That Sam Bankman-Fried is sentenced to such a long prison term (25 years) should not only be seen as an assessment of his individual guilt - but also as an attempt to get the crypto industry to straighten up. That's what lawyer Howard Fischer writes in an analysis in CNN.
"Crypto advocates have long chafed at regulators' efforts to force them within the confines of the traditional financial system," writes Fischer.
But despite the FTX scandal, the industry has never had a stronger position, writes the BBC's Joe Tidy. One bitcoin was worth about $16,000 when Bankman-Fried was arrested. Today, it is worth over $70,000, largely thanks to American financial giants who have invested hundreds of billions of dollars in the currency.
“The price people are willing to pay for bitcoins is seen as a barometer of the health of the entire crypto industry. And since the verdict came down today, the green line (which represents the value ed. note) has barely moved," writes Tidy.
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Crypto king Bankman-Fried gets 25 years in prison
FTX founder Sam Bankman-Fried's prison sentence is set at 25 years. This is announced by a federal judge in New York on Thursday, according to several media.
Prosecutors had sought 40-50 years in prison, while Bankman-Fried's lawyers argued for six years.
In November last year, the 32-year-old was convicted on seven counts of fraud and money laundering, among other things. The ruling came almost exactly a year after the crypto exchange collapsed, after an $8 billion hole in the balance sheet was discovered. Bankman-Fried was convicted of stealing money from FTX customers' accounts.
- I made a series of bad decisions, says Bankman-Fried in the courtroom, according to the Financial Times.
The judge began Thursday's process by stating that the FTX mess has led to losses totaling $11 billion for customers, investors and lenders, writes Reuters. Prosecutors have previously described it as one of the largest financial frauds in US history.
Clarification: A push notice and an earlier version of the article incorrectly stated the length of the prison sentence, which was reported by several media outlets. Omni Ekonomi regrets the incorrect information.
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