Sam Bankman-Fried convicted for massive FTX fraud, in stark reminder of risks of crypto trading
theconversation.comIt is not just crypto tokens that have spectacular downfalls. So can crypto personalities. Sam Bankman-Fried founded FTX, one of the world’s largest exchanges for so-called cryptocurrencies, which collapsed last year owing billions of dollars.
Now he has gone from being hailed as potentially the world’s first trillionaire to a lengthy term in prison. After a month-long trial, a New York jury took less than five hours to find him guilty on seven counts of fraud and money laundering.
Bankman-Fried’s conviction highlights the risks of crypto markets, where people trade tokens with no fundamental value via hugely complex and poorly regulated financial machinery.
The Australian government is currently considering how to protect consumers in such markets. Treasury has commenced a consultation process.
