Two years ago, Sam Bankman-Fried was a 30-year-old billionaire who lived in a luxury apartment in the Bahamas worth $35 million. He was living a happy life by running a global business as well as partying with friends. world’s most valuable cryptocurrencyplatform. Now, two years later, he is being held at the Metropolitan Correctional Center in Brooklyn, New York, waiting for the judge to announce his sentence.
Cryptocurrency platform FTX founded by Bankman Fred announcedbankruptcyHe was also prosecuted for financial crimes for defrauding customers of 8 billion RMB. In November last year, a jury convicted him on all seven counts. Federal prosecutors sought a prison sentence of 40 to 50 years, and Manhattan federal court Judge Lewis Kaplan sentenced him to 25 years in prison on the 28th.
Damien Williams, the U.S. Attorney for the Southern District of New York, described the case as the largest financial fraud in American history. Bankmanfred, who was originally considered the god of the cryptocurrency circle, had a personal net worth of 26 billion before falling from the altar.
In 2017, while working at quantitative trading company “Jane Street”BitcoinPricing website coinmarketcap.com found that the price of digital currencies sometimes fluctuated by as much as 60%, so they intuitively began buying and selling arbitrage. He said in an interview with CNBC news channel in 2022: “It’s an easy result.” BankmanFred found that Bitcoin’s price differentials were most profitable in South Korea, and the “Kimchi Premium” phenomenon made Bitcoin more profitable. South Korea. Much higher than foreign exchange prices.
Bankman Fred founded the currency hedge fund company Alameda Research, which sometimes made millions in a single day from Bitcoin trading. He became rich easily as soon as he started his business, allowing him to co-found FTX.com, an international cryptocurrency exchange platform, in April 2019 and receive $2 billion in venture capital.
The FTX trademark appeared in venues such as Formula One and Miami basketball games, and Bankman Fred claimed that Haikou would one day buy out Goldman Sachs. He gradually became active in Washington and became a significant donor to the Democratic Party.
The “Crypto Winter” of 2022 caused massive losses to hedge funds and lending institutions. Bankmanfred claimed that the company was performing well, but in reality Alameda had relied on borrowing to support it, and both lending institutions went bankrupt. Bankmanfred subsequently embezzled FTX customer funds.
Finance (TagstoTranslate) Currency (T) Bitcoin (T) Bankruptcy