0:16:41.320
<v Speaker 6>could see someone making that argument before a jury, and

0:16:41.360 --> 0:16:44.400
<v Speaker 6>you're dealing with his complicated matters when we're talking about

0:16:44.400 --> 0:16:49.800
<v Speaker 6>cryptocurrency and you know hedge funds, crypto hedge funds and

0:16:49.840 --> 0:16:54.040
<v Speaker 6>different investments and whatnot. So I think the prosecution will

0:16:54.160 --> 0:16:56.880
<v Speaker 6>really make an effort to sort of simplify the jury

0:16:56.960 --> 0:16:59.840
<v Speaker 6>so they understand what the core issues are.

0:17:00.640 --> 0:17:03.360
<v Speaker 3>So what's next then for this case, what's the next

0:17:03.360 --> 0:17:05.600
<v Speaker 3>step that we can expect to have you back on

0:17:05.680 --> 0:17:06.040
<v Speaker 3>to cover.

0:17:07.240 --> 0:17:10.120
<v Speaker 6>So next up will be the judge making a decision

0:17:10.280 --> 0:17:13.600
<v Speaker 6>on whether he is going to split the case, so

0:17:14.040 --> 0:17:18.840
<v Speaker 6>Sam Bankminfrid will go to trial on those eight original charges,

0:17:18.920 --> 0:17:23.240
<v Speaker 6>which include the fraud charges, the core allegations of the case,

0:17:24.000 --> 0:17:27.560
<v Speaker 6>and then the remaining five will be essentially kicked down

0:17:27.600 --> 0:17:30.040
<v Speaker 6>the road till next year and potentially go to trial then.

0:17:30.160 --> 0:17:33.320
<v Speaker 6>So we're really keeping an eye app for that decision.

0:17:34.880 --> 0:17:38.240
<v Speaker 3>And forgive me if this is totally not a smart question,

0:17:38.280 --> 0:17:40.479
<v Speaker 3>but I just cut off the week covering a lot

0:17:40.680 --> 0:17:44.120
<v Speaker 3>about former President Trump and his indictment and how there

0:17:44.160 --> 0:17:47.800
<v Speaker 3>are several trials surrounding the former president right now. I'm

0:17:47.840 --> 0:17:50.440
<v Speaker 3>curious if there is going to be any read through

0:17:50.480 --> 0:17:54.560
<v Speaker 3>of that for SBF. Could we expect to see further indictments,

0:17:54.920 --> 0:17:59.040
<v Speaker 3>further charges either federally or in other states?

0:17:59.600 --> 0:18:03.560
<v Speaker 6>Against Sam Bakman Free. Yes, I don't think so, because

0:18:03.640 --> 0:18:08.439
<v Speaker 6>we're seeing this tension over the superseding indictments that have

0:18:08.600 --> 0:18:12.720
<v Speaker 6>already been filed against Sam bankman Fred specifically in New York.

0:18:13.400 --> 0:18:17.240
<v Speaker 6>It seems like he is going really hard to challenge

0:18:17.240 --> 0:18:21.720
<v Speaker 6>the validity of those, So I can't imagine that federal

0:18:21.720 --> 0:18:25.119
<v Speaker 6>prosecutors in Manhattan are sort of gearing up to file

0:18:25.520 --> 0:18:27.560
<v Speaker 6>even more charges on top of him while they're still

0:18:27.600 --> 0:18:32.040
<v Speaker 6>trying to navigate this conflict. But that said, there's still

0:18:32.040 --> 0:18:36.120
<v Speaker 6>a question mark around some other people who were central

0:18:36.400 --> 0:18:42.080
<v Speaker 6>to FTX that haven't signed cooperation agreements like some of

0:18:42.400 --> 0:18:45.280
<v Speaker 6>the executives have. So we'll be watching to see if

0:18:45.520 --> 0:18:47.720
<v Speaker 6>I guess there will be any other criminal charges brought

0:18:47.760 --> 0:18:49.720
<v Speaker 6>against other people who are tied to FTX.

0:18:51.000 --> 0:18:54.119
<v Speaker 3>Right, that's a great point in our final minute with you.

0:18:54.680 --> 0:18:56.720
<v Speaker 3>The one thing that we haven't talked about is this

0:18:57.440 --> 0:19:01.600
<v Speaker 3>accusation of Sam BigMan Freed bribing officials to free that

0:19:01.720 --> 0:19:06.639
<v Speaker 3>forty million dollars frozen on the crypto exchange. What do

0:19:06.680 --> 0:19:08.200
<v Speaker 3>we need to know about that charge?

0:19:08.920 --> 0:19:13.760
<v Speaker 6>But this was the latest charge that was filed. Prosecutors

0:19:13.800 --> 0:19:18.080
<v Speaker 6>filed that in any superseding indictment in March accusing Sam

0:19:18.160 --> 0:19:24.080
<v Speaker 6>Bankman Freed of directing the bribe of Chinese government officials,

0:19:24.920 --> 0:19:28.840
<v Speaker 6>organizing to pay them forty million dollars to help free

0:19:28.960 --> 0:19:34.520
<v Speaker 6>unfreeze crypto assets that were on a crypto exchange over

0:19:34.560 --> 0:19:38.840
<v Speaker 6>in that country. So he was charged under with foreign bribery,

0:19:39.800 --> 0:19:43.240
<v Speaker 6>but the penalty for that is a lot lower than

0:19:44.119 --> 0:19:48.320
<v Speaker 6>the penalties he is facing in the fraud charges. And

0:19:49.000 --> 0:19:51.800
<v Speaker 6>I will make the note that that foreign bribery charge

0:19:52.040 --> 0:19:54.520
<v Speaker 6>is one of the offenses that he is challenging and

0:19:55.080 --> 0:19:56.120
<v Speaker 6>arguing is invalid.

0:19:57.000 --> 0:19:59.760
<v Speaker 3>All right, well, thank you so much Eva for joining

0:19:59.840 --> 0:20:02.280
<v Speaker 3>us to run through all of the details there. That

0:20:02.359 --> 0:20:05.720
<v Speaker 3>was Ava. Benny Morrison, Bloomberg News Legal reporter, breaking down

0:20:05.760 --> 0:20:08.120
<v Speaker 3>everything you need to know about the latest with Sam

0:20:08.119 --> 0:20:11.480
<v Speaker 3>Bankman Fried and the FTX case. I'm Madison Mills in

0:20:11.560 --> 0:20:14.160
<v Speaker 3>for June Brasso, coming up moron Crypto