The case of Sam Bankman-Fried is one of the most complexes and calculated in the evolution of cryptocurrencies, which has indeed created countless new millionaires, including this young man of only 30 years of age. A website like this app will assist traders in their bitcoin journey with the best trading tools, fast payouts, and phenomenal customer support.
Bankman-Fried came to form a fortune that, according to Forbes, positioned him among the top 60 millionaires in the world.
The beginnings that pointed to the success
This brilliant young man, with an ability to perform mathematical and physical calculations since he was a teenager, made him stand out among many of his peers; he was simply a brilliant student, the son of parents who carried out their professional duties on the Stanford University Campus.
His beginnings were basically in the investment firm Jane Street Capital, where he learned about the economic environment and how to operate. Once he obtained his degree, he dedicated himself entirely to working in this company, acquiring extensive knowledge about the equity market cryptocurrencies.
His altruistic qualities made him stand out from the rest of the investors in the cryptocurrency market. Sam always claimed it was more satisfying to work and accumulate his fortune to donate it to those most in need later.
His career at Jane Capital lasted only three years, which represented enough time to become a brilliant mind in cryptocurrency investments; upon retiring, he joined Wang, an expert in terms of technology, thus registering his crypto investment firm known as Alameda Research.
Through this company, only the arbitration of digital financial instruments was executed to get the most out of the price differentials that undoubtedly accumulated the fortune of the young investor.
His central vision of fortune focused on positioning Bitcoin in South Korea and Japan, where for his dream, it could be an excellent business to buy crypto assets in the United States and resell them in the Asian market, which for him was simply easy money.
With the creation of Alameda, he achieved success, so he had to create another strategy that would continue to generate income. That was when he decided to make his cryptocurrency exchange platform. However, he started in Hong Kong, and the company’s risk management could have been better due to its favorable regulation of cryptocurrencies.
From the beginning, it looked like a fraud.
With the shortcomings and limitations that the company, whose name is FTX and recognized worldwide as one of the largest crypto Exchanges, had, it was seen that the possibility that its users could be involved in fraud.
When a company of this type offers financing in a market whose volatility is high, it must always have the legal and financial support that allows not only clients but shareholders to be able to monitor the capital of the company time and thus be able to verify that the investments made were supported.
In the specific case of FTX, no guarantees or conditions were required from the financing company Alameda Research, which also belonged to Sam; this implied transferring money from one company to another without making it public to its investors and depositors, the diversion of funds it was evident, a mixture of cash was executed which later resulted in the bankruptcy of both companies.
During the bullish phase of cryptocurrencies, everything was beautiful for both companies due to a large amount of money they accumulated, generating trust in their users. But, unfortunately, the diversion of more than 8 billion dollars from the clients themselves was discovered by Sam’s background Bankman-Fried.
Some of the charges you may face
Today, the one who could continue to be considered a cryptocurrency genius and not the biggest cryptocurrency scammer of the decade is detained in the Bahamas and accused of around eight crimes.
If convicted, this young man could spend many years behind bars, but below are some of the charges for which he will possibly go to jail, going from living in a mansion to spending the rest of his days in a maximum security prison.
Most of the accusations are financial in terms of the jurisdiction of the United States:
- Conspiracy to commit fraud and money laundering.
- Violation of the financing laws of Political Campaigns.
- Fraud investors of the FTX Exchange by using the funds for their enrichment.
Conclusion
It is one of the most calculated scandals in the history of cryptocurrencies, where many clients of the FTX exchange platform found themselves in the painful situation of declaring bankruptcy with the anguish of not being able to recover said money invested.
