The FTX crisis, which was spearheaded by Sam Bankman-Fried (SBF), severely damaged the market for digital assets. The crypto community and leaders have criticized watchdogs for allowing SBF to remain free while the FTX infection is on a spread. The XRP attorney, however, changed his mind on SBF’s potential arrest.
The FTX and BlockFi arrangement, according to John Deaton, the XRP holders’ attorney in the SEC vs. Ripple lawsuit, was likewise fraudulent. SBF stipulated that the money had to be kept on FTX while he illegally lent it to his other business. This is theft in its purest form.
SBF performed this step frequently, demonstrating a goal. He used the cash improperly to lend to Alameda. He did, however, continue to make purchases and donate to politics with the same money.
SBF purchased property worth over $100 million in his parents’ names using customer payments. While the XRP attorney contends that the BlockFi agreement alone gives SBF express intent to be jailed and U.S. jurisdiction. But BlockFi is probably going to declare bankruptcy.
Jail for SBF
Deaton emphasized that the question of whether the SBF jail should open up immediately or wait a few weeks is the only one that can be raised here. This will be decided once more precise evidence has been gathered. However, a number of specialists have asserted that there is ample justification for SBF’s current imprisonment.
The XRP lawyer hinted that these efforts against SBF will convene everyone who has been lobbied to the negotiating table in order to reach an agreement with the US Criminal Division.
However, if SBF were ever prosecuted, the outcome wouldn’t likely surprise anyone. The former CEO of FTX may receive a lesser sentence than others.
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