SBF’s trial truth is one set to shape the future nature of the crypto industry and the criminals within the ecosystem. Ladies and gentlemen of the courtroom, welcome to Week 2 of what is undeniably the crypto trial of the century! As with anything people can have an opinion on, it’s time to ask a question that has been buzzing in the minds of many: Are you an SBF sympathizer?
In a world where cryptocurrencies and digital assets have reshaped the financial landscape, SBF has emerged as a polarizing figure. To some, he’s a visionary trailblazer, while to others, he’s a cunning manipulator of markets. Week 1 of the trial left many with more questions than answers, and now, as we step into the second chapter of this crypto legal standoff, crypto investors must confront their own biases and preconceptions.
John Deaton comes after Sam’s sympathizers
One man has already confronted his biases and preconceptions. John Deaton, an attorney and advocate for crypto, has criticized supporters of former FTX CEO Sam “SBF” Bankman-Fried during his ongoing crypto-related trials. Some prominent figures in the financial industry have had a soft spot for the man who caused billions of dollars in losses even before his trial began.
Deaton stated in a post on X (formerly Twitter) that those who characterize SBF as a well-intentioned individual who made mistakes do not qualify to manage people’s finances. He suggested that such sympathizers should not be considered for interviews on prestigious television programs such as 60 Minutes on CBS.
Some members of the crypto community are profoundly concerned about the alleged investor fraud allegations against SBF, while others attempt to portray him positively in the media. Even after FTX’s declaration of bankruptcy, SBF continued to participate in interviews and was frequently portrayed as a crypto hero, provoking resentment from the Web3 community.
The demise of FTX, a crypto futures exchange, may appear quite abstract to those who have never attempted to buy or sell digital currency on the platform. The next six weeks, however, will undoubtedly feel personal for the approximately one million customers who lost money there.
The conviction of Bankman-Fried will not immediately return billions to the accounts of disappointed consumers; separate bankruptcy proceedings will determine how the money is recovered and distributed. However, it would accomplish a rare feat in the realm of financial crimes: it would result in the imprisonment of the top crypto boss.
Did you forget what SBF did?
So, aside from failing to keep his company solvent and publicly humiliating his colleague-slash-ex, what precisely is Bankman-Fried accused of? Well, here’s a walk down memory lane.
Bankman-Fried is charged with seven counts of wire fraud, conspiracy to commit fraud of various types, and conspiracy to commit money laundering. Bankman-Fried has entered a not-guilty plea. The trial’s opening arguments on Wednesday clearly showed that his defense team will continue to sell him as a crypto guru who did not know much about finance and running a crypto business.
Many people believe that putting SBF in prison for this will hinge on establishing that he purposefully built a backdoor in FTX’s programming that allowed money to move between his two companies. Indeed, if prosecutors can establish this, he may be doomed.
The emergence of many forms of judicial procedures involving Bankman-Fried, his associates, and the celebrities who advocated his trade has added to the crypto misery. The fact that his alleged offenses do not cleanly fit into words like “Ponzi scheme” also does not help.
What to expect from the second week of trial
The trial, which is scheduled to run six weeks, will resume with important testimony expected from Ellison, who is considered the prosecution’s star witness after pleading guilty to multiple offenses. The court will not meet on Monday in observance of Columbus Day (Indigenous People’s Day) but will return on Tuesday at 9:30 a.m. ET.
Last December, Ellison, like Wang, pleaded guilty to various fraud counts. Wang, formerly known as FTX’s silent chief technology officer, introduced jurors to the convoluted financial structures that the government claims enabled the two firms to steal billions of dollars from FTX clients.
Just like John Deaton, Many in the crypto space eagerly await the end of this matter after 6 weeks. One X user who goes by the handle @Crypto_Ninja007 sted that “Everyone who thinks he’s innocent, benefited somehow!”
FTX has successfully recovered nearly $7 billion in assets. However, there is a growing call for SBF’s imprisonment to serve as a deterrent to other crypto innovators. Deaton is likewise steadfast in bringing SBF’s parents, Joseph Bankman and Barbara Fried, accountable.
Despite FTX’s current leadership pursuing a legal case against them, no regulatory agency has taken legal action against SBF’s parents. Deaton believes that Bankman and Fried bear full responsibility for their son’s alleged wrongdoings which is echoed by others in the sector.
According to Bloomberg, Stanford University has chosen to return the whole amount of donations received by FTX, which amounts to approximately $5.5 million.
