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🦄 Syn Yew 杨信有

#creditbytes Investment Framework | Fintech + Algorithms | Investment Deal Flow

杨信有 is a startup investor, financier, and public speaker with a background in credit risks, corporate and investment banking.

He holds an MBA in Banking and Finance as well as a Bachelor of Accounting from Nanyang Technological University Singapore.

Prior to his current roles, 杨信有 served in various capacities at DBS Bank, including Head of Credit Training, Senior Credit Risk Manager, Senior Banker in the Middle East, Vice President, Senior Banker in the Financial Institutions Group, and Assistant General Manager in India.

He also gained experience as a Senior Accountant at PSA Corporation Limited.

His professional expertise lies in credit risks, corporate and investment banking, making him a valuable resource in the finance industry.

Highlights

Dec 24 · linkedin

When is $250m not worth $250m?

When it is the bail for a #crypto #ponzi mastermind, #SBF of #FTX and #Alameda.

The headlines proclaimed that $250m is the "largest" bail. But just like the underlying #cryptocurrencies, the amount is likely to be highly inflated.

Let's focus on the $250m bail.

2 facts are clearly stated in the release document.

  1. Amount at risk The actual amount put on risk is only from $4m house of SBF's parents.

His parents are unlikely to have sufficient networth paying up the remaining $246m if #SBF decides to jump bail.

At $4m, the collateral is only 1.6% the total bail, far less than the typical 10% required for bail bonds.

  1. Other sureties or guarantors The condition allows for at persons that are not family member of #SBF to act as sureties or guarantors for the bail amount. But only by 5 Jan 2023.

Implication 1: From a pragmatic perspective, between the day #SBF was released to his parents on 22 Dec 2022 to 5 Jan 2023, if he jumps bail, the government will stand to lose $246m. DOJ knows it.

So this is the equivalent of grounding the kid against his parents' words that he will not be allowed out of his room.

Is it a consideration in the spirit of the Christmas?

Implication 2: If #DOJ is serious about making up for the shortfall of $246m by 5 Jan 2023, the person that will stand as surety should have assets worth at least $246m.

Under this situation, who among the quarter-billionaires are likely to stand in as sureties?

And if no one is willing to put their $246m at risk in case he jumps bail, what will happen to the bail arrangement?

Send him to detention or remain at his room in his parents' house?

Do white collar criminals have it easier compared to the other criminals? Love to hear your views!

#cryptoexchange #fraud

#creditbytes Follow me 🦄 Syn Yew Y. for more #finance and #investment content.

🦄 Syn Yew 杨信有
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Singapore