The Rise and Fall of Sam Bankman-Fried: A Deep Dive into the Alameda Research Scandal and Cryptocurrency Fraud

2023-11-03 00:12:14

The money fueled venture trading and investments by his investment firm, Alameda Research, whose borrowings from the platform reached up to about $14 billion. “Find him guilty,” Danielle Sassoon, representative of Manhattan federal prosecutor Damian Williams, said in the morning.

Read also: Sam Bankman-Fried, king of cryptos and alternative accounting

An appetite for greatness

She described him as a “talented boss”, “ambitious”, who “amazed” the public, the press and even the elected representatives of Congress, who auditioned him three times. “He is someone who wanted to become president of the United States,” she recalled.

Consumed by his appetite for grandeur, he wanted to make FTX the first global cryptocurrency exchange platform, according to her. In his race, “he wanted to spend billions taken from his clients’ accounts to gain power and relationships,” said the deputy prosecutor. “He had the arrogance to think he could commit fraud and get away with it.”

“SBF” admitted, at the hearing, to “big errors”, but always denied knowingly breaking the law. His lawyer portrayed him as a young entrepreneur lacking experience, who had acted in good faith.

Also read: Crypto master Sam Bankman-Fried seen from the inside

To exonerate the accused, “you would have to believe that he understood nothing” about what was happening within his own companies, another deputy prosecutor told the jury at the hearing, Nicolas Roos. “You’ve been watching this whole trial and you know none of it is true.” “Now it’s up to you to decide who to believe,” federal judge Lewis Kaplan told the 12 jurors, before they retired to deliberate around 7:15 p.m. GMT on Thursday.

Within hours, they delivered an unsurprising verdict.

The “SBF” affair began a year ago, when the media CoinDesk revealed that a considerable part of Alameda’s assets consisted of a cryptocurrency created by FTX, FTT. The revelation caused the collapse of this digital currency, and the “SBF” empire with it. Extradited from the Bahamas, where FTX’s headquarters were located, the young thirty-year-old (now 31 years old), whose fortune had evaporated, was charged in mid-December with fraud and criminal conspiracy.

Read also: Cryptos: Sam Bankman-Fried, the judges and the box worth (maybe) 30 billion

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