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Comeuppance; justice; restitution. These are the phrases that may be aptly used to explain at present’s sentencing of Sam Bankman-Fried (SBF) for perpetrating the most important monetary rip-off within the US since Bernie Madoff’s Ponzi scheme, ripping hundreds of consumers of the defunct crypto change FTX within the course of.
For the good thing about those that won’t remember, Sam Bankman-Fried, the previous CEO of FTX, was basically working a Ponzi scheme to the good thing about his private buying and selling arm, Alameda Analysis. In essence, FTX repeatedly transferred its native FTT tokens to Alameda at dirt-cheap costs whereas, on the similar time, the change inflated FTT’s worth by using part of its revenues to burn a fraction of the token’s circulating provide. Alameda then used its FTT tokens as collateral to borrow consumer funds from FTX, which have been then used to put leveraged bets. This gig ended as soon as Alameda’s publicity to the FTT token turned public data, prompting Binance to begin dumping its personal FTT stash, collapsing the token’s value within the course of. This resulted in a financial institution run as shoppers tried to exit the Ponzi scheme-promoting change, ultimately leading to FTX declaring chapter in November 2022.
Figured I would mud off some lesser recognized info about SBF given at present is his sentencing 🧵
1. In January ’22, Sam market offered $75M of stETH, main to an enormous depeg occasion which set off the Celsius bankrun and the daisy chain of occasions that included the blow-up of 3AC pic.twitter.com/BGHem10yhz
— Conor (@jconorgrogan) March 28, 2024
The above thread particulars SBF’s machinations intimately. After the collapse of FTX, Sam Bankman-Fried initially escaped to the Bahamas, from the place he was extradited again to the US to face plenty of expenses associated to wire and securities fraud.
Sam Bankman-Fried Sentenced to 25 Years in Jail
CORRECTED-FTX FOUNDER SAM BANKMAN-FRIED SENTENCED IN NEW YORK TO 25 YEARS (NOT 20) IN PRISON FOR MULTI-BILLION DOLLAR FRAUD
— *Walter Bloomberg (@DeItaone) March 28, 2024
This brings us to the crux of the matter. Sam Bankman-Fried is now heading to jail for 25 years. The decide has additionally ordered the previous CEO of FTX to give up over $11 billion. The cherry on high, nonetheless, is the next remarks by the presiding decide:
“When not mendacity, he was evasive, hair splitting, making an attempt to get the prosecutors to rephrase questions for him. I have been doing this job for shut for 30 years. I’ve by no means seen a efficiency like that.”
All through the trial, Sam Bankman-Fried maintained that he didn’t do something incorrect deliberately, as a substitute blaming “refined analytics” and the incompetence of the junior employees for shedding monitor of Alameda’s FTT-based leverage.
SBF going to HODL in jail for 25 years
— Thomas Thornton (@TommyThornton) March 28, 2024
Do be aware that, courtesy of the present bullish wave permeating by way of the broader crypto sphere, all FTX collectors have been made complete by the defunct crypto change’s property, which was in a position to get well quite a lot of crypto property that have been initially deemed misplaced endlessly. This is without doubt one of the explanation why Sam Bankman-Fried has been awarded a a lot decrease sentence than Bernie Madoff’s 150 years in jail.
