Hi, this is Wayne again with a topic “Sam Bankman-Fried’s sentencing ends a chapter of the FTX saga | TechCrunch Minute”.
Former crypto King and toast of the political circuit Sam bankman freed has been sentenced to 25 years in prison. Let’S get into it now. Last year, in the wake of the implosion of crypto exchange, FTX, its former CEO Sam bankman freed, was found guilty across seven criminal accounts for fraud and moneya laundering things you don’t want to be in trouble for, in the wake of his court loss, the former crypto Powerhouse Adventure darling could have faced more than 100 years behind bars, so from one perspective only 25. Isn’T that bad? So how did we get here? Well, back in late 2022, a balance sheet, disclosing a portion of ftxs sister company and trading from alam’s balance sheet was made public and it made it very clear that the house token of FTX ftt was a huge part of his assets that kicked off a panic. Concerning ftxs liquidity, and if it was something more akin to a house of cards than the massive and seemingly endlessly wealthy crypto Empire, that was made out to be eventually, the company filed for bankruptcy, which was led by newly installed management, and that process was a little Bit messy as techren wrote at the time we learned that the problem was much much bigger than many originally thought.
The executives behind the now bankrupt, FTX in Alam, allegedly stole over8 billion in customer funds. Bankman freed later went on to say that the funds weren’t stolen they were loaned to Alam, but no one really bought it. The doj back back in December of 2022, stated that bankman freed knowingly defrauded FTX customers by misusing their deposits to invest in other companies and pay off lenders and expenses, and he got busted for it. In a sense, the news of his sentence is only so big.
We knew that he had been found guilty. We knew that FTX was kaput and trying to return as great a portion of consumer funds as possible and even more to the point. The crypto industry itself has already moved on and sure you could argue that the implosion of FTX was one of the key drivers of the latest crypto winter, but those Frosty conditions are already behind us now, with the value of major crypto tokens. Spiking trading volumes rising and excitement returning to web 3.
The fact that one of its Ur, while leaders is going in the can for Two Dozen Years and change, feels very much like a blast from the past. Not that crypto as an industry is entirely Out of the Woods. There are still big legal and Regulatory questions to answer, but the news this week puts cap on what was one of its more interesting sagas and the bars in front of one of its former leaders. I am just sad that a man who helped make cargo shorts and flip-flops acceptable business attire wound up going to prison because it makes the rest of us who look like crap. Look bad .