Sam Bankman-Fried convicted of fraud amid crypto industry turmoil By Investing.com
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Former FTX co-founder Sam Bankman-Fried has been convicted on seven counts of fraud and money laundering, marking a significant turn in the cryptocurrency industry’s quest for legitimacy. The conviction, which took place on November 2, 2023, has left investors like Alfred Lin of Sequoia Capital expressing feelings of being deliberately misled.
The downfall of Bankman-Fried is a sharp contrast to his once-celebrated status in the finance world. Since 2009, despite the crypto industry’s challenges with illicit trading and business failures, figures like Bankman-Fried were seen as potential harbingers of legitimacy. His ventures attracted heavyweight backers such as Tiger Global, Singapore’s Temasek, and the Ontario Teachers’ Pension Plan.
The collapse of FTX in 2022 was a significant blow to the industry, leading to a crisis that saw major cryptocurrencies like bitcoin and ether lose over half their value. This event was part of a series of failures which included Terraform Labs and Three Arrows Capital. In response to these upheavals, 2023 saw an increase in oversight from lawmakers and regulators aiming to stabilize the sector.
With Bankman-Fried now facing a possible lengthy jail term, discussions are underway about what the future holds for cryptocurrency. The industry might continue striving for acceptance within mainstream finance or could revert to its earlier image as a niche market.
FTX had previously secured high-profile endorsements, including those from Major League Baseball and actor Larry David. The case against Bankman-Fried has drawn comments from various legal and financial experts, including US attorney Damian Williams and John Reed Stark of the SEC. Additionally, Charley Cooper, former CFTC chief, and Charles Storry from Phuture have weighed in on the implications for the crypto industry.
The broader crypto landscape continues to evolve with mixed developments. While Prime Minister Philip Davis had supported FTX before its downfall, major exchanges like Coinbase (NASDAQ:) and Binance are now facing legal challenges from the SEC and CFTC. Meanwhile, PayPal (NASDAQ:) has launched a US dollar-pegged crypto token, and BlackRock (NYSE:) is seeking SEC approval for a bitcoin ETF—a type of product that SEC chair Gary Gensler has thus far resisted approving.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Former FTX co-founder Sam Bankman-Fried has been convicted on seven counts of fraud and money laundering, marking a significant turn in the cryptocurrency industry’s quest for legitimacy. The conviction, which took place on November 2, 2023, has left investors like Alfred Lin of Sequoia Capital expressing feelings of being deliberately misled.
The downfall of Bankman-Fried is a sharp contrast to his once-celebrated status in the finance world. Since 2009, despite the crypto industry’s challenges with illicit trading and business failures, figures like Bankman-Fried were seen as potential harbingers of legitimacy. His ventures attracted heavyweight backers such as Tiger Global, Singapore’s Temasek, and the Ontario Teachers’ Pension Plan.
The collapse of FTX in 2022 was a significant blow to the industry, leading to a crisis that saw major cryptocurrencies like bitcoin and ether lose over half their value. This event was part of a series of failures which included Terraform Labs and Three Arrows Capital. In response to these upheavals, 2023 saw an increase in oversight from lawmakers and regulators aiming to stabilize the sector.
With Bankman-Fried now facing a possible lengthy jail term, discussions are underway about what the future holds for cryptocurrency. The industry might continue striving for acceptance within mainstream finance or could revert to its earlier image as a niche market.
FTX had previously secured high-profile endorsements, including those from Major League Baseball and actor Larry David. The case against Bankman-Fried has drawn comments from various legal and financial experts, including US attorney Damian Williams and John Reed Stark of the SEC. Additionally, Charley Cooper, former CFTC chief, and Charles Storry from Phuture have weighed in on the implications for the crypto industry.
The broader crypto landscape continues to evolve with mixed developments. While Prime Minister Philip Davis had supported FTX before its downfall, major exchanges like Coinbase (NASDAQ:) and Binance are now facing legal challenges from the SEC and CFTC. Meanwhile, PayPal (NASDAQ:) has launched a US dollar-pegged crypto token, and BlackRock (NYSE:) is seeking SEC approval for a bitcoin ETF—a type of product that SEC chair Gary Gensler has thus far resisted approving.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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