10/12/2022
When will Sam Bankman-Fried go to jail?
Why is the case related to the collapse of the largest exchange FTX not moving? After the closure of the financial company, its former CEO Sam Bankman-Fried came under scrutiny from the Department of Justice and the SEC. The investigation is in full swing and now the disgraced businessman is called to testify. Fact-checking will be conducted by the Committee on financial services of the House of Representatives.
Recall that in connection with the collapse of FTX, the exchange currently owes its customers $ 3.1 billion. Due to the sudden and severe collapse of the company, more than fifty of the largest creditors and millions of users were left without their funds. Therefore, the question of clients about the imprisonment of the head of the collapsed "pyramid" is quite reasonable.
Unfortunately, the guilt of the defendant has not yet been proven. No one knows if the CEO acted correctly or with criminal overtones. The defendant is opposed by Sam Bankman-Fried's deputy, John Jay Ray III. An expert who helped investigate the collapse of Enron is confident in the complete incompetence of FTX management. He said he had never seen a more terrible failure and ignorance of corporate control.
Legal experts report that until numerous investigations into the circumstances of this event are completed, none of the participants in the case will be behind bars, including the CEO.
Among other things, other factors complicate the investigation process. For example, the exchange was registered in the Bahamas and only 2% of the clients were from the US. Due to differences in jurisdiction, unforeseen difficulties are created: in obtaining reliable information, delaying the provision of documentation, and more.
Another reason is that FTX was not an ordinary exchange, but traded in cryptocurrency. According to lawyers, American law is not yet familiar enough with these coins to competently understand cryptocurrency fraud of this size.
The main problem lies in collecting information and presenting competent charges that prosecutors will be able to bring to an end and put the perpetrators behind bars.
Due to the discrepancy between the Bahamian and American laws that regulate various aspects of the organization and conduct of this kind of business, the case can drag on for a long time. One thing pleases - there is an extradition treaty between the United States and the Bahamas. That could help if things get worse, said Thomas Gorman, a financial investigative defense specialist, and partner at major law firm Dorsey & Whitney LLP.
According to Thomas, everyone in Washington DC is involved in the case. But so far no criminal charges have been filed against the CEO of FTX. According to the latest data, Sam Bankman-Fried does not keep silent, gives interviews all the time, and writes on Twitter. For example, he stated in the New York Times that he did not do anything knowingly. Everything that happened is a sad coincidence. According to experts, the head of the collapsed stock exchange is trying to charm citizens to minimize his involvement and guilt. According to Sam, his only fault is incompetence.
After such statements, it becomes clear that this story will continue for a very long time.
