Just a year ago Sam Bankman-Fried He occupied the covers of the most respected financial magazines. Child prodigy cryptocurrencies founded and managed FTXis one of the giants that dominate the developing technology sector. “Will there be next Warren Buffet‘?” asked ‘Fortune.’ His influence led him to rub shoulders with movie stars and politicians such as Bill Clinton and Tony Blair.
This Tuesday, the young virtual currency magnate will leave the market prison where he was held for seven weeks to attend the start of his mission judgment. There are up to seven federal charges against him; These include accusations. complo And fake with bankruptcy from FTX and also money laundering.
The process is expected to take six weeks and will serve to expose the company’s risk-taking and deceptive advertising practices aimed at growing its business.
A court in Manhattan, New York, will today begin selecting the popular jury that must decide. SBF (as is known) he is guilty. “I deeply regret putting us in this situation and my role in it,” he told FTX employees following his collapse. “I messed up.”
Rise of an empire
Bankman-Fried built an empire in just two years. In 2019, he founded the company FTX, a cryptocurrency trading platform based in the Bahamas, and capitalized on the growing popularity of this market, establishing itself as one of its main players and reaching a valuation of $32 billion. luck The young businessman is also the head of a crypto investment firm Alameda Researchreached a maximum of 26.5 billion.
SBF, who became a media star, also tried to win political influence. That’s when FTX would have illegally diverted more than $100 million from its customers. donations. Thus, he donated 5.2 million to the campaign Joe Biden for presidential elections United States of America He was the second-largest donor to Democratic politicians in the 2020 midterm elections. Some Republicans could benefit from this, too.
“(SBF) leveraged this influence to pressure Congress and regulatory agencies to support laws and regulations that it believed would make it easier for FTX to continue accepting customer deposits and growing,” the statement said. blame.
industry collapse
However, 2022 has been a dark year for the industry. In addition to the explosion of failed promises and illegal activities, cryptocurrencies have been hit hard by asset collapses. Moon And Soil In May, this created a carryover effect. Turbulence led to lender creation declare bankruptcy and shortly after in November, FTX followed suit. Third trading platform in a few days crypto assets The world’s largest company collapsed and nearly $9 billion of its customers’ investments evaporated. It is estimated that FTX may have up to one million creditors worldwide.
Bankman-Fried agrees to extradition from Bahamas to US United States of America. In addition to the lawsuit that began today, the former financial whiz kid has been charged by the U.S. Securities and Exchange Commission (SEC) with conspiracy to commit fraud against investors.
Therefore, Bankman-Fried’s case is also seen as the case of the rest of the cryptocurrency industry. “(SBF) has become a symbol arrogance “Rampant trading and dubious dealings have turned cryptocurrencies into a multibillion-dollar industry during the pandemic,” says ‘The New York Times’.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.