Sam Bankman-Fried
Crypto Trends & News

Sam Bankman-Fried, the ‘King Of Cryptocurrencies’: a millionaire story of four years, greed… and 110 years in prison And The fall

The word ‘cryptocurrency’ sets off all the alarms: on the one hand, those of greed; on the other hand, those of caution. Of the second we have the example of the European Parliament, which last April approved the first EU legislative text to ensure the traceability of transfers of crypto assets such as bitcoin and electronic money tokens. Apart from these, there are many more examples of greed.

The latest is that of Sam Bankman-Fried, the founder of FTX. A jury in Manhattan (New York) has just found him guilty of the seven crimes of fraud and money laundering with which he was charged: two counts of fraud and five of conspiracy.

Sam Bankman-Fried: Up to 110 Years in Prison

The jury finds him guilty of stealing billions of dollars from his cryptocurrency platform’s customers. FTX is considered one of the largest financial frauds in the history of the United States. According to prosecutors, Bankman-Fried looted almost $10 billion from its users.

The twelve members of the popular jury rejected Bankman-Fried’s claim during his testimony that he never committed fraud or intended to deceive clients. Now the greedy founder of FTX faces a maximum sentence of up to 110 years in prison. The reading of the sentence has been set for March 28, 2024.

In the opinion of the lawyer for the southern district of New York, Damian Williams, what happened is that Bankman-Fried, now 31 years old, “perpetrated one of the largest financial frauds in the history of the United States, a multimillion-dollar scheme designed to turn “the king of cryptocurrencies.”

Greed in Shorts And T-shirts

The FTX cryptocurrency platform was born in 2019, when it was 27 years old, and became the second-largest cryptocurrency exchange in the world. In 2021, at its peak, it had over a million users. In those good times, the company even advertised in the middle of the Super Bowl, and he was called the “wunderkind” of Wall Street.

Bankman-Fried proudly showed off his informal style with the magnetism that only money gives. He went to meetings, sets, and parties with his hair curly and disheveled, and instead of suits and ties, he wore shorts and t-shirts. But the greed, although informal, was the same as that of any aggressive executive on the most classic Wall Street.

Forbes magazine estimated the young man’s fortune at $26 billion. He covets to amass money at any price and power at the same time; he even dreams of his candidacy for the presidency of the United States.

A Millionaire Story of Only Four Years

The Manhattan jury’s verdict was announced just a year after FTX declared bankruptcy and shocked the financial markets. It was November 14, 2022.

Bankman-Fried established his cryptocurrency platform in 2019 in Antigua and Barbuda and was based in the Bahamas, where he lived in a luxurious villa surrounded by young and rich friends like him.

After an accelerated race to infinity and beyond money, the beginning of the end arrived in August 2022. The US Federal Deposit Insurance Corporation issued a cease-and-desist order to FTX for making “false and misleading representations” on deposits covered by your insurance. Although this was not clear, it was the first public sign that “something smelled rotten” in the Bankman-Fried empire.

In September it won the auction to acquire the digital assets of the bankrupt cryptocurrency brokerage Voyager Digital ($1.42 billion), but a few days later the president of FTX.US, Brett Harrison, announced that he was leaving his active role and remaining as an adviser. In October, FTX was already under investigation in Texas for allegedly selling unregistered securities.

Another Trial Awaits Sam Bankman-Fried in March

After this sentence, which has found him guilty of seven crimes, Bankman-Fried joins the list of the biggest and most famous fraudsters in the United States. His name is already next to that of Bernie Madoff, who defrauded thousands of clients with his Ponzi scheme, and Jordan Belfort, the ‘Wolf of Wall Street’, both with notable convictions for the largest financial crimes.

Bankman-Fried’s nightmare has only just begun, not only because of the years in prison that awaits him but also because in March 2024 he must face another similar trial in which he is accused of fraud by the Securities and Exchange Commission.

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