Posted by Avery Smith
This is the Business Law breakdown and today I will be talking about the article After a year in FTX’s shadow, the crypto industry is delighting in Bankman-Fried’s conviction written by Allison Morrow of CNN. The article was updated on Saturday November 4th, 2023. It is about the downfall of FTX founder Sam Bankman-Fried, who was recently convicted for fraud after it was found that the crypto company was based on fraud. The company has gone bankrupt and some say that the findings have sent the once trending crypto community back a few years.
With the recent conviction of Bankman-Fried the most interesting part the article had pointed out is that “No one is happier about that than the professionals in the industry that made him, for a time, a rock star.”. This specific quote brings out how everything changed with findings of fraud. It’s very serious in the world of business especially crypto as it shows that the company wasn’t ethical as one thought. Crypto is struggling now after with questions about what is being done with money and where it is coming from. The SEC has attacked FTX with hostility lately even with the company filing for bankruptcy as that is the way it will attack digital currency for now on because of the unknown.
This article was very interesting to me based on the fact that I remember how significant the news was when FTX initially had been called for fraud. FTX had multiple celebrities that were advertising it as well so the name was familiar. With this being non-ethical Bankman-Fried being convicted for fraud makes sense as he didn’t follow appropriate laws or clean funding. It sends things into an unknown for the Crypto community of how it will be able to grow with situations such as these the reason why it might not be able too.
Article link: https://www.cnn.com/2023/11/04/business/crypto-industry-bankman-fried-guilty/index.htmlLinks to an external site.
Avery is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2026.