Sam Bankman-Fried, founder of FTX, and Changpeng Zhao, founder of Binance, were both handed 25 years and 4 months in jail, respectively.
Two former crypto industry heavyweights, Changpeng Zhao of Binance and Sam Bankman Fried of FTX, have lately been subject to legal challenges and jail terms, demonstrating the unpredictable character of the market. The long-running conflict between the crypto giants apparently came to a disappointing conclusion when the court handed down sentences of 25 years for Bankman Fried and 4 months for Zhao.
The proceedings involving Bankman-Fried and Zhao bring to light the “dark and criminal corners of crypto,” according to Braden Perry, a former senior trial counsel of the CFTC. Furthermore, he stated,
“When examining CZ and SBF, it becomes evident that despite their distinct circumstances, both individuals achieved prominence in the cryptocurrency industry…The respective accusations represent various facets of the “dark” and “illicit” sides of cryptocurrency: CZ’s case seems to centre on regulatory and compliance issues, while SBF’s case rests on outright financial fraud and deceit.
Among blockchain industry heavyweights, Bankman-Fried and Zhao were both around for a long time. Because they made the crypto environment easier to understand, they were well-liked by those who aspired to be crypto miners.
After FTX, the industry leader, went bankrupt in 2022, a long crypto winter ensued. When the SEC sued Binance in 2023 for allegedly selling unregistered securities, the biggest cryptocurrency exchange in the world faced regulatory hurdles as well.
A jury ultimately found the FTX founder guilty on seven counts, including stealing client funds, notwithstanding his initial plea of not guilty. The creator of Binance was found guilty of securities law violations three weeks later; he subsequently pleaded guilty and resigned as CEO of the exchange. Then, for separate reasons, Bankman-Fried and Zhao were both incarcerated.
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