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2022 was a disastrous year for nearly all cryptocurrency investors, resulting in colossal financial losses. Even though the market trend has turned bullish today, victims of the FTX collapse have yet to see their losses recouped. The founder of FTX, SBF, who triggered the 2022 low for BTC, is justly criticized by the current CEO.
Crypto Fraudster
SBF, who will be remembered as one of the biggest crypto fraudsters, was emboldened by the lack of regulation in crypto to the point that he facilitated the trade of non-existent cryptocurrencies on the FTX exchange. Where was the customers’ money? It was squandered through high-leverage transactions by the side company Alameda, in generous political donations, and in SBF’s luxury expenditures and unnecessary investments.
John Ray, the current president of the FTX crypto exchange, described SBF’s “no loss” statements during the catastrophic collapse in 2022 as “reckless” and “incorrect,” according to the lawsuit.
“I assure the court that each of these statements is categorically, dispassionately, and clearly incorrect. Customers would never have been in the same position had they not crossed paths with Mr. Bankman-Fried and his so-called ‘sacrifice’ mentality.”
Ray also stated in the file that when he took over FTX, there were only 105 BTC left, with a debt of nearly 100,000 BTC to customers.
Bankman-Fried’s defense team argued against the 40 to 50 years of prison proposed by prosecutors, claiming that there was “never a loss” in FTX’s collapse, as creditors’ claims would be fully paid through bankruptcy proceedings.
FTX Hearing
The absurd defense by SBF’s lawyers shows how desperate his situation is. With all co-conspirators turning against SBF, this outcome was anticipated. Bankman-Fried’s lawyers believe a prison sentence of 63-78 months would suffice. However, Sam’s release from prison won’t be that easy.
Last year, Bankman-Fried was found guilty by a jury as one of the biggest financial fraudsters in US history. On March 28, it will be revealed how many years SBF will be sentenced to prison. While most investors feared in November 2022 that he would avoid punishment by not returning to the US, it’s now just days until we hear that SBF will likely spend his life in prison. Indeed, in a poll we conducted on November 16, 2022, 51% of participants believed he would not be arrested.
