Your Guide to Criminal Capitalism: How to Spot The Next FTX
By John Persinos
U.S. stock and bond markets are closed Friday, March 29, in observance of Good Friday. It'll be business as usual on Monday. In the meantime, now's an opportune time to step back for a "big picture" analysis.
Sam Bankman-Fried on March 28 was sentenced to 25 years in prison by Judge Lewis Kaplan, a year and a half after Bankman-Fried's crypto startup, FTX, suddenly exploded and crashed to the ground in spectacular fashion.
FTX, at one time the world's second-largest cryptocurrency exchange, filed for Chapter 11 bankruptcy protection in November 2022 after panicked customers withdrew billions from the exchange in only a few days, triggering a halt to withdrawals.
FTX's tousle-haired founder, Sam Bankman-Fried (aka SBF), had been glamorized in the financial media as a tech whizkid. Now he's the poster boy for crypto fraud. A prison sentence was virtually assured after a jury found Bankman-Fried guilty of seven federal counts of fraud and conspiracy in November 2023.
SBF used customer funds to prop up his trading business, Alameda Research. FTX's implosion caused the cancellation of a planned acquisition by rival cryptocurrency exchange Binance.
The FTX collapse was a global contagion that wiped out scores of individual investors. The company's bankruptcy petition lists more than 130 affiliates in countries, with more than 100,000 creditors and liabilities in the range of $10 billion to $50 billion.
Read More...
没有评论:
发表评论