New York, March 28 – Sam Bankman-Fried, the founder and former CEO of the cryptocurrency exchange FTX, has been sentenced to 25 years in prison for fraud. The decision was made by the Manhattan District Court in New York.
$8 Billion Fraud
Bankman-Fried was found guilty on seven counts of an indictment, including fraud and conspiracy. According to the court, he participated in one of the largest frauds in US history, in which FTX clients lost $8 billion.
Embezzlement and Exchange Collapse
Bankman-Fried was accused of embezzling client funds, which he used to finance other companies and purchase real estate. The cryptocurrency exchange FTX operated from 2019, but in November 2022 it filed for bankruptcy protection. The reason was the collapse of the exchange, which occurred after traders withdrew $6 billion from it within 72 hours.
Resignation and Arrest
Following the collapse of the exchange, Bankman-Fried resigned as CEO of FTX. In December 2022, he was arrested in the Bahamas, where FTX was headquartered.
Consequences for the Crypto Market
The conviction of Bankman-Fried is a significant event for the cryptocurrency market. It underscores the need for regulation of cryptocurrencies and raises awareness of the risks associated with investing in them.
Photo: Youtube
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