At the close of a one-month-trial, Sam Bankman-Fried, who was previously popular in the Crypto world for being a crypto icon, has just been convicted on eight counts of fraud and money laundering. It is really shocking because, the 31 years former billionaire is still considered as a role model of Cryptocurrency world.
The case dates back to the arrest of Sam Bankman-Fried after the collapse of FTX exchange in 2022 that resulted to its filing for bankruptcy and took only a short period of five hours of deliberation among other parties. This has led to the possibility that Sam Bankman-Fried will have to spend several years in jail, a sentence hearing being slated for March 28 of 2017.
Accusations against Sam Bankman-Fried
US attorney Damian Williams was not diplomatic about it. He said that Bankman-Fried had committed an “America scam”. Damian said that this scam was a billion-dollar plan meant to crown Bankman-Fried the Prince of Crypto. Bankman-Fried was charged with defrauding investors and financial institutions in seven counts which included fraud and money laundering conspiracy.
Sam Bankman-Fried kept pleading innocent throughout the trial, however, his defense crumbled after his three former associates including his ex-partner Caroline Ellison agreed to give evidence against him and get a reduction for their jail terms.
Sam Bankman-Fried Defense
However, as the prosecution pointed out in its defense, Crypto trading company, Alameda Research, received deposits on behalf of FTX clients who were not willing to transact with them because they considered them too risky. In the end, it was the allegations of misuse of property that brought down FTX.
Two of these offenses attract sentences not exceeding four or five years imprisonment, although with little chances of the judge going for the maximum term.
The Cryptocurrency Future
This trial has generated much interest and it implies a possible change in the entire cryptocurrency sphere. The Crypto has been clouded by fraud and criminal activities, leading some states in America to view it as illicit. The collapse of Bankman fried from “crypto king” to felon is an indication of the challenges facing the industry.
Specialized crypto laws have not been passed by the US congress to date, so expect lots of arbitration to unfold in future to come. More cases are expected to make their way into the law courts. Regulatory entities such as the SEC and CFTC are expected to sue companies or people involved in the scandal. These and other similar cases will define the future of the cryptocurrency on questions of responsibility, legality, etc.
Conclusion
Many in the Crypto world are waiting for the sentence and other outcomes of this guilty finding. The story of rise and rapid decline of sam bankman fried is a story of warning against those who seek to take advantage of current uncertainties that continue to haunt this dynamic environment.
Also Read
Workplace Working Conditions To Be Maintained High – Demand Pharmacy Staff
