Sam-Bankman

Sam Bankman-Fried found guilty while cryptocurrency faces scrutiny

After the legal proceedings and the presentation of evidence in founder of FTX, Sam Bankman-Fried's trial, the jury has found him guilty. He has committed seven counts of wire fraud and conspiracy to launder money.

Experts, at the beginning of the trial, assumed that the legal proceedings will be about examining and scrutinizing the entire cryptocurrency industry. However, as the trial progressed, it was evident that the primary focus of the legal proceedings was not on cryptocurrency itself but on Sam Bankman-Fried as an individual.

During the trial, Bankman-Fried admitted his lack of knowledge about cryptocurrency and financial regulation. The confession implied his amateurish approach. During the trial, the prosecution inquired about Sam Bankman-Fried's public image and the way he presented himself to the public.

In the discussion he has admitted that he intentionally maintained an manipulative appearance. This appearance was an ingenious psychological strategy that helped them to attract investors and traders. The unkempt appearance assured customers that he was capable and trustworthy in the cryptocurrency business.

The question still lingers whether this conviction will be associated with the entire cryptocurrency industry or if it will be attributed only to Bankman-Fried. The trial primarily revolved around the misappropriation of customers' funds.

The United States attorney for the Southern District of New York, Damian Williams emphasized that while the cryptocurrency industry is new, corruption and financial fraud are age-old problems. According to him, “Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the king of crypto – but while the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time.”

Despite the negative image portrayed by Bankman-Fried's actions, It hasn’t gone unnoticed that Bitcoin is still thriving. Not only that, the cryptocurrency market is also on the verge of regulatory approvals for exchange-traded funds.

According to many industry insiders and experts, Bankman-Fried doesn't represent the broader cryptocurrency community, and the incident does not broadly affect the crypto market. Bitcoin remains a valuable asset even after all the turmoil.

Though Bitcoin continues to gain in value and could serve as a long-term investment, the trial has caused divisions in the crypto community. According to some traders and investors, it is a distraction from the positive work happening in the industry. On the other hand, some consider it as a damaging blow to crypto's reputation.

Bankman-Fried's downfall has compelled authorities to take regulatory actions in the United States against crypto exchanges like Binance and Coinbase. To conclude, the trial of Sam Bankman-Fried did not put cryptocurrency itself on trial but rather highlighted the need for increased oversight and accountability in the industry.