Finance and Banking

The cryptocurrency market is starting to bounce back a year after the collapse of crypto exchange FTX and other big players in 2022 crushed prices, tarnished the industry and prompted a regulatory crackdown, Reuters reported. A jury in New York found Sam Bankman-Fried, former CEO of FTX, guilty of defrauding FTX's customers prior to its abrupt collapse in November 2022. He had pleaded not guilty and said that while he had mismanaged the company, he did not commit fraud. FTX was one in a series of industry meltdowns that sent bitcoin crashing to its lowest price since 2020. While the sector remains far from the investment fever pitch it hit in late 2021, bitcoin and other major tokens have enjoyed a rally in recent weeks as the expected end of central bank rate-hiking cycles draws cash back into high-risk assets. The crypto industry has also become focused on the prospect of new spot bitcoin exchange-traded funds (ETFs), which would throw open the market to more investors. Though none have been approved, several firms have filed for such a product.

Sam Bankman-Fried was found guilty on Thursday for his role in the collapse of crypto exchange FTX, CNN reported. After 15 days of testimony and about four and a half hours of deliberations, jurors returned a verdict that found him guilty on seven counts of fraud and conspiracy. Bankman-Fried looked sunken as the verdict was read out. After the jury was released, he stood, head bowed and shaking as his lawyer spoke in his ear. A few feet behind him, his parents stood watching. As Bankman-Fried was escorted out of the room, he turned back and smiled at his parents. His father, Joe Bankman, put his arm around his wife’s shoulders. As their son left the room, Barbara Fried broke down in tears. In remarks outside the courthouse, U.S. Attorney Damian Williams lauded the jury’s verdict, saying the government has “no patience” for fraud and corruption. “These players like Sam Bankman-Fried might be new, but this kind of fraud, this kind of corruption, is as old as time,” he said. But Bankman-Fried’s attorney said they were “disappointed.” The sentencing hearing date will be March 28, 2024. He faces up to 110 years in prison. Bankman-Fried was found guilty of stealing billions of dollars from accounts belonging to customers of his once-high-flying crypto exchange FTX. He was also found guilty of defrauding lenders to FTX’s sister company, hedge fund Alameda Research, which held FTX customer funds in a bank account.