The Sam Bankman-Fried trial sparks both hope and condemnation for cryptocurrency.

Nov 3
With his conviction for large-scale fraud on the FTX exchange, Sam Bankman-Fried poses a seemingly straightforward question: what will happen to cryptocurrencies next?

The former billionaire, who was a fervent supporter of the sector, could spend decades behind bars; his decline represents the ups and downs of the digital asset market in the last 2.5 years.

According to some cryptocurrency specialists, his conviction on seven charges of fraud and conspiracy heralds the end of an age marked by dangerous and illegal activities and the beginning of a more regulated future where blockchain technology and digital assets will be used more frequently.

Some outside the business are adopting a much more aggressive stance, contending that the decision proves cryptocurrency is a vulnerable industry that attracts hackers, criminals, and rogue regimes.

Following the decision, cryptocurrency markets dropped, although losses were mostly controlled. As of 10:46 a.m. in Singapore on Friday, Bitcoin, which has increased by more than 100% this year after a $1.5 trillion digital asset crash in 2022, had dropped by roughly 1% to $34,660.

"The charges in the FTX case signal the end of an era for Ether Capital Corp., a company that makes investments in blockchain and cryptocurrency projects," stated CEO Brian Mosoff. "The days of fraudulent assets, Wild West exchanges, scams, and underground industries on the Internet are over."
 
"Learn from this and move on," stated Paul Veradittakit, managing partner of venture capital firm Pantera Capital. He also stated that "due diligence in cryptocurrency continues to evolve in this area along with the current market, and regulatory clarity is necessary and beneficial to prevent such situations."

"This is a watershed moment that further confirms that crime does not pay in the digital asset space," says Angelina Kwan, CEO of regulatory consultancy Stratford Finance Ltd. "Enforcement measures are in place to reassure investors and traders that the industry is maturing, and this was the first step towards emerging from the crypto winter, which the demise of FTX contributed to."
 
"There are other players in the cryptocurrency space besides FTX and Sam Bankman-Fried," Better Markets co-founder Dennis Kelleher stated. "The whole cryptocurrency sector and its business model—which is predicated on breaching the law regarding a financial commodity with no socially useful purpose—are condemned by today's verdict.”
The usage and value of cryptocurrencies, on the other hand, are entirely illegal.
Examples include malware, gambling, money laundering, and supporting terrorist organizations and rogue regimes like Iran, North Korea, and Hamas.
 
Referring to cryptocurrencies and blockchain technology, Campbell Harvey, a finance professor at Duke University, stated that there is a significant breakdown in our financial system, and that process includes learning from failures.

He thinks that although there are difficult lessons to learn, the system gets stronger as a result of these mistakes. As such, we should constantly consider the bigger picture and work to improve our financial system, which promotes financial democracy and quicker economic progress.

Created with