The crypto community on X (formerly Twitter) was abuzz with reactions following the guilty verdict delivered in the criminal trial of Sam Bankman-Fried, which came shortly before 8 p.m. ET in New York.
What Happened: Crypto analyst and venture capitalist Adam Cochran warned others in the industry, stating, “Should let the SBF trial be a clear warning for other operators in crypto. If you play with people’s funds, they’ll get you in the end, and the first one to come forward gets the least punishment.”
Cochran noted that Bankman-Fried’s fate was sealed by the damning testimony of former colleagues, pointing out that former Alameda CEO Caroline Ellison would face minimal jail time while the FTX co-founder “likely faces life in prison.”
He also questioned the trustworthiness of co-conspirators in such high-stakes situations, asking, “Do you really trust your co-conspirators when it’s all on the line? Like, would you really trust Justin Sun not to rat you out?”
Meanwhile, convicted felon Martin Shkreli, also known as “Pharma Bro,” had a more measured response. Contrary to expectations that he would celebrate the news, Shkreli expressed sympathy, saying, “I feel bad for him. There is no victory for anyone here.”
In light of Bankman-Fried’s trial coming to a verdict, investor Mike Novogratz emphasized that Bitcoin and the entire cryptocurrency movement were not centered around one individual. Novogratz said, “Bitcoin and the whole cryptocurrency moment has never been about one person. There’s something symbolic about this trial ending right now as crypto gets fresh legs.”
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Why It Matters: Bankman-Fried, the 31-year-old son of two Stanford legal scholars and a graduate of the Massachusetts Institute of Technology, has been convicted of wire fraud and conspiracy to commit wire fraud against FTX customers and Alameda Research lenders. Additionally, he was found guilty of conspiracy to commit securities fraud and conspiracy to commit commodities fraud against FTX investors, as well as conspiracy to commit money laundering.
The charges against Bankman-Fried are connected to the collapse of FTX and its sister hedge fund, Alameda, late last year. Commenting on the verdict, Damian Williams, the U.S. attorney for the Southern District of New York, characterized Bankman-Fried’s actions as “one of the biggest financial frauds in American history.” Williams further emphasized that while the cryptocurrency industry and its players, including Bankman-Fried, may seem new, such fraud and corruption are age-old practices that society has no tolerance for.
Price Action: At the time of writing, Bitcoin BTC/USD was trading at $34,680.91, down 1.76% in the last 24 hours, according to Benzinga Pro.
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Sam Bankman-Fried. Image created using AI via MidJourney
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