Sam Bankman-Fried is an entrepreneur and founder of FTX, or Futures Exchange, a cryptocurrency exchange service. November 2, Fried was convicted of fraud. Fried was widely regarded as a pioneer for cryptocurrency after his platform launched back in May 2019. Fried was quickly ranked as the 41st richest American in the Forbes 400. However, in 2022 the company was forced to file for bankruptcy following a liquidity crisis. This crisis exposed an $8 billion dollar hole in the company and is used as a basis for many of the fraud charges brought against Fried. 

Fried’s collapse started in 2022 when he resigned as the CEO of FTX. That same day FTX and its assets all filed for bankruptcy. Fried quickly took a bailout deal and in one day he saw his net worth go from $15 Billion dollars to $1 billion, the largest single day lost tracked by the Bloomberg Billionaire index.

The bankruptcy of FTX shook the rapidly growing cryptocurrency industry. People who invested in the platform made mass withdrawals, which caused the company’s liquidity crisis. The withdrawals led to the company’s bankruptcy which exposed the almost $8 billion dollars that had been stolen from customer accounts. Fried was found to have moved money through FTX’s sister company Alameda Research. 

Fried was found guilty of all seven counts brought about by the FTX trial and there is much debate about the time he’ll face in prison, with the maximum sentence being up to 115 years. Those concerned about the security of the growing crypto industry, however, had their fears quelled with the trial as reported by The Street, a publication specializing in reporting on crypto.

“The epic collapse of FTX was driven by the criminal actions of people, not underlying issues with the crypto asset class,” said Aaron Arnold, a Senior Associate Fellow for the Center for Financial Crime and Security Studies. 

While the cryptocurrency market has been able to recover from Fried’s FTX scandal, those following the case are eagerly debating on whether or not Fried will receive a life sentence. The multiple billions of dollars Fried stole affected millions of users and jeopardized the budding cryptomarket. Those who were affected by Fried’s business dealings are still waiting for refunds in the wake of the FTX scandal. Fried’s sentencing on March 24, 2o24 will conclude this developing story.