FTX Founder to Face Jail Time: Shocking Revelations in Crypto Fraud Case - COINTURK NEWS
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FTX Founder to Face Jail Time: Shocking Revelations in Crypto Fraud Case

9:23 pm (63 days ago)
October 2, 2023

Crypto markets have endured a difficult two years, leaving investors with losses exceeding 90%. One reason behind this is the exploitation of the sector by crypto start-up investment firms. These firms grew the market with crypto loans and then destroyed it with sudden bankruptcies. SBF was one of them.

FTX Founder to Face Jail Time

Cryptocurrency investors are closely following the FTX case ahead of the upcoming trial. Stark, a former SEC executive whose opinions we frequently publish, seems confident that SBF will go to jail. He stated three reasons for this.

Everyone is Admitting Guilt

Caroline Ellison, the girlfriend of Alameda’s CEO and on-off partner of SBF, FTX co-founder Gary Wang, and FTX engineering director Nishad Sing, have all comfortably admitted and continue to admit to all the charges. Each witness will take the stand and testify how FTX defrauded its customers.

Stark also said:

“Most importantly, for the past year, these three informers, along with other informers, turncoats, and whistleblowers struggling to save their own skins, have been providing the prosecution with a roadmap of SBF’s alleged criminal activities; explaining the meaning of every document, spreadsheet, email, text, Signal chat, etc., and offering unprecedented insights, intuitions, and analyses from countless hours inside. The cooperation witness pool in the SBF case is unparalleled in a financial fraud case.”

$200 Million Spent

John J. Ray III, an experienced restructuring expert who served as FTX’s CEO for less than a month, testified before Congress and revealed that SBF spent a whopping $200 million to expose its crimes. There is so much information and evidence that even SBF’s powerful parents may not have the power to save him from this case.

John Ray said:

“I have over 40 years of legal and restructuring experience. I have served as the Restructuring Chair or CEO in many of the largest corporate bankruptcies in history. I have overseen situations involving allegations of criminal activity and misuse of duty (Enron). Almost every situation I have been involved in has been characterized by some kind of failure in internal controls, regulatory compliance, human resources, or system integrity. Never in my career have I seen such a complete failure in corporate controls and such a lack of reliable financial information as I have seen here. From the endangerment of system integrity to the flawed regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, uninformed, and potentially dangerous individuals, this situation is unprecedented.”

Loose Lips Sink Ships

SBF confessed to numerous crimes after the collapse of FTX. There are strong reasons why most defense attorneys advise their clients to remain silent. Simply put, defendants never know exactly what evidence the government has, and any statement from a defendant (excluding discussions with an attorney) can hinder the attorney from presenting the best possible defense.

SBF said so much that it likely caused his attorney to lose faith in humanity. Everything he said will be used as evidence against him. SBF launched an unusually epic public relations campaign, refusing to remain silent, from Twitter Spaces conversations to CNBC interviews and crypto podcasts.

He revealed everything from selling synthetic cryptocurrencies to customers to using customer assets for the company.

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